Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

Telkom SA appoints new CEO from within

Article Image
Telkom South Africa has announced that its next CEO will come from within its ranks, with Serame Taukobong tapped to take over when Group CEO Sipho Maseko steps down next year.

Taukobong is currently the CEO of Telkom Consumer Business, a unit that is performing well, and will take over as Group CEO Designate on October 1, 2021.

Taukobong and Maseko will work together "to ensure orderly transition" until Maseko's official exit on June 30, 2022. During this transition period, Taukobong will continue to have oversight of the Telkom Consumer Business.

Telkom Chairperson, Sello Moloko, made the announcement on Wednesday saying the organization was pleased that its extensive search process confirmed the caliber of Telkom's people.

"Serame is a seasoned executive, with deep experience in the ITC sector in South African and the continent," Moloko said.

Growth engine

Taukobong joined Telkom in June 2018 and previously spent around 10 years at MTN where he held several senior roles including COO and later CEO of MTN Ghana.

Under his leadership, Telkom's mobile customer base grew threefold to become the third-largest mobile business in South Africa, and revenue almost doubled to R20 billion (US$1.4 billion) within a three-year period.

Taukobong's Consumer unit continued its strong growth in the quarter ended June 30, 2021, according to a group trading update also released on Wednesday.

Telkom's Consumer business revenue grew 8.3%, to R6.5 billion ($457 million), for the quarter, driven by growth in mobile revenue. This was partially offset by the decline in fixed-line business and ongoing pressure on the SME segment.

Talking about his new role, Taukobong said that having worked under Maseko's leadership for three years he knows he will be taking over a solid business with a capable and committed team.

"The team and I are conscious of the challenges that lie ahead and are committed to attracting and retaining the best people, winning in the market place and delivering value for shareholders," he added.

Mobile momentum

Telkom's mobile service revenue grew 13% for the quarter, to R4.4 billion ($311 million); it now has 16.1 million active customers, a 36.3% uptick from last year.

Telkom South Africa's mobile broadband customers now make up 65.6% of active customers, as the operator saw growth of 30.9% in mobile broadband customers, to 10.5 million, for the first quarter of the new financial year.

Outgoing CEO Maseko said that despite the South African economy gradually opening, "customers remain under severe financial pressure due to loss of jobs, reduced income and liquidation of small businesses."

"We witnessed a continuing change in consumer behavior in the postpaid consumer market. As customers seek to manage their spend, we saw a reluctance to renew postpaid contracts with some customers opting to switch from postpaid to prepaid propositions," Maseko added.

Telkom South Africa's Group CEO, Sipho Maseko, will step down in June 2022.
Telkom South Africa's Group CEO, Sipho Maseko, will step down in June 2022.

The postpaid customer base was relatively flat compared to the prior year at 2.6 million while prepaid customers grew by 46.8% to 13.5 million.

However, prepaid average revenue per user (ARPU) declined by 15.3% to R68 ($4.76) compared to R80 ($5.60) a year ago, due to the significant slowdown in working from home and online schooling. Postpaid ARPU was higher at R221 ($15.48), compared to R212 ($14.85) in the same quarter of 2020.

Telkom SA's mobile data revenue grew by 11.1% to R3.2 billion ($225 million), supported by the strong growth in mobile broadband.

Group revenue for the quarter was up 3.5% YoY to R10.6 billion ($744 million) mainly driven by the mobile business.

Related posts:

*Top image is of Serame Taukobong who will take over as Telkom SA Group CEO in June 2022. (Source: Telkom)

Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Over 5K African SMBs graduate from Google's Hustle Academy

Around 5,300 small and midsized businesses (SMBs) from Kenya, Nigeria and South Africa have graduated from the Google Hustle Academy.

Story

Orange launches super-app 'Max it' for Africa

Telecoms operator Orange has launched its own super-app, called Max it, in five African countries with plans to roll it out across its operations in Africa and the Middle East.

More Innovation hub

Latest video

More videos

Industry announcements

More Industry announcements

Sponsored video

More videos

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Partner perspectives

All Partner Perspectives

Guest Perspectives

Story

Omdia View: September 2023

By Omdia Analysts

Highlights in September 2023 in the Middle East and Africa included more 5G spectrum licenses, vendor and operator strategies, and partnerships – that and more in this month's Omdia View.

Story

Omdia View: August 2023

By Omdia Analysts

Highlights in August 2023 in the Middle East and Africa included a commercial 5G launch from Ethio Telecom and the signing of a virtual wheeling agreement between Vodacom South Africa and Eskom – that and more in this month's Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id I-0000192