(Bloomberg) -- Vodacom Group Ltd., Africa’s biggest phone company by market value, said first-half net income dropped 18% on currency devaluations in Egypt and Ethiopia.

Most Read from Bloomberg

• Under Trump, Prepare for New US Transportation Priorities

• Zimbabwe City of 700,000 at Risk of Running Dry by Year-End

• Saudi Neom Gets $3 Billion Loan Guarantee From Italy Export Credit Agency Sace

• The Urban-Rural Divide Over Highway Expansion and Emissions

• Arizona Elections Signal Robust Immigration Enforcement Under Trump

Net income declined to 6.84 billion rand ($388 million) in the period, the Johannesburg-based company said in a statement Monday. Vodacom also cut its interim dividend for the third consecutive time, reducing it to 2.85 rand per share from 3.05 previously.

Companies operating in Africa have struggled with currency devaluation, which can wipe out profits in the worst impacted countries. In Ethiopia, where the government ended its fixed exchange rate with the dollar, Vodacom’s earnings were cut by 1.1 billion rand in the first half, the company said. Rival MTN Group Ltd.’s profits were cut by the devaluation of the naira in Nigeria.

“In Egypt, the outlook on the currency is a lot more stable going forward,” said Vodacom Chief Executive Officer Shameel Joosub in an interview. “The impact is coming from Ethiopia that went through a currency reform, and everything that was dollar based you then had to take the day-one impact immediately.”

Still, these markets have the potential to be major drivers of growth for the carrier, which has a customer base of more than 200 million people. Vodacom will continue to invest in data, content, fiber and financial services in Egypt, and expects growth to pick up as currency issues ease, Joosub said.

“Revenue trends are encouraging whenever the currency headwinds will fade, but looks like we are not there yet,” said Peter Takaendesa, the head of equities at Mergence Investment Managers.

Vodacom shares fell 5.4% at 10:41 a.m. in Johannesburg, after earlier falling as much as 5.9%, the biggest intraday decline since January. The stock has dropped 6.7% this year to value the company at 205 billion rand.

Joosub is working to expand the company’s fiber footprint across the continent through joint ventures. In South Africa, the company is faced with significant regulatory challenges to its multi-billion-rand fiber deal, where an antitrust tribunal blocked its plans to buy a stake in Remgro Ltd.’s business.

In the medium-term Vodacom wants 25% to 30% of its revenues to come from new services such as fintech and digital services, Joosub said. Vodacom has 83 million fintech customers, making it the largest fintech business in Africa, he said.