Telkom CEO Sipho Maseko leaving after 9 years at end of June 2022.

by Thinus Ferreira

Telkom CEO Sipho Maseko is leaving after 9 years and will exit the telecom on 30 June 2022, Telkom announced on Friday morning that is looking for a replacement.

"I feel now is the right time for me to step aside and make way for a new leader who will take Telkom to even greater heights," Sipho Maseko said in a quote provided to TVwithThinus.

"I will stay on until June 2022 to ensure a smooth transition for my successor. I am most thankful to my colleagues across our country, for trusting me to lead Telkom, and for supporting me throughout this journey of transition."

Telkom in a statement said that "The process to appoint a successor is well under way and a group CEO-designate will be announced in the not-too-distant future."

"Sipho would, for the remainder of his tenure, ensure the incoming group CEO-designate’s orderly transition into the role."

Sipho Maseko joined the troubled parastatal on 1 April 2013.

Telkom has since then gone through dramatic restructuring, resized through the retrenchment of thousands of workers and has started to pivot to offering internet-era services like its TelkomONE video streaming service, a Telkom Music app and an expanding Telkom Mobile offering as Telkom is experiencing a dramatic decline in fixed-landline copper line customers and a move towards offering fibre-connected services.  

"During his tenure, Sipho Maseko turned the business around and evolved it from a traditional fixed business to a portfolio of businesses, which comprises the mobile, IT and wholesale infrastructure businesses, and the masts and towers portfolio," says Telkom in its statement.

"Under his leadership, the group has had many remarkable strategic achievements in its execution of its broadband-led strategy, which are reflected in the group's current healthy position."

"The mobile business grew to become the third-largest mobile business in South Africa with more than 15 million customers and generating R20 billion in revenue. The fibre footprint was expanded and the fixed customer base was migrated to new technologies (fibre and LTE). The number of homes connected with fibre now exceeds the number of homes connected with copper."

Here is Sipho Maseko's exit letter to staffers:

Dear colleagues

Today, 8 years, 3 months and 23 days ago, I entered my office on the 24th floor in Telkom Towers North in Pretoria for the first time. I remember it like it was yesterday. I remember the anxiety and the unfamiliarity that comes from being the new kid on the block. Mostly, though, I remember feeling excited and determined; determined to do the job and do it right, and determined to build a new, better Telkom. This has always been of utmost importance to me: always leave a place better than you found it.

My moment of leaving is now taking shape. I have informed the Board that I will be stepping down as Group CEO of Telkom Group on 31 March 2022. My final day of service will be 30 June 2022, in other words after the annual results, and on completion of my notice period.

The right time to leave

As my Telkom journey enters the home straight, the foremost question on my mind is this: is Telkom a better place?

Eight years ago, the mission was very clear: we must save the company, get it to be sustainable and able to hold its own in the future relative to its peers. I’m broadly satisfied that this mandate has been fulfilled. Today, Telkom is a stable company. We have de-risked our business, we have a very clear strategy for each of the business units. We are on a clear and definite path to unlock value for our shareholders, indeed all our stakeholders. It wasn’t an easy ride, but our perseverance has paid off. I remain very optimistic and confident about our strategy and the future of the company.

So, this is the right time for me to step aside and make way for a new leader able to take Telkom to even greater heights. The Board will soon make a separate announcement in this regard.

We built Telkom together

Telkom is by far the most exciting, complex, challenging and fascinating “project” I’ve ever been part of. In fact, I quickly fell in love with the firm. Its history, role in South Africa, achievements, challenges and possibilities made me decide to spend the better part of my adult career here.

I am so proud and so very thankful for many things. I can’t begin to list them all in this communiqué. But let me say this: I am most thankful to you, my colleagues across our country, for trusting me to lead Telkom, and for supporting me throughout this journey; a journey that often took us to unexplored places.

Not only does Telkom have talented people, the company is blessed with people who are willing to make sacrifices. And over the years, people have sacrificed. For this, past and present employees have my thanks and utmost respect. I know this attitude will continue to serve the firm well as the future unfolds. Long may Telkom’s prosperity last!

Looking ahead

For the next eight months until our financial year-end, I will give my all to ensure we meet, or even exceed, our financial and non-financial objectives – one last push to ensure Telkom continues to evolve into a better place.

We will hopefully be able to engage and meet up over the next eight months to reflect on where we came from, and where Telkom is heading.

I thank every one of you.

Sipho