DRC pressed to eliminate tax on mobile devices

02 March 2022

The Democratic Republic of Congo (formerly Zaire) has had a tortuous history since gaining independence. The country’s stability has been affected by disputes among rival groups and armed militias, particularly in the far eastern provinces and Katanga. This has resulted in considerable social upheaval, exacerbated by considerable corruption within the government.

Sébastien de Rosbo,
research manager, BuddeComm

Sébastien de Rosbo,
research manager, BuddeComm

The national telecom system remains one of the least developed in the region. The government can only loosely regulate the sector, and since the national telco SCPT has little capital to invest, much of the investment made in infrastructure is derived from donor countries or from the efforts of foreign (particularly Chinese) companies and banks. Efforts have been made to improve the regulation of the telecom sector, with a revised Telecommunications Act adopted in May 2018. However, the practical implementation of the Act’s measures remains questionable. Indicative of the character of the market is the levy on mobile devices imposed in 2020. While nominally intended to help address fraud, the levy has been widely condemned by consumers as a tax which has enriched a few. This sentiment has not been helped by the fact that the funds levied through to December 2021 could not be accounted for in government accounts.

Given the limited and decrepit condition of fixed-line infrastructure the mobile network operators have become the principal providers of basic telecom services. More than a dozen new licenses were issued in the early years of the century, but many of the licenses failed to launch services and the proliferation of networks, as well as the poor monitoring of spectrum assets, caused frequent problems with spectrum shortages, interference, and compatibility issues. As a result, the mobile sector entered a period of consolidation, including the acquisition of Tigo Congo by Orange Congo in April 2016, which greatly increased the latter’s market share.

The development of the DRC’s internet and broadband market has been held back by the poorly developed national and international infrastructure. However, the country was finally connected to international bandwidth through the WACS submarine cable in 2013, while SCPT continues to roll out a fibre national backbone network with support from China. Breakages in the WACS cable have exposed the vulnerability of international bandwidth, which is still limited. To address this, Liquid Intelligence Technologies has built a landing station for the Equiano submarine cable, and has also completed a 5,000km cable running through the DRC to link to cable systems landing in countries facing the Atlantic and Indian Oceans.

The country’s first commercial LTE networks were launched, albeit geographically limited, in May 2018 soon after LTE licenses were issued. Mobile operators are keen to develop mobile data services, capitalising on the growth of smartphones usage. There has been some progress with updating technologies, with Vodacom DRC having upgraded much of its GSM network to 3G by late 2021.

Key developments:

  • Orange Money develops its service in partnership with Flash International;
  • NuRAN Wireless opens sites in partnership with Orange;
  • Vodacom DRC management is transferred to Vodacom South Africa under a reorganisation plan;
  • Liquid Intelligence Technologies is licensed to build the Equiano cable landing station;
  • Helios Towers completes major tower infrastructure upgrade;
  • Report update includes operator data to Q3 2021, the regulator’s market data to March 2021, updated Telecom Maturity Index charts and analyses, assessment of the global impact of Covid-19 on the telecoms sector, recent market developments.


Table 4 – Growth in the number of mobile subscribers and penetration rate in the DRC – 2011 – 2026

Year Subscribers (million) Penetration
2011 15.645 23.4%
2012 20.093 29.1%
2013 28.232 39.6%
2014 37.103 50.3%
2015 37.753 49.5%
2016 28.889 36.7%
2017 35.366 43.4%
2018 36.471 43.4%
2019 37.123 44.2%
2020 40.798 48.5%
2021 (e) 44.470 52.9%
2022 (f) 47.580 56.6%
2023 (f) 49.960 59.4%
2024 (f) 51.460 61.2%
2025 (f) 52.490 62.4%
2026 (f) 53.540 63.7%

Source: BuddeComm based on regulator data


Chart 12 – Growth in the number of mobile subscribers and penetration rate in the DRC – 2011 – 2026

Source: BuddeComm based on regulator data www.budde.com.au