Author: Gugu Lourie

MTN retain its position as South Africa’s most valuable brand in 2017, valued at R40.8 billion ahead of its rival Vodacom, which came in second and is valued at R25.3 billion and Standard Bank in the third position. Brand Finance has published a list of the top 50 most valuable brands in the country for 2017. The project is a joint effort between Brand South Africa, Brand Finance, and Brand Africa. However, according to the report, even the top brands have seen a decrease in value. Even though MTN was again number one, the telecoms giant has seen over R13-billion…

There is a consensus that Information and Communication Technologies (ICTs) hold great promise for development by connecting people to more accurate and up-to-date sources of information and knowledge. But in Africa ICTs have been inequitably distributed and as a result, several people are unable to enjoy the benefits of the digital economy. However, open access fibre infrastructure deployment has the potential to bridge the digital divide. The use of open access fibre infrastructure is more vital in South Africa, where the digital divide remains a stark reality, despite more than half of all adults in the country now having Internet…

South Africa’s Telkom seems to be on everyone’s lips these days. However, for the first time in many years, the conversation is positive. The stock has risen 264% in past year, giving the company a R34 billion market value. Its main shareholder, the South African Government, might sell part or all of its 39.3% shareholding in the Telco that generated R3.9 billion in profit in the 2017 financial year. The charts below show how Telkom shares have performed in recent years The Telco rewarded shareholders with an annual dividend of 422 cents per share in 2017. At 31 March 2017,…

Telkom, South Africa’s largest fixed-line telephone group, is moving ahead with the creation of a new entity to complement its new business structure. In April 2017, Telkom formed a wholly owned subsidiary, Gyro, to manage its masts and towers, property development and property management services. However, the Telco didn’t disclose how will this company be built. The wait is over, the company led by Sipho Maseko revealed in its latest annual report plans to beef up Gyro. According to the report, Telkom and Gyro have entered into a sale of business for shares transaction in terms of which Telkom is…

Isaac Mophatlane, the CEO of BCX who left the technology company in May 2017, received R11.7 million in total remuneration, according to Telkom’s latest annual report. As part of the package, Mophatlane’s remuneration was R5.8 million and received R5.3 million in incentive bonus plus R520 000 in fringe and other benefits. According to the Telkom report, he was not granted any long-term incentives such as shares in the telco. The departure of Mophatlane was condemned by South Africa’s Black Business Council (BBC). At the time, in a statement, BBC said it “believes (Mophatlane) was forced out”. Mophatlane and his late…

Telkom boss Sipho Maseko was paid R25.9 million in the 2017 financial year as South Africa’s largest fixed-line telephone group reported a 3.9 billion in profit versus R2.3 billion in the same period last year. As part of his total remuneration, Maseko’s guaranteed package was R7.4 million and was also rewarded with R8.8 million in short-term incentives and also gained R9.6 million in long term incentives or vested shares). While Deon Fredericks, Telkom’s chief financial officer, was paid R13.5 million in total remuneration, which consists of a R5.3 million guaranteed package and R4.3 million in short-term incentives plus R3.8 million…

South Africa’s political uncertainty is slowing down mergers & acquisitions activity in the rest of the continent after inbound deal volumes in the first quarter of 2017 dropped 45%. This is no surprise because almost half the continent’s M&A activity flows through South Africa. South Africa has entered recession for the first time in eight years, piling pressure on a government facing corruption allegations and credit downgrades. For more read: South Africa slips into recession, heaping pressure on Zuma Political instability, high unemployment and credit ratings downgrades have dented business and consumer confidence in South Africa. “Further, almost half the…

The internet economy will reach $4.2 trillion in the G20 countries, including South Africa as a member state. If it were a national economy, the internet economy would rank in the world’s top five, behind only the US, China, Japan, and India, and ahead of Germany, according to The Connected Word: The Internet Economy in the G-20 Report, published recently. Despite internet economy getting bigger, the economic impact of internet economy is not experienced by all South Africans. But Reshaad Sha, chief strategy officer and executive director at Dark Fibre Africa (DFA), says the internet access is becoming synonymous with…

The battle for control of the bank accounts of African consumers through mobile money – essentially the use of mobile phones to access financial services – is about to get competitive. The mobile money industry has now reached a major milestone: more than half a billion mobile money accounts were registered as of the end of 2016, with more than 170 million active accounts around the globe, according to GSMA. The association said more than 40% of the adult population in Kenya, Tanzania, Zimbabwe, Ghana, Uganda, Gabon, Paraguay, and Namibia are using the mobile money on an active basis (90-day).…

OLX – the world’s leading classifieds platform focused on emerging markets, both mobile and online – has reached more than 330 million active users worldwide, compared to 240 million in 2015, Naspers’ latest integrated report shows. The classified company has garnered more than 60 million monthly new net listings on its platform. Furthermore, OLX has recorded 75 million users that make use of its mobile apps monthly on average in 40 countries. Co-founded in Brazil in 2006 by Fabrice Grinda and Alec Oxenford, OLX became part of the Naspers – Africa’s largest tech and media firm Naspers – family in…