Mactar Seck, Chief of Emerging and Frontier Technologies at the Economic Commission for Africa (ECA), presented a mixed view on taxing the ICT sector for economic growth and digital access.
Speaking at the ECA’s 2025 Conference of African Ministers of Finance, Planning, and Economic Development, Seck highlighted the need to balance taxation with optimising economic performance and job creation.
In a statement on Wednesday – yesterday, March 26 – the ECA Communications Section quoted Seck citing research showing how Zambia’s tax increases led to higher receipts, job creation, and a 14.6 percent rise in broadband penetration.
Kenya exhibited a similar trend, with broadband penetration increasing by 9.7 per cent. Meanwhile, Ethiopia and Nigeria reduced taxes and saw broadband growth of 4.6 percent and 4.9 per cent, along with significant job creation.
However, in these cases, tax receipts were lower. Seck explained that increased tax revenue in Zambia and Kenya resulted from enhanced productivity and a broader tax base.
He said research indicated that a 10 per cent rise in broadband penetration could boost GDP by between 0.8 per cent and 2.46 per cent.
In spite of progress, Africa remains the least connected continent.
Over the past five years, connectivity has only increased by 1 per cent.
Seck and other speakers stressed that affordability and the rural-urban digital divide remain major barriers to access.
“Africa’s broadband costs are at least five times higher than other continents. We must address this. The digital economy could reach $712bn by 2030,” he said.
Seck projected that this would increase Africa’s GDP by 8.2 per cent.
However, he urged countries to implement ICT tax policies gradually and monitor their economic impact.
“Most countries reducing ICT taxes have seen increased tax receipts, job creation, and broadband expansion. But we must approach this carefully, given current economic conditions,” he added.
