The successful listing of Vodacom on the Johannesburg Stock Exchange has been greeted with rage by the South African left. The entire operation was nearly scuppered at the last moment after a challenge in the courts. The Sunday Times splashed the story across its front page on the 17th of May, with the headline: "The R22 Billion Debacle"
"South Africa's reputation as a business-friendly economy is in tatters, thanks to a bid to block a R22.5-billion foreign investment - and the biggest listing on the stock exchange this year. The Independent Communications Authority of SA (Icasa) and trade union federation Cosatu will this morning launch an urgent interdict to stop the listing of Vodacom, scheduled for tomorrow."
The entire issue was extraordinary.
The listing of Vodacom, which some analysts have valued at more than R70bn, was the final part of a plan by fixed-line operator Telkom to get rid of its 50% stake in the country's biggest mobile operator. Under the plan, Vodafone - the UK based multinational - agreed to buy the 15% stake from Telkom, giving it a controlling 65% holding. Telkom will then distribute its remaining 35% to shareholders.
Cosatu, which regards Zuma as a political ally, has long opposed the deal on the grounds that it threatens jobs and cedes control of a major South African company to a foreign firm.
The Independent Communications Authority of South Africa (Icasa), the industry watchdog, said in April the deal did not need its approval but suddenly changed its mind on Friday, under intense pressure from President Zuma's closest allies in Cosatu and the SACP. Cosatu said it opposed the deal on the grounds that it threatens jobs and cedes control of a major South African company to a foreign firm.