Telkom’s share price has increased 1% after the telecommunications company announced the appointment of Serame Taukobong as its Chief Executive Officer designate.

He will take over the reins when current CEO Sipho Maseko vacates his position in June next year. Taukobong is currently the CEO of Telkom Consumer Business. He has previously served as CEO of MTN Ghana.

Telkom says Taukobong is going to work closely with Sipho Maseko from now until he leaves at the end of June next year.

Maseko has been widely praised for steering Telkom to profitability and demonstrating that parastatals can be run for the public good and at the same time not place a burden on the state’s coffers.

“The market welcomed the announcement; the share price is up…it gives comfort as opposed to when the initial announcement about Mr. Maseko stepping down was made.  There was a vacuum about secession. In terms of the value creation, he understands that he has been part of the Telkom exco, so he should be familiar with other parts of the business going forward,” says market analyst Patrick Mathidi.