The GSMA has recently issued preliminary findings from research undertaken into taxation. Initially focused on Africa, the research shows that mobile handset sales have soared by 200 per cent in Kenya following the government’s 2009 decision to slash the 16 per cent Value Added Tax (VAT) levied on handset sales. The contribution of mobile telephony to the Kenyan economy has grown by almost 250%, while mobile-related employment has increased by 67%. As a result of improved coverage, quality of service and affordability, the productivity impact of mobile telephony on the Kenyan economy is estimated to have increased by a similar scale. More detail can be found here www.gsmworld.com/tax

This news shows the huge impact government action in Kenya has had on handset sales and shows that fiscal and regulatory policy can make a real difference to the affordability of mobile phones and subsequently to their new owners’ access to life enhancing information services. Many of those reading this will be acutely aware that enabling communities in low-to middle income countries to own and use mobile phones gives them access to a range of benefits, such as improved job prospects and business efficiencies, access to health information and connections with family and friends. And they will know that for women in particular, these benefits are marked: The Women & Mobile Report showed that, because of their mobile phone, 93% of women feel safer, 93% feel more connected to family and friends, 85% feel more independent and 41% reported increased income generating opportunities. Yet women, particularly those at the “Base of the Pyramid” (BOP), are not benefiting from mobile technology in an equal manner to men and meet with a number of barriers that cause a 21% gender gap in mobile phone ownership in these countries.

The GSMA mWomen Programme strongly promotes the role government can play in reducing this gender gap by reducing the cost of ownership of mobile, removing cultural barriers to mobile phone ownership by women, addressing limited technical literacy amongst women, and encouraging the development of value-added mobile services, such as health and education, that benefit women at the base of the pyramid.

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