Resignations in both the public and private sectors of SA's telecommunications space continue to fuel concerns about who will be left to lead the industry.
However, this may be a sign of market maturity, rather than instability, say industry insiders.
Mobile operator Vodacom yesterday announced its chief officer for corporate affairs, Bob Collymore, has resigned to take over as CEO of Safaricom, Kenya's leading mobile operator. Also leaving Vodacom is Willem Swart, chief officer of international business.
But the bleeding doesn't stop there for the private sector. MTN is looking for someone to take over at the helm, after CEO Phuthuma Nhleko quit in March. Nhleko's contract was set to expire in November, but he will stay on until next March, while the group - Africa's largest cellular company - looks for another head honcho.
In addition, Telkom is still reeling from the loss of CFO Peter Nelson, as well as CEO Reuben September. Nelson will stay on at Telkom until November, but September's resignation is immediate.
Adding to that loss are 134 Telkom managers, who opted for voluntary early retirement packages.
Among those who went for the package are chief of strategy Naas Fourie, MD of Telkom International Thami Msimango, head of procurement Stafford Augustine, and group executive for network provisioning Marius Mostert.
Meanwhile, state-owned entity Sentech lost its CEO, Sebiletso Mokone-Matabane, in March. Sentech's chief operations officer Beverly Ngwenya was appointed acting CEO at the embattled state company in April.
Now reports have surfaced that a trio of Sentech executives will instead lead the company, including acting chief operating officer Dingane Dube, GM for operations and maintenance Maxwell Nonge, and GM for financial management Jayselan Coopsamy.
Maturity requirement
BMI-TechKnowledge MD Denis Smit believes these resignations are a sign of a maturing industry under tremendous pressure and possibly "post-growth".
“Different types of managers are needed to run mature businesses and maybe the changes are not a bad thing, actually,” he comments.
Frost & Sullivan ICT industry analyst Spiwe Chireka agrees that the situation is indicative of a cutthroat environment, not only between the telcos themselves, but also among the industry's talent.
Chireka explains that the industry is not necessarily losing its talent, but going through an incestuous headhunting phase. She argues that, although resignations are on the increase, the industry's talent will be contained through poaching exercises.
This positivity may not extend to the public sector, argues WWW Strategy MD Steven Ambrose.
The resignation at the government parastatals, such as Sentech and Telkom, have a lot to do with ineffective and heavy-handed state interference, and lack of clear policy directives, as well as the flouting of good corporate governance, he says.
“Skilled leaders in high demand can find far greener pastures in the private sector, which is highly detrimental to the future of these parastatals, and their ability to meet policy objectives, such as those outlined on the recent broadband policy.”
New leaders
There is a general lack of highly-qualified and experienced executives in the telecommunication industry, maintains Ambrose.
“When you combine that with the explosive growth of telecommunications in Africa, you get a situation like this, where there is constant movement of these people among the players on the continent.
“In many ways it is actually good news, as this movement makes way for new young and dynamic leaders to grow into leadership positions.
“The challenge for Vodacom and other players in SA is to ensure that at all levels, especially the executive level, effective succession plans are in place, and that the company encourages and supports its new and emerging talent,” concludes Ambrose.
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