Cabinet commends Telkom's financial and operational performance
Stay ahead of procurement changes
Key Points
- Telkom's strong financial performance may lead to increased government funding for digital infrastructure projects, creating new tender opportunities.
- R593 million in procurement opportunities for SMMEs signals government's continued focus on supporting small businesses in ICT and related sectors.
- R559 million dividend to government may be reallocated to other departments, potentially increasing budgets for public sector projects.
- Telkom's growth in subscribers and digital services highlights expanding demand for ICT infrastructure, likely driving future tenders in connectivity and data services.
- Government's positive stance on Telkom suggests stability in SOE-related procurement, reducing risk of sudden policy shifts affecting tenders.
Cabinet has congratulated Telkom on its strong financial and operational performance for the financial year ending 31 March 2026.
The majority state-owned company supported 362 small, medium and micro enterprises through procurement opportunities worth R593 million and contributed to the creation of more than 74 000 jobs through its SMME development programme.
In addition, 1 524 unemployed young people were trained through ICT learnerships and the company surpassed two million subscribers.
This is according to Minister in the Presidency Khumbudzo Ntshavheni, who brief media on Friday on the outcomes of the Cabinet meeting.
“Government will receive approximately R559 million in dividend income (excluding dividends to other government-owned shareholder entities). This additional income will help support the state’s broader developmental priorities and public service delivery commitments,” said the Minister.
Earlier this week, Minister of Communications and Digital Technologies Solly Malatsi said the results reflect continued progress in the implementation of Telkom’s strategy and demonstrate the value of disciplined execution, operational efficiency and a sustained focus on growth areas.
The results highlight the growing importance of digital connectivity and data services in South Africa’s economy.
Telkom, a JSE-listed telecommunications company in which the South African government holds a 40.5% stake, remains a strategic asset in the country’s digital ecosystem and a significant contributor to economic activity. – SAnews.gov.za