• Egypt allocated 410 MHz of new spectrum worth $3.5 billion in one transaction doubling available frequencies overnight, matching 30 years of prior assignments
• POTRAZ data shows Econet dominates (73% subscribers, 78–82% data/voice share, aggressive 5G rollout), yet high IMTT (2%), VAT (15.5%), 15% digital tax keep data expensive
• Zim should launch large-scale mid-band spectrum release/auction, tie allocations to rural coverage, infrastructure sharing, and reduce IMTT/VAT/digital taxes on imports and investments to lower costs

Harare- Egypt, Africa's leading digital powerhouse and a standout performer in telecommunications across the continent, has once again demonstrated bold leadership by signing a landmark $3.5 billion spectrum allocation agreement in early February 2026.

This deal, hailed as the largest in the country's telecommunications history since mobile services began 30 years ago, assigns an additional 410 MHz of new spectrum to its four major mobile operators, state-controlled Telecom Egypt, Vodafone Egypt, Orange Egypt, and E& Egypt—in a single transformative transaction.

Communications Minister Amr Talaat emphasised that this allocation effectively doubles the spectrum available to operators overnight, matching the total frequency assigned over the past three decades combined and aligning seamlessly with Egypt's 2026-2030 National Spectrum Strategy.

Building on the commercial launch of 5G services in June 2025, the move tackles chronic challenges such as network congestion, coverage gaps, and surging data demand while positioning the sector for advanced applications in AI, IoT, and high-speed digital services.

The agreement also injects vital U.S. dollar revenues into government coffers through structured payments, bolstering economic stabilization amid forex improvements from IMF programs, tourism, remittances, and Gulf investments.

This strategic public-private partnership has boosted operator confidence, reinforced Egypt's regional model for proactive spectrum management, and solidified its position as the continent's digital leader evidenced by top rankings in fixed broadband speeds for over five years, a telecom sector contributing over 6% to GDP (up from 3.2% in 2018), and digital exports surging to $7.4 billion in 2025 with targets of $9 billion ahead.

Sub-Saharan Africa, in contrast, continues to trail in large-scale spectrum releases and full 5G readiness, with fragmented policies, funding constraints, and slower regulatory progress limiting widespread adoption despite momentum in select markets. While North African leaders like Egypt and Tunisia advanced dedicated 5G spectrum allocations as early as 2024-2025 generating substantial revenues and enabling faster deployments, Sub-Saharan Africa has seen more gradual progress, with South Africa maintaining regional leadership in performance but still grappling with spectrum scarcity. Broader continental reports highlight that mobile operators invested heavily (over $28 billion in recent years, with projections to $62 billion through 2030), yet artificial shortages, high costs, and inadequate harmonization have constrained digital transformation, resulting in lower mobile broadband penetration, persistent rural-urban divides, and heavy reliance on legacy networks in many nations.

Egypt's $3.5 billion deal stands out as one of the continent's most substantial single-transaction spectrum commitments in latest history, far exceeding smaller or phased auctions elsewhere and illustrating how decisive government action can accelerate progress even amid economic challenges.

Zimbabwe, as a Sub-Saharan nation confronting comparable issues with foreign currency shortages (though lately boosted by gold and tobacco bull runs), infrastructure underinvestment, and the imperative for 5G expansion, can draw powerful lessons from Egypt's approach to amplify its own local telecom sector.

With operators like Econet, NetOne, (except Telecel, NetOne trying) exhibiting strong momentum, mobile revenues rising significantly, capital expenditure continuing to surge, and mobile penetration reaching 104.83% in Q3 2025 with active subscriptions growing 2.13% to 16,432,685, the country is well-positioned for accelerated growth if spectrum bottlenecks are addressed decisively.

POTRAZ's latest Q3 2025 report show this progress, showing mobile voice traffic surging 30% to 3.29 billion minutes, driven largely by data demand, while Econet solidified its dominance with a 78.3% market share in mobile internet and data usage, up 6.3% from Q2, and its data traffic climbing 15.5% to approximately 35 petabytes.

Econet's 5G prowess stands out particularly, having deployed over 160 5G sites by early 2026, including 100 new sites in the first half of the year alone, through a strategic partnership with Ericsson that upgraded its core network to support 5G Standalone (SA) capabilities, enabling ultra-low latency, massive IoT connectivity, and enhanced scalability for future innovations like AI-driven services and smart cities.

This positions Econet as Zimbabwe's frontrunner in next-generation networks, outpacing competitors with faster deployment in urban hubs and rural extensions, commissioning 77 new base stations and modernizing hundreds of radio access sites in 2025 to bridge digital divides and boost overall connectivity. However, to sustain and expand this 5G leadership,

Econet and other operators would benefit from targeted government relief, such as expedited spectrum allocations in mid-bands for optimal coverage, subsidies or tax incentives for infrastructure rollout in underserved areas, and streamlined regulatory approvals to reduce deployment timelines and costs amid power instability and landlocked logistics challenges.

At the government level, high taxes like the 2% Intermediated Money Transfer Tax (IMTT) on USD transactions (reduced to 1.5% for ZiG but still burdensome for forex-heavy telecom imports), the recent VAT increase to 15.5%, and the new 15% Digital Services Withholding Tax on offshore payments for digital services, all effective from January 2026 impose significant financial pressures on telecom companies, which inevitably pass these costs onto consumers through higher tariffs.

This contributes to Zimbabwe having some of the most expensive data rates in the region, with a 10GB monthly bundle costing $13 on Econet and $12 on NetOne, where data often depletes rapidly due to network inefficiencies, high demand, and limited spectrum leading to congestion.

POTRAZ's updated National Frequency Allocation Plan and ongoing efforts toward a 2026-2030 National Digital Roadmap offer a solid base, but mirroring Egypt would involve prioritizing a large-scale, multi-band spectrum release or auction to substantially increase available frequencies, focusing on mid-band holdings essential for effective 5G coverage and capacity.

This could generate meaningful government revenue in stable currency, spur operator investments in rural expansion and fibre backhaul, alleviate urban congestion, and promote healthy competition without excessively burdening consumers.

Key adaptations for Zimbabwe include forging public-private partnerships (as Egypt successfully did), ensuring transparent and fair allocation processes to foster investor trust, aligning with African Union spectrum guidelines to prevent isolation, and linking releases to enforceable performance obligations such as rural coverage targets and infrastructure sharing to lower costs.

By viewing spectrum as a strategic enabler for long-term growth rather than merely a short-term fiscal tool, in line with Egypt's visionary 2026-2030 framework, and providing relief through tax reductions to curb the inflationary impact on data prices, Zimbabwe's government could catalyse faster digital inclusion, empower local players like NetOne, overcome connectivity barriers intensified by power instability and landlocked geography, and establish the telecom sector as a foundational pillar of economic recovery and innovation moving forward.

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