02 Oct When Leadership Wins: How Mteto Nyati Steered Eskom to Recovery

If you were at Innovation City’s Business Ink Tankevent, you would have had the privilege of hearing firsthand how Eskom was pulled back from the brink of collapse to a state of sustained recovery.

Mteto Nyati, Eskom’s Chairman of the Board, shared this remarkable story, drawing on his extensive background in leading major organisations such as MTN South Africa, Microsoft South Africa, and Altron. Known for his ability to transform struggling companies, Nyati’s leadership at Eskom has been no different, focusing on strategic improvements that have gradually stabilised the utility.

In a candid conversation in front of a very captivated audience, Nyati spoke about the strategic shifts, leadership decisions, and personal philosophies that have helped Eskom turn the tide during one of South Africa’s most challenging energy crises.

Nyati, appointed at a time when Eskom was facing unprecedented levels of load-shedding, reflected on how he approached his role, drawing on lessons from his upbringing and early career. His mother, who ran a successful trading store, taught him about tough love and the value of integrity – principles that now shape his leadership style. He emphasised that Eskom’s real problem wasn’t just its ageing infrastructure, but rather the absence of effective leadership and accountability.

Tough Love and Leadership Transformation

One of Nyati’s key points during the discussion was his belief in tough love, a value instilled by his parents. “At Eskom today, I often talk about tough love – something that was missing (there),” he said. “We had leaders that were not leading and managers that were not managing. It goes back to parents who weren’t parenting. You can love, but you can be tough.”

This philosophy guided Nyati’s approach to managing Eskom’s complex challenges. Initially, he was hesitant when the President approached him to take over at Eskom, believing that the existing leadership under Andre De Ruyter was on the right track and simply needed more robust support to make meaningful progress. However, after discussing the matter with his wife (something he does at all important junctures of his life) and considering the weight of the situation, Nyati decided to step into the role. Once at the helm, he began implementing the substantial changes necessary to address Eskom’s deep-rooted issues and set the utility on a path to recovery.

Nyati and his team identified that the root cause of Eskom’s troubles wasn’t just outdated machinery, but poor maintenance and lack of proper leadership. Instead of rushing to retire and replace ageing fleets or privatise operations, Nyati focused on maintaining existing assets. “If you look after machines properly, they will serve a long time,” he explained. Eskom shifted its strategy to focus on reliability, investing in maintenance, and building direct relationships with machine manufacturers to ensure the power stations could operate more efficiently.

Rebuilding Eskom’s Culture: A People-Centric Approach

Nyati’s leadership philosophy extends beyond machinery. He believes in the potential of people and the importance of leadership in motivating teams. He recalled how he gathered power station GMs for a workshop to gain insights into the operational challenges on the ground. It was during these sessions that he realised the magnitude of the leadership vacuum at Eskom. Nyati’s solution was not to overhaul the workforce but to lead them differently, driving a cultural shift that empowered individuals to take ownership of their work.

“The takeaway is the fact that the people that we work with – they will rise to the level of our expectations of them,” Nyati said. “If you think they are stupid, they will never disappoint you. It’s about how you work, stretch, and motivate them.”

Also present on the panel was Lincoln Mali, Group Chief Executive Officer at the ATM Solutions Group, who has worked closely with Nyati. He echoed Nyati’s sentiments, stating that Eskom’s recent improvements were largely due to the same workforce – now led with a clear vision and purpose. “Eskom is really most of the same people. They’re just led differently now,” Mali emphasised.

A Bold Strategy to End Load-Shedding

Nyati’s leadership has seen Eskom embark on a bold two-year plan to stabilise its operations. Despite facing the worst load-shedding in the country’s history, Nyati’s strategy involved taking immediate steps to repair and maintain the existing infrastructure, rather than waiting for new or privatised systems to come online. As a result, Eskom is now 18 months into this turnaround, with Nyati confidently stating that once the two-year plan is completed, “we are not going to have load-shedding again.”

Nyati’s leadership at Eskom has been marked by resilience and an unwavering commitment to transforming not just the infrastructure but also the culture of the organisation. His story is a testament to how strategic leadership and a focus on people can drive significant change, even in the face of seemingly insurmountable challenges.

To learn more about Nyati’s remarkable life story and leadership style, you can read his book, Betting on A Darkie: Lifting the Corporate Game. In this deeply personal account, Mali shares his experiences, challenges, and insights on leadership, reflecting on his journey from humble beginnings to becoming a prominent business leader. The book delves into themes of resilience, transformation, and the importance of leading with purpose and integrity.

Sandra Buckingham is Innovation City’s CMO and in-house Business Journalist.