Vodafone Egypt Affected by a Lack of Foreign Currency to Settle Bills
Published on: 25th Apr 2013
Note -- this news article is more than a year old.
Vodafone Egypt is facing an unusual financing problem when paying its bills a lack of foreign currency. The company is asking suppliers to accept payment in the local currency to help stem the problem.
Vodafone Egypt's CEO, Hatem Dowidar told local media that the problem wont affect its earnings, but the inability to purchase equipment and services could impact on long term growth.
"So far we have prioritised things like roaming, SIM cards and top-up cards, but that's at the expense of network equipment and infrastructure," he told Reuters, adding that revenue sharing on international roaming deals was also problematic.
Egypt's foreign currency reserves have been deeply reduced since the overthrow of the dictator, and the situation is leaving many companies unable to secure currency other than on the black market at inflated rates.
As a result, Vodafone has scaled back network upgrades in recent months in order to preserve currency reserves for settlement of overseas roaming liabilites.
Vodafone Egypt is 55% owned by Vodafone and 45% by the state-owned landline operator, Telecom Egypt.
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