Smuggled phones often bypass safety standards and lack warranty coverage, leaving consumers vulnerable to defective products. By introducing mechanisms to curb smuggling, African governments can close loopholes, improve oversight, and protect consumers.

Egypt’s Finance Ministry and the Ministry of Communications and Information Technology have jointly launched a new electronic mechanism featuring a mobile application named "Telephony" (My Phone) to tackle mobile phone smuggling and promote the localization of mobile phone manufacturing. The new system, announced on December 31, aims to ensure fair competition in the Egyptian mobile phone market, which has recently attracted several international companies to manufacture various models locally.

According to a joint statement issued by the ministries, the mechanism will allow citizens returning from abroad to bring one mobile phone for personal use exempt from fees, provided it is registered through the "Telephony" application. This exemption will be valid for three months.

The application enables users to register imported mobile phones online, inquire about and pay any applicable fees electronically. It also aims to safeguard consumers from counterfeit and smuggled devices while streamlining customs procedures.

Customs duties and taxes on imported mobile phones will remain unchanged under the new system, which takes effect on January 1, 2025. Taxes and duties on imported mobile phones have been levied at 38.5 percent. However, the statement clarified that the regulations will not be applied retroactively, ensuring that phones activated before the implementation date will not be affected.

Egypt has been facing significant issues with phone smuggling. It is estimated that around 80% of mobile phones entering Egypt in 2023 and 2024 were smuggled, according to Mohamed Shamroukh, CEO of the National Telecommunications Regulatory Authority (NTRA). This has created unfair competition for local phone manufacturers, as smuggled phones often avoid customs duties and taxes.

The introduction of the "Telephony" app reflects Egypt's broader digital transformation agenda, which aims to integrate technology into public services. By leveraging electronic registration and payment systems, the government reduces bureaucracy, streamlines processes, and enhances transparency. This aligns with Egypt's Vision 2030, which emphasizes innovation and digitalization as key pillars for development.

Hikmatu Bilali