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ISSUE NO 78 IN SEARCH OF THE BUSINESS MODEL

TELKOM STRIKES DEAL WITH HAWKERS ON PAYPHONES

Telkom and the African Council of Hawkers and Informal Business (ACHIB) today signed a unique partnership agreement that will see ACHIB members throughout South Africa managing payphones in their spaza shops and salons, and distributing Telkom Phonecards and PrepaidFone vouchers.

ACHIB has already indicated that it will purchase R3 million worth of payphone products for initial distribution by at least 12000 of its 110000 members, and Telkom will install payphones in spaza shops and salons across the country.

"This partnership is a winning combination," said Telkom’s Managing Executive for Payphones, Mike Mlengana.

"In exchange for managing and taking ownership of the payphones Telkom will be installing, ACHIB members will earn commission on the call revenue generated, based on a commission structure both parties have agreed on. Telkom will also be supplying payphone products to ACHIB and its distributors at a 15% discount," he said.

Mlengana explained that ACHIB had proactively approached Telkom with ideas for a potential partnership last year, and that the resulting agreement was one of the most creative yet devised between a corporate organisation and informal business grouping.

He added that the partnership was indicative of how far Telkom had come in terms of its commitment to form sustainable and mutually beneficial business partnerships with emerging entrepreneurs.

"In the last financial year, Telkom spent R1,4 billion with black small, medium and micro enterprises, and larger black suppliers that have at least 50.1% black ownership. Our partnership with ACHIB has huge economic potential, both for the small business sector and for meaningful black economic empowerment," said Mlengana.

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