The Leadership Trio Behind Eskom’s Turnaround: A Deep Dive into Strategy and Results
An analysis of the strategic appointments and operational shifts that have stabilized South Africa’s power utility, moving it from crisis toward a fragile recovery.
In the complex narrative of South Africa’s energy crisis, the period from 2023 to 2025 marks a significant inflection point. While the debate continues over the precise contribution of private generation versus utility improvements, a consensus is emerging among energy analysts: Eskom’s operational and financial health has markedly improved. At the center of this shift are three key figures—CEO Dan Marokane, Generation Head Bheki Nxumalo, and Chairman Mteto Nyati—whose combined expertise and unconventional approach are credited with steering the utility back from the brink.
A Foundation of Technical and Managerial Expertise
The turnaround strategy was built on a foundation of deep, internal knowledge. Bheki Nxumalo, appointed Generation Head in April 2023, brought two decades of sector experience and 15 years within Eskom itself. His immediate mandate was the execution of the Generation Operational Recovery Plan, a task that required navigating historically low morale. Nxumalo’s approach prioritized long-term stability over short-term optics, intensifying planned maintenance at the most problematic power stations. This initially led to a dip in the Energy Availability Factor (EAF), a move characterized as “short-term pain for long-term gain.”
The results of this disciplined maintenance regime have since materialized. After an initial decrease, the EAF climbed from 54.9% in his first year to 61.2% in the following financial year, and has trended above 63% into 2025, with weekly figures occasionally exceeding 70%. This consistent upward trajectory points to improved plant reliability, a core metric for any generation fleet.
Unconventional Governance: A Hands-On Board
Chairman Mteto Nyati, a veteran of IBM, Microsoft, and MTN, introduced an unconventional, hands-on governance model. Appointed to the board in 2022 and as Chairman in October 2023, Nyati recognized that Eskom’s extraordinary challenges demanded a departure from traditional non-executive oversight. He and fellow board members engaged directly with power station workers to identify systemic bottlenecks, a move that shifted strategy from the boardroom to the boiler room.
This ground-level intelligence led to the targeted prioritization of six critical stations: Duvha, Kendal, Majuba, Kusile, Matla, and Tutuka. Crucially, Nyati empowered Nxumalo with the operational freedom to move station managers without internal interference, breaking down silos that had historically hampered performance. Furthermore, Nyati leveraged his influence to address a perennial frustration: procurement red tape. His direct complaint about localization laws inserting costly middlemen prompted Finance Minister Enoch Godongwana to grant Eskom a three-year exemption, allowing direct procurement from original equipment manufacturers and speeding up critical repairs.
Steadying the Helm: The CEO’s Focus on Stability
Completing the leadership triad, CEO Dan Marokane brought a unique blend of insider knowledge and proven integrity. Appointed in early 2024 after a prolonged search, Marokane was a known quantity. He had previously served as Eskom’s Group Capital Executive until his 2015 ousting—an action later found by the Zondo Commission to be part of a state capture plot. His subsequent vindication and his background as a chemical and petroleum engineer made him a credible choice for a role often deemed South Africa’s toughest job.
Marokane’s tenure has been defined by a focus on operational and financial discipline. Under his leadership, Eskom reported its first annual profit in eight years for the 2025 financial year, while overall liquidity improved significantly. Chairman Nyati initially acted as the public face for Marokane’s first 100 days, allowing the CEO to immerse himself in the company’s complexities without immediate public pressure. This calculated onboarding underscored the strategic, long-game approach adopted by the trio.
Analysis: The “So What” of the Eskom Recovery
The significance of this leadership alignment extends beyond improved metrics. It represents a case study in addressing a systemic state-owned enterprise crisis. First, it highlights the value of empowering technical experts with operational autonomy, shielding them from internal politics. Second, it demonstrates how a pragmatic board can actively remove external obstacles, such as procurement barriers, that cripple operational efficiency. Third, it shows that credible leadership, with both engineering acumen and moral standing, is critical for rebuilding internal and external trust.
However, analysts caution that the recovery remains fragile. The improved EAF is a vital but single metric; the sustainability of these gains depends on continued investment, the resolution of coal supply chain issues, and the successful execution of the generation fleet’s long-term maintenance strategy. Furthermore, the growing contribution of private power generation has provided a crucial buffer, allowing Eskom the space to execute its recovery plan without the grid collapsing.
In conclusion, the combined effect of Nxumalo’s technical execution, Nyati’s barrier-breaking governance, and Marokane’s steady financial and operational leadership has created a foundation for stability not seen at Eskom in over a decade. Their coordinated effort suggests that turning around a behemoth like Eskom requires not just one savior, but a complementary team willing to challenge both internal conventions and external constraints. The true test will be whether this foundation can support the even larger transformations required for South Africa’s energy future.
Primary Source: This analysis is based on reporting from MyBroadband.
