Technology
Phones getting cheaper
Smartphones are becoming affordable for low-income families through pay-as-you-go financing. Hormuud plans to finance 100,000 smartphones in Somalia by the end of 2026 with a $19 deposit, and in its pilot fewer than 4% of buyers failed to pay.
The force
Most Somalis with a phone have a basic one. In late 2025 there were 11.5 million mobile connections, and 75.7% of them were on 3G, 4G or 5G networks (DataReportal). But only 27.6% of people used the internet. A big reason is the cost of the handset.
Across low- and middle-income Africa south of the Sahara, an entry-level internet phone costs about 24% of a month's income on average, and up to 80% for the poorest (GSMA Mobile Economy Africa 2026). Paying a little each day, instead of all at once, is changing that.
Inside the country
Hormuud plans to finance 100,000 smartphones for low-income users by the end of 2026. Buyers pay a $19 deposit and need no credit history. In the pilot, fewer than 4% failed to keep up payments (TechCabal). Hormuud's 4G network covers more than 70% of the population (TechCabal), and mobile data costs about $0.40 per gigabyte (Broadband.co.uk).
Outside the country
- M-KOPA, which sells phones on daily payments in Africa, is reported to have reached 10 million customers (Launch Base Africa). That report says it took eight years to reach its first million and six more to reach ten, after it moved into smartphones. Its network has about 35,000 agents (Launch Base Africa).
- Ethiopia. Ethio Telecom sells devices from about $17 and finances up to 2 million a year (GSMA).
- Kenya. Smartphones rose from 44% to 50% of Safaricom's connections by May 2025 (GSMA).
- Smart feature phones, which cost less than smartphones but can run apps and payments, are being supplied to small traders through a Smart Africa and KaiOS partnership (Smart Africa). Shipment numbers were not published.
The wider gap
Across Africa, 63% of people live where mobile internet is available but do not use it (GSMA). The network is there; the phone and the data cost are the barrier.
What it means for young Somalis
Today's basic-phone user is tomorrow's smartphone user. Anything built for Somalis has to work on a basic phone now, and be ready for the smartphone that young people will soon hold.
Sources
- DataReportal · datareportal.com
- GSMA Mobile Economy Africa 2026 · gsma.com
- TechCabal · techcabal.com
- Broadband.co.uk · broadband.co.uk
- Launch Base Africa · launchbaseafrica.com
- Launch Base Africa · launchbaseafrica.com
- Smart Africa · smartafrica.org
Gathered in our research record “Foundational tailwinds”. Wikipedia is used only as a backup.
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