How Mteto Nyati and a hand-picked Eskom board pulled SA from the brink

In September 2022, South Africa's President Cyril Ramaphosa unexpectedly abandoned his international travel plans due to the country's severe energy crisis. The nation was grappling with Stage 6 load shedding, where parts of the country experienced daily blackouts lasting up to ten hours, crippling economic activities. Ramaphosa turned to Mteto Nyati, a mechanical engineer and former CEO of MTN SA and Altron, for assistance. Nyati, who did not seek the position, joined the Eskom board and led a remarkable turnaround.

Nyati, reflecting on his decision, emphasized his life purpose to "awaken the giant in others" and his belief that the challenges at Eskom were self-inflicted and solvable. He set three criteria for accepting the role: alignment with his life purpose, expertise to address Eskom's issues, and a clear understanding of the main problem. Nyati identified that 75% of Eskom's problems stemmed from just six power stations and nine systemic issues, which he and his board addressed.

The Eskom board established the Business Operations Performance Committee, which conducted an in-depth investigation and identified the key issues. Independent consultants monitored power station operations to ensure transparency and accountability. The board set ambitious targets for Eskom's Energy Availability Factor (EAF), which had been struggling to exceed 53% for most of 2023.

Nyati chose Bheki Nxumalo, an experienced leader from Eskom Rotek Industries, to head generation operations. Nxumalo, initially hesitant, accepted the role under specific conditions, including the authority to manage power station managers and the end of any negative rhetoric about Eskom staff.

Through these efforts, Nyati and his board successfully ended load shedding, improved Eskom's profitability, and addressed the root causes of the power crisis.