Eskom is an example South Africa should follow: Mteto Nyati
Eskom chairman Mteto Nyati says the end of load shedding and Eskom’s return to profit show what capable leadership can achieve in South Africa.
He added that the Government of National Unity (GNU) should focus on appointing ethical leaders, making it easy to do business, and restoring law and order in South Africa.
This is one of his messages during his address at the 2026 BizNews conference in Hermanus this week.
Nyati said that these three key issues would help South Africa prosper, much like it did for Eskom. He described the three focus areas as non-negotiable fundamentals for economic growth and stability.
“Appointing people who can’t run a spaza shop to run a city is not transformation. Cadre deployment has cost us dearly. Competent deployment will rescue us,” he said.
He stressed that leadership appointments must be fixed across the board. “When I say appoint ethical, capable leaders everywhere, I mean everywhere. We are talking state-owned enterprises, departments, schools, hospitals,” Nyati said.
He added that Eskom should not be seen as an exception, but rather as an example of what is possible when the right leadership is in place.
Central to Eskom’s recovery, Nyati highlighted the appointment of CEO Dan Marokane, describing him as “an ethical, experienced, and capable leader.”
He said leadership at the top sets the tone for the entire organisation. “Leadership matters. It starts there at the top. These are the people who are setting the tone. The appointment of these leaders has to be our priority,” he said.
Nyati pointed to tangible results to support his argument. “We have ended load shedding properly, for the first time in years,” he said, adding that this was not temporary relief but a sustained improvement.
He also noted that Eskom has posted a profit after a decade of bleeding red, marking a significant financial turnaround.
Some disagree
Placing Eskom’s progress in a broader context, Nyati said South Africa has recorded “four quarters of positive GDP growth.”
While he acknowledged that such growth would be routine in high-performing companies—referencing his time at Microsoft—he said it remains meaningful given the country’s recent challenges.
“These are not small wins. These are proof that capable leadership, discipline, and focus can turn the ship,” he said.
Nyati also pushed back against early criticism of Marokane, noting that some had questioned his appointment prematurely.
“Some were quick to dismiss him. Look at where we are now—no load shedding, black ink on our books, and a utility that is aligned to its core mission,” he said.
“It turns out that competence does inspire confidence. Results, even more so. Sometimes we have to let our work speak louder than the press release.”
However, not everyone agrees that Eskom’s financial recovery tells the full story. Energy expert Anton Eberhard has argued that the utility’s return to profit is heavily dependent on government support.
At the end of last year, Eskom reported a pre-tax profit of R23.9 billion, compared to a R25.5 billion loss the year before.
Eskom CFO Calib Cassim said the results reflected “tangible benefits of our recovery strategies.”
However, Eberhard argued Eskom would not have been profitable without a R64 billion government bailout, and noted that a large portion of the funds went towards servicing debt.
He also highlighted ongoing concerns, including audit issues, reliance on state support, and growing municipal debt. A further R80 billion bailout is planned as part of a broader R240 billion debt relief package.
Despite these criticisms, Nyati maintained that Eskom’s operational improvements are real and meaningful.
Nyati’s message is that South Africa can replicate this progress if it prioritises capable leadership, accountability, and a supportive business environment.
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