Minister of Telecommunications Siyabonga Cwele has stated that the government will not sell its stake in Telkom.
Cwele said the government was no longer considering the possibility of selling its shares in Telkom, following Telkom announcing its interim results for the six months ended 30 September 2018.
Telkom’s fixed-line business showed a decline in the results, but its mobile business is booming – with big customer growth and revenue increases.
Cwele added that the government will once again get a dividend from Telkom, which has declared a dividend of 112 cents per share.
He also said that his department is supporting Telkom’s BEE facilitation application.
In December 2017, it was reported that the government was considering selling its 39% stake in Telkom to raise R4 billion.
At the time, the funds were reportedly needed to keep SAA and the SA Post Office alive, as the two state-owned entities were running at massive losses.
This has not changed, however, and entities like SAA, the SA Post Office, and Eskom continue to be big drains on the local fiscus.