Industry News

The mobile telecommunications industry in the Democratic Republic of Congo (DRC) is buckling under an “excessively heavy” tax burden, hampering investment and stalling the country’s digital transformation, according to a new GSMA report.

In its latest country analysis, “Mobile Sector Taxation: Comparative Fiscal Burden in DRC,” the global telecom industry body warns that the effective average tax rate (EATR) on pre-tax profits in the DRC’s telecom sector has soared to an alarming 91%. This far exceeds that of the mining sector (71%) and retail finance (34%), placing a disproportionate strain on an industry critical to the country’s digital future.

The report attributes this imbalance to a tax system skewed heavily toward gross revenue rather than net income. Only 8% of telecom tax contributions are based on actual profits, compared to 35% in mining and 54% in retail finance. Sector-specific levies, excise duties, and non-income-based taxes are significantly driving up operational costs.

“This tax structure is unsustainable,” the GSMA warns. “It limits operators’ ability to invest in infrastructure upgrades and network expansion, especially in rural and underserved regions—further entrenching the digital divide.”

The consequences are far-reaching. Elevated costs, driven in part by consumer-facing excise taxes, threaten affordability and digital inclusion in key sectors such as health, education, agriculture, and commerce. The report cites World Bank estimates suggesting that eliminating sector-specific taxes could extend 3G and 4G coverage to an additional 1.5 million Congolese and boost mobile internet adoption by over 6 percentage points.

While the GSMA advocates aligning telecom taxation with sectors like mining and finance—both capital-intensive industries with lower relative tax burdens—the conversation comes at a sensitive political moment. The Congolese government, facing rising fiscal pressures, views the telecom sector as a potential revenue stream and questions whether multinational operators are paying their fair share.

As the country weighs reforms to balance public financing needs with its digital ambitions, the GSMA’s findings land squarely in the midst of a charged policy debate. Whether the report triggers a rethink of sector taxation or further entrenches scepticism around industry lobbying remains uncertain.

Source: ecofinagency.com

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The global mobile industry recorded a 4.5% drop in operational emissions in 2024, according to the GSMA’s latest Mobile Net Zero report—bringing the sector’s total emissions reduction to 8% since 2019, even as global emissions rose by 4% over the same period.

Despite the progress, the GSMA cautions that the sector must accelerate its decarbonisation trajectory, halving emissions annually by 7.5% through 2030 to align with net-zero commitments by 2050. The report is based on data from 77 mobile operators, representing 80% of global mobile connections.

Europe leads the emissions race, with 56% of its operators reporting significant reductions between 2019 and 2023, followed by North America (44%) and Latin America (36%). Although Chinese operators were not part of the official dataset, external analysis suggests a 4% decline in China’s operational emissions in 2024 after years of growth.

GSMA Head of Climate Action, Steven Moore, said: “The industry isn’t greenwashing or greenwishing—it’s green acting. But to stay on course, we need faster progress, broader access to renewables, and greater cross-sector collaboration.”

Operators have made measurable gains by transitioning to renewable energy—now accounting for 37% of their electricity usage, up from just 13% in 2019—and by phasing out legacy infrastructure and diesel reliance. European operators such as Deutsche Telekom, Vodafone, and O2 Telefónica are driving long-term Power Purchase Agreements (PPAs) to secure clean energy sources.

However, the report flags Scope 3 emissions—those generated across supply chains and device manufacturing—as the sector’s most pressing challenge. These emissions constitute more than two-thirds of the industry’s carbon footprint and remain poorly disclosed.

Australian operator Telstra is cited as a leader, having reduced Scope 3 emissions by 31% since 2019. Industry-wide, there is growing momentum toward circularity: 12 leading operators have pledged to retrieve 20% of sold devices by 2030 to keep them out of landfills. Refurbished handsets, according to the report, produce up to 90% less carbon than new devices.

The GSMA report makes clear that while the mobile industry is on the right path, the pace of change must accelerate dramatically to meet climate targets and build a sustainable, low-carbon digital future.

Source: Datacentredynamics.com