Finance Minister in discussions to sell Telkom stake

Finance Minister Malusi Gigaba is in discussions to sell the government’s 39.75% stake in Telkom, said Gigaba’s spokesperson Mayihlome Tshwete.

According to a report by Fin24, Gigaba is discussing the sale with three Cabinet ministers – Economic Development Minister Ebrahim Patel, Public Enterprises Minister Lynne Brown, and Telecommunications Minister Siyabonga Cwele.

Tshwete said the Telkom sale would take place to recapitalise South African Airways, with the loss-making SOE continuing to drain the state’s coffers.

“We shouldn’t speak of it as a done deal. This is one of the things we are exploring. The alternative is for us to look for funding in other places, without imposing on other parts of government, as we want to make sure it does not have an adverse effect on the fiscus,” said Tshwete.

The latest report follows news from July that the government could give up a majority stake in Telkom to save SAA.

This followed Treasury’s R2.207-billion bailout of SAA in June.

Now read: Former Telkom Chief Commercial Officer Brian Armstrong joins Wits

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Finance Minister in discussions to sell Telkom stake