MEDIA STATEMENT ON THE TELKOM INITIAL PUBLIC OFFERING BY THE MINISTER OF PUBLIC ENTERPRISES, JEFF RADEBE

3 October 2002

Today we are launching the first phase of government's public education campaign in support of the long-awaited Telkom Initial Public Offering.

It is a milestone in the process of preparing all South Africans to participate in the listing of Telkom. It also reaffirms our commitment as government to the accelerated restructuring of state-owned assets and to the managed liberalisation of the telecommunications sector that will bring benefits to business and customers.

This commitment is consistent with the objectives of the Reconstruction and Development Programme and the government's broader macroeconomic reform for a better life for all. This programme seeks to promote economic growth, job creation, and access to affordable services for ordinary citizens. As we refocus the role of the state to take the plight of the poor seriously, we also unlock increasing opportunities for expanding ownership of wealth through black economic empowerment and for improving the efficiency and performance of state-owned enterprises.

The listing of Telkom will include a dedicated offer targeting historically disadvantaged individuals and groups, such as stokvels. Discounts are envisaged to address affordability, together with loyalty bonus shares to promote long-term shareholding.

To ensure this happens, we are embarking on a campaign to build public awareness and knowledge of shares, equity investment, and the capital markets in general.

Our campaign will expose all South Africans to the benefits of dealing in shares, and will help to build a culture of saving among our people.

There are eight elements to the public education campaign:

  1. Advertising: An integrated campaign using public, private and community media (print and electronic), as well as outdoor advertising, to ensure all South Africans are aware of the education campaign.
  2. Community radio: A focused initiative using community radio stations to reach communities outside the major urban areas. This initiative will see community radio stations hosting talkshows and community activities designed specifically to take the IPO into rural areas and to non-traditional investors.
  3. Financial literacy in schools: Teachers have been trained in the use of specially developed booklets on financial literacy for use at schools around the country.
  4. Outreach: A series of community-based activities is planned using government and civil society structures and multi-purpose community centres to make non-traditional investors aware of the initiative and to enable them to access it.
  5. Media campaign: A systematic programme has been developed to ensure effective coverage in the public, private and community media, highlighting key aspects of the retail offer through the financial and non-financial media.
  6. Website: A website goes live this week, providing details of the IPO and answers to frequently asked questions.
  7. Call centre: Government has established a call centre, which will provide advice to prospective investors.
  8. Information products: Brochures have been produced in several languages and will be distributed through post offices and Standard Bank branches.

We have every confidence that the campaign will succeed in mobilising ordinary South Africans to take advantage of this offer, and we hope the media will play its part in getting this message across.

For further please information call:
Pumla Mtyeku
Director: Communications (Department of Public Enterprises)
Cell: 0829032423