South Africa’s government will not sell its stake in Telkom to fund Eskom. This is according to a report by Bloomberg.
Last year news emerged that the government was planning to inject $870 million (R9.9 billion) into Eskom, and it may sell its stakes in Telkom and Vodacom to raise the money.
“National Treasury has already identified a viable strategy to raise the required amount of funding that could be executed,” said Treasury spokesman Jabulani Sikhakhane.
Bloomberg reported in October 2014 that well-placed sources said the government retained bankers to advise on the sale of its stake in Vodacom.
The latest Bloomberg report suggests that a possible sale of the government’s stake in Telkom is off the table.
Telecommunications Minister Siyabonga Cwele told Bloomberg they will not be selling Telkom because: “we want it to give Internet, we want connectivity”.