By Monique Vanek and Bonolo Mokonoto.
South Africa seeks to replicate success achieved by bringing private partners into telecommunications firm Telkom with the creation of a new state company that will manage its R155 billion ($9.4 billion) property portfolio.
The establishment of South African National Property Company, which will oversee 88 000 buildings and 5 million hectares (12.4 million acres) of land, was announced by President Cyril Ramaphosa in his state-of-the-nation address in February.
“We think by bringing in the private sector, by bringing in private-sector ownership and private-sector partnership, we can see a new Telkom emerge and that we envisage one day could also be listed as well and generate substantial dividends,” Dean Macpherson, the minister of public works and infrastructure, said at a Foreign Correspondents’ Association of Southern Africa event in Johannesburg on Friday.
Telkom was partially privatised in 2003 via an initial public offering on the Johannesburg Stock Exchange, with the government retaining a 41% stake.
In a recent earnings update, the telecommunications company said it expects basic earnings per share from continuing operations to rise 45% to 55%.
Macpherson said his department plans to start disposing of at least 801 mostly residential properties in the current financial year.
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