In September 2022, President Cyril Ramaphosa abruptly cut short his UK visit and skipped the United Nations General Assembly in New York as South Africa faced an unprecedented energy crisis. The country was experiencing Stage 6 load shedding daily, with widespread power outages lasting up to 10 hours, severely impacting the economy. This dire situation prompted Ramaphosa to seek expert help to address Eskom's challenges.
Mteto Nyati, a seasoned mechanical engineer and former CEO of MTN SA and Altron, was approached by Ramaphosa to join the Eskom board. Nyati had not applied for the position but was hand-picked for his engineering and operational expertise. He was tasked with helping to steer Eskom out of its crisis. Nyati's appointment, alongside a new board led by Mpho Makwana, marked the beginning of a significant turnaround at Eskom.
Before accepting the offer, Nyati asked himself three critical questions. He considered whether the role aligned with his life purpose of awakening potential in others. He assessed whether his experience and expertise matched Eskom's challenges. Finally, he evaluated the nature of the challenge, identifying load shedding as a symptom of deeper issues related to leadership incompetence. Convinced that Eskom's problems were solvable and self-inflicted, Nyati agreed to take on the role.
Nyati and the Eskom board focused on addressing the utility's internal issues, particularly the lack of power station maintenance. He believed that Eskom's problems were within its control, unlike those faced by state-owned airline SAA, which were influenced by external factors like oil prices and exchange rates. This understanding guided the board's strategy to drive recovery.
Under Nyati's leadership, Eskom achieved a remarkable turnaround. More than two years after his appointment, load shedding has ended, and the power utility has become profitable. Eskom now faces a new challenge: it has surplus electricity that it is struggling to sell. This transformation is a testament to the effectiveness of Nyati's leadership philosophy, which has been successfully applied in the private sector.
Nyati's leadership approach, though widely tested, was new to a state-owned entity like Eskom. His experience at Afrox, Nampak, and as a manufacturing consultant provided a strong foundation for addressing Eskom's operational challenges. The board's hand-picked members, each selected for their expertise, worked together to drive Eskom's recovery.
Nyati's tenure as Eskom board chair was initially set to end in October but has been extended for three years. His decision to accept the role and his subsequent success in turning around Eskom demonstrate his commitment to solving complex problems and his confidence in his leadership philosophy. The extension of his tenure will allow him to continue building on the progress made.
Key points
- Mteto Nyati was hand-picked by President Cyril Ramaphosa to join the Eskom board in October 2022.
- Eskom has ended load shedding and become profitable under Nyati's leadership.
- Nyati's leadership philosophy, tested in the private sector, has been successfully applied to Eskom.
