The Department of Public Enterprise will tomorrow unveil a multimillion-rand educational campaign on the merits of share ownership ahead of the planned listing of state-owned telecommunications operator Telkom.
The campaign is to "teach the fundamentals of share ownership, investment and savings", the department says, in order to "encourage and enable all South Africans to participate in the economic development and success of our country".
The campaign has long been on the cards as one of government`s objectives with the listing is to see a broad uptake of shares by small investors, preferably previously disadvantaged individuals from rural areas. However, it has often been postponed as the date of the listing was pushed back.
The listing, a local retail offering and a simultaneous institutional offer on the New York Stock Exchange, is now expected to go ahead around February next year. It is not yet clear what percentage of the company will be made available.
Telkom announced this week that 2% of its holding will be allocated to the Diabo Share Trust, created to benefit Telkom employees. Management partner Telekom Malaysia and American operator SBC hold the balance of the company.
Although the education campaign is aimed squarely at the Telkom listing, it will not be very specific on the company, rather focusing on what share ownership means.
The campaign is expected to run over eight weeks and information will be provided in all 11 official languages. The Post Office and Standard Bank are to distribute related marketing material. Although details are not yet available, both institutions are expected to be involved in registration for shares prior to the listing.
The education campaign is being launched as labour movement Cosatu winds up a two-day national strike against the privatisation of state assets.
"Government must stop privatising basic services and national infrastructure at once," Cosatu said in its strike memorandum. It identifies telecommunications as such a basic service and believes leaving it in private hands will price it out of reach of the majority of citizens, deny government the leverage to effect fundamental reform of the economy and cause continued massive job losses.
Telkom has shed 22 745 jobs since 1999 and expects to continue reducing its workforce as it achieves greater efficiency and technology makes more positions redundant.
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