Notes to the Group Annual Financial Statements | Note 4.5

Inventories comprise prepaid airtime, handsets and other related products.

Inventories are stated at the lower of cost (net of rebates and discounts) or net realisable value. The cost of inventory is based on the weighted average cost basis. Net realisable value is the estimate of the selling price in the ordinary course of business, less selling expenses. Provisions are made for obsolete, unusable and unsaleable inventory and for latent damage first revealed when inventory items are taken into use or offered for sale. Where unused PINs have been recycled and included in inventory for resale, the Group recognises the inventory at no value.

Inventories with a cost of R9.5 billion (2025: R10.4 billion) were sold during the year and have been charged to the income statement.

A general notarial bond is held by the Group’s bankers over airtime up to R1.2 billion (2025: R3.6 billion) as security for facilities utilised.