Telkom is considered to be the top black empowerment company in the country.

Regarded as the backbone of the ICT sector, South Africa’s second-largest listed company has seen its value triple based on its stability, performance and track record

Telkom may have started out as the national telephone carrier in 1991, but it has grown into the largest and most dynamic communications services provider in Africa and garnered a reputation as experts in the field. Boasting world-class infrastructure, it provides innovative solutions to a wide range of customers, staying on top by investing in new technologies and integrated support systems.
After more than a decade in the business, Telkom has a proven track record and leading market position in fixed-line, mobile, international gateway services, broadcasting, satellite, e-commerce, data and VANS (value added network services). The firm currently ranks as one of the top two internet service providers (ISPs) in the country, and its residential ADSL services are considered to be South Africa’s top broadband offerings.

Capitalizing on its top position, Telkom is looking to expand into the rest of Africa and abroad by partnering up with companies in Europe, Asia and America. It currently has a joint venture with Vodafone at Vodacom and is looking to introduce Vodacom into other parts of the continent. Papi Molotsane, the company’s CEO, says, “We have to look at opportunities in other parts of Africa to make a footprint for ourselves, and to be part and parcel of the new African regeneration.”

LEAPEETSWE PAPI MOLOTSANE CEO of Telkom

Telkom is on the right track, as its successes are anything but few and far between. It was the driving force behind the fiber-optic system SAT-3/WASC/SAFE which improved South Africa’s international connectivity and helped to reduce the country’s reliance on foreign operators to route international traffic. Data site management, on behalf of corporate and business customers, registered a 55 percent increase from 2003 to 2005, and there was a boom in demand for Telkom’s managed data networking services.

Furthermore, since the company’s initial listing on the JSE Limited, Africa’s largest stock exchange, its share price has skyrocketed 284 percent. Now, as South Africa’s second-largest listed public company, its share price since 2003 has more than tripled in value, a numerical testament to the firm’s financial stability and track record in its growing market share. With a market capital of $12.3 billion as of March 2006, it’s no surprise that Telkom is considered to be the backbone for the convergence of the ICT sector.

But technology aside, the company also invests heavily in its workforce, highlighting the importance of building a strong skills base by financing training in technical, business, marketing and customer service. In the 2004/5 financial year, Telkom invested $56 million in South African ICT, the largest investment in the sector to date. Its ultimate goal, however, is to contribute to the development and upgrading of Africa’s communications capacity and play a key role in South Africa’s economic development. That’s why Telkom, a champion for the Broad-Based Black Empowerment Initiative (BEE), is considered to be the top black empowerment company in the country with the most diverse workforce in terms of gender, race and culture in the sector, as rated by Financial Mail and Empowerdex.

‘We have to look at opportunities in other parts of Africa to make a footprint for ourselves’

The BEE initiative, which incorporates historically displaced or disadvantaged individuals into the workforce through comprehensive training, helps South Africans create a platform for personal financial growth. “For us, BEE will ensure the success of the economy by bringing in more black players,” Mr. Molotsane confirms. Over the last few years, the percentage of black and female employees in leadership positions has surpassed 60 percent. As of March 2005, Telkom had 30 small, medium and micro black suppliers (SMMEs) and 49 large black-owned suppliers on its books.

Telkom even sponsors its own programs aimed at developing the capacity of small firms through training in tender procedures, business and marketing. The company is intrinsically involved in the growth of both the business and its personnel. Mr. Molotsane says, “We play a pivotal role as Telekom to ensure that the economy thrives, that we train our people. And we play a pivotal role as a facilitator of business networking and communications, and as a leader in transformation.”