The question is whether government is prepared to trust the market. Underlying government thinking is a fundamental distrust of the private sector's ability to deliver. Radebe is adamant that government will further reduce its stake in Telkom. It is preparing to sell additional shares in the State-owned company to the public and will list it later this year on the JSE Securites Exchange SA and possibly on an international stock exchange. But I am satisfied that we will meet our timetable.
Analysts say government's focus on the listing is part of the problem.
But they lost the battle to more influential voices within government. Money from the sale of Telkom shares was the allure that carried the day. The result is a policy that meets government's short-term objectives such as reducing debt and limiting job losses. Whether government's strategy will attract international telecoms companies is a moot point. With the global telecoms market in free fall, it seems unlikely there will be a stampede of foreigners to invest in SA in the short term.