South Africa Aims to Replicate Telkom's Success Through Real Estate Ventures -

South Africa seeks to replicate the success of engaging private partners in the telecommunications company Telkom by creating a new state-owned entity tasked with managing its R155 billion ($9.4 billion) property portfolio.

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The establishment of the South African National Property Company, which will oversee 88,000 buildings and 5 million hectares (12.4 million acres) of land, was revealed by President Cyril Ramaphosa during his state-of-the-nation address in February.

“We are confident that by engaging the private sector—via private ownership and partnerships—we can see the rise of a new Telkom, which we envision could eventually be publicly listed and yield substantial dividends,” stated Dean Macpherson, the minister of public works and infrastructure, at a Foreign Correspondents’ Association of Southern Africa event in Johannesburg on Friday.

Telkom was partially privatized in 2003 through an initial public offering on the Johannesburg Stock Exchange, while the government held onto a 41% share.

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In a recent earnings report, the telecommunications company indicated it expects basic earnings per share from continuing operations to rise by 45% to 55%.

Macpherson noted that his department intends to commence the sale of at least 801 residential properties in this financial year.