Government not selling its 40% stake in Telkom, Gungubele reaffirms

Reading Time: 2 minutes

The government will not sell its 40% stake in Telkom, which is listed on the Johannesburg Stock Exchange (JSE). Minister of Communications and Digital Technologies, Mondli Gungubele reaffirms this during a visit to one of Telkom’s Openserve data centres in Pretoria on Tuesday.

In a show of force, the government and Telkom say they would be working together to address the
country’s need for greater connectivity in a bid to boost the economic benefits that come with it.

Gungubele was taken on a tour of Telkom’s Openserve data centre facility, where he was given some insight into how the fibre business works.

He says Telkom is a crucial partner for government in ensuring that the country’s economic potential is realized from a digital connection perspective.

The Minister says they’re making sure that there’s greater internet connectivity in the country and says given the potential benefits of their relationship, government is not considering selling its 40% stake in the company.

“We were very clear. The reason we said we’re not selling is because we saw the future of their interventions, the plans they have, unlocking the value in a number of areas. The plans are of such a nature that they’re headed towards a crest now,” adds the minister.

Telkom echoes the minister’s view that it and the government needed to work together to realize the country’s digital aspirations.

It made a pledge to the minister that it would help achieve specific goals to empower the education sector by the end of March 2024.

Telkom CEO Serame Taukobong says, “We will commit today Minister that by the end of this financial year, we will help you connect up to 2 000 schools on fibre. That’s a firm commitment that we’re making and that commitment is built on the relationship, minister, that you opened up for us. And yourself madam dg, with the partnership of broadband Infraco, SA Connect and our partners in Sentech.”