TELKOM'S CONTRIBUTION IN ADDRESSING POVERTY AND UNDERDEVELOPMENT IN SOUTH AFRICA

INTRODUCTION

TELKOM DELEGATION

POVERTY AND UNDERDEVELOPMENT IN SOUTH AFRICA

1. Investment in our network

2. Black Economic Empowerment

3. Khulisa Shareholder Scheme

4. Centre for Learning

5. Employment Equity

6. Safety Health and Environment

7. Telkom Foundation

8. Special Products

9. Founder donor of Proudly South African

10. Alternative Strategies and approaches to create alternative career opportunities

BLACK ECONOMIC EMPOWERMENT

How does Telkom contribute ?

Shorter payment policy

Training (tender processes; business management)

905 current/potential suppliers through training during

2004.

BEE Milestones

First to initiate a capacity-building drive targeted specifically at SMMEs in the ICT industry

R 4.6 billion spent on BEE initiatives in the 2003/2004financial year.

Government's BEE scorecard met and exceeded

FINANCIAL MAIL TOP EMPOWERMENT COMPANIES APRIL

BEATING DTI'S BALANCED SCORED

DTI's Balanced scored

Telkom BEE evaluation model

Variance

Component

Weight

Component

Weight

 

Equity ownership

20%

Equity ownership

30%

Telkom =+ 10%

Management

10%

Management employment equity & people development

45%

Telkom =+ 5%

Empowerment equity

10%

 

Skills development

20%

Preferential procurement

20%

Preferential procurement

10%

Telkom = (10%)

Enterprise development

10%

Subcontracting & affirmative procurement

10%

N/A

Residuals: Determined by sector

10%

Social responsibility

5%

N/A

Total

100

Total

100%

 

 

TELKOM'S BEE SPEND

KHULISA SHARES

Creating a culture of wealth in the South African economy

Khulisa Shareholding in Comparison to Total issued Share Capital

Dividends

When Telkom listed in 4 March 2003,

Since the Company listed, shareholders have benefited from the company's profit through dividend payments:

CENTRE FOR LEARNING

People Development

Telkom invests in its employees

Learnerships and Graduate Internship Programmes

Call Centres

Project Management

Graduate Development Programme

Centre of Excellence (CoE) and School of Accounting

Bursary Schemes

EMPLOYMENT EQUITY

EE Targets 1 April 2000 to 21 March 2004

Recruitment (By Race) 1998 - 2004

YEAR

BLACK

WHITE

1998/99

47%

26%

1999/2000

75%

25%

2000/2001

82%

18%

2001/2002

81%

19%

2002/2003

81%

19%

2003/2004

83%

17%

  

Promotions 1998 - 2004

YEAR

BLACK

WHITE

1998/99

57%

43%

1999/2000

52%

48%

2000/2001

68%

32%

2001/2002

72%

28%

2002/2003

72%

28%

2003/2004

73%

27%

Promotions (by gender) 1998 - 2004

YEAR

FEMALE

MALE

1998/99

14%

86%

1999/2000

27%

73%

2000/2001

23%

77%

2001/2002

30%

70%

2002/2003

36%

64%

2003/2004

50%

50%

 

Targeted Development Initiatives

Persons with Disabilities

ALTERNATIVE STRATEGIES AND APPROACHES TO AVOID/MINIMISE JOB LOSSES AND CREATE ALTERNATIVE CAREER OPPORTUNITIES

Business Rationale

Agency for Career Opportunities

Fixed Line employee losses

 

2000

2001

2002

2003

2004

Opening Balance

61 237

49 128

43 758

39 444

35 361

Employee losses

14 354

7 097

5 535

4 453

3 106

Voluntary early retirement

4 090

119

1 161

377

224

Voluntary severance

4 186

1 994

1 760

1 531

985

Natural attrition

3 284

2 735

2 575

2 329

1 785

Involuntary

891

846

35

216

112

Outsourcing

1 903

1 403

4

 

 

Appointments

2 245

727

1 221

370

103

Successes with initial Company losses since October 2002

HIV AND AIDS

Telkom policies and programmes on HIV/AIDS within the workplace and the community

SHE: Telkom HIV/AIDS Strategy

SHE: HIV/AIDS VCT Roll out plan

TELKOM FOUNDATION

The aim of the Telkom Foundation

Focus areas

Annual Budget

With an annual spending of R40.5m the Foundation, through their projects run each year, contributes to the economic empowerment and alleviation of poverty in the country.

Telkom's other contributions to the country's development

Concluding remarks

Telkom looks forward to continue working with Parliament towards building an inclusive Information Society through our common efforts to use ICTs for a better life for all our people

THANK YOU