Handset tax to boost local competition

Parliament’s recent approval of the imposition of a 20 percent tax on imported mobile handsets is expected to generate GH¢49 million, as well as protect and expand local businesses.

Roland Agambire, Chief Executive Officer (CEO) of rLG Communications Limited, asked foreign mobile phone manufacturing companies to partner local assembling firms in order to boost the latter’s chances of competing favourably with the former on the market.

According to him, such partnerships would protect and grow local mobile phone assembling firms to help them remain competitive.

Analysts have argued that such a tax would engender the massive smuggling of handsets into the country, but rLG’s CEO insists the revenue could assist government.

In February this year, rLG Communications Limited, in partnership with Microsoft Corporation, launched a new technology, ‘Uhuru’ which means freedom in Swahili.

It is 3G enabled and runs on the Windows 8 Operating System.

“Such partnerships are what we are talking about. At least local companies could benefit from these and enhance their chances of competing fairly.”

A subsidiary of the AGAMS Holdings, rLG Communications is a Ghanaian-owned Limited Liability company engaged in the production of communications equipment such as mobile handsets, electronic notebooks, tablets, laptops, LCD TV monitors and other accessories.

With offices in Dubai, China, Nigeria, Angola, Kenya and The Gambia, the firm plans to expand into the West African sub-region and subsequently into the rest of Africa.

Sakah Ansah, Retail Manager of TECNO Ghana, also hinted that preparations were underway for TECNO to assemble its products in Ghana to offer jobs to Ghanaian youth.

In 2010, TECNO controlled about 33 percent market share of Ghana’s mobile phone distribution industry.