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Vodacom Group-controlled Vodafone Egypt has secured additional mobile spectrum as part of a multi-year investment programme announced by the Egyptian government, in a deal that will see Vodacom book an intangible asset of about US$350-million (R5.6-billion) in the 2026 financial year.
Egypt’s ministry of communications & IT and the National Telecommunications Regulatory Authority announced the programme on 7 February, offering mobile operators a structured pathway to acquire and renew spectrum over a six-year period running from the 2026 to 2032 financial years.
Vodafone Egypt, in which JSE-listed Vodacom holds a controlling 55% stake, has confirmed it will participate and has already secured 2x10MHz in the 1.8GHz band as part of the programme’s initial phase. The acquisition strengthens what Vodacom described as Vodafone Egypt’s “leading spectrum position” and is intended to help the operator capture what it called “significant latent data demand” in the country.
The financial structure of the deal involves a multi-year payment schedule. Vodacom expects to recognise an intangible spectrum asset of about $350-million, representing the present value of the payments. The associated financial liability will be roughly $250-million, with a $100-million instalment payable in the current financial year. The remaining balance will be settled in three annual instalments.
A second phase of the programme is expected to begin in the 2028 financial year and run through to 2032. During this phase, the Egyptian authorities are expected to release a sizeable allocation of 3.5GHz spectrum – key to 5G deployment – and renew existing 2.6GHz licences.
Standout performer
The investment comes at a time when Egypt has become a standout performer for Vodacom. In the group’s most recent quarterly results, for the three months ended 31 December 2025, Egyptian service revenue rose 39% year on year to R9.5-billion, accounting for 27.5% of group service revenue. Financial services revenue in Egypt surged almost 60%, driven by continued traction of the Vodafone Cash mobile money platform.
Vodacom acquired its 55% stake in Vodafone Egypt from parent Vodafone Group in December 2022 for R48-billion. The operation has since become a critical growth engine for the group, with Egypt’s large, young population and relatively low data penetration offering significant long-term upside.
Read: Vodacom leans on Africa growth as SA remains under pressure
Vodafone Egypt launched 5G services in June 2025, alongside other operators in the market, and the acquisition of additional spectrum is expected to support both 4G capacity and future 5G expansion. — © 2026 NewsCentral Media
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