Date: 04/03/2003
Source: Ministry of Communications
Title: Matsepe-Casaburri: Telkom listing event


SPEECH BY THE MINISTER OF COMMUNICATIONS, DR IVY MATSEPE-CASABURRI, AT THE TELKOM LISTING EVENT, JSE Securities Exchange South Africa, 4 March 2003

Your Excellencies,
Honourable Ministers,
Distinguished guests,
Ladies and gentlemen - good morning.

The listing of Telkom this morning marks a profound change in our telecommunications landscape.

It is a major step for Government and our initiatives to ensure economic growth and development. In addition, it reinforces the broad liberalisation of the telecommunications sector.

It is a concrete expression of the broad policy framework that has been put in place by Government, which relates to infrastructure development, skills development, black economic empowerment and social development.

In the case of Telkom, it is important to emphasise how the company has approached these various challenges. Allow me to reflect briefly on this:

* In the case of infrastructure, the company's base has grown rapidly since 1998, and the expansion of its network has connected almost 2 700 villages for the very first time. The company has installed more than 130 000 new payphones, and its modernisation programme has ensured that its network is now 99.8% digitised
* In the area of skills development, it has spent over R2.4 billion on training over the past five years. On average, each employee has received 12.7 days training per annum, over half of it technical training
* In terms of black economic empowerment, total BEE spend made up 49% of the company's procurement spend and the company's BEE programme provided training to 273 black-owned companies. This is in addition to other job creation initiatives within Telkom's social plan agreed to by organised labour, which has seen 1 084 sustainable jobs created through the awarding of contracts worth R41 million
* Finally, in the field of social development, Telkom can walk tall. The company has actively ploughed back benefits to historically disadvantaged groups, providing extensive support - estimated at R40 million - for educational, job creation and childcare projects through the Telkom Foundation. The company's strategic equity partner, Thintana, has also managed its own extensive social investment programme.

These developments have been accompanied by greater transparency and improved corporate governance.

The combined effect of this is that investors will be able to feel confident that they are investing in a business that is not only commercially strong, but has achieved that commercial strength through responsible business practices and a strong commitment to social development.

Thank you.

Issued by Ministry of Communications
4 March 2003