Telkom chairman Jabu Mabuza has said that the telecoms company will be adversely affected by the weakening of South Africa’s rand, and its credibility, following President Jacob Zuma’s decision to axe Nhlanhla Nene as minister of finance.
Mabuza was speaking to the Sunday Times, where he said that South Africa was “on the back foot” due to Zuma’s actions.
He said he does not want to think about how international players took the decision by Zuma. “I would rather think about how we’ll be able to dig ourselves out of the debris,” he said.
Telkom buys most of its equipment from international markets, said Mabuza, which means that a weak rand affects how much this equipment costs.
Telkom CEO Sipho Maseko is “frantically redoing the sums he did last year”, he said.
Stop the own goals
Mabuza said the country needed to stop scoring own goals if it wanted to improve its prospects.
“Whether they’re own goals by appointing and firing ministers, or own goals by protest action, or own goals by people saying: I’m going to resign so that I can withdraw my pension. These are all own goals.”
He also touched on SAA, saying he would not tolerate government interference – referencing the “fractious and dysfunctional board” at the airline.
He believes new minister of finance Pravin Gordhan will help resolve the airline’s problems, though.
The full report is in the Sunday Times – 31 January 2016.