Yes, with our help Eskom can shoot the lights out

IT seems like it never rains but it pours at Megawatt Park, South Africa’s electricity nerve centre. The suspension of Eskom CEO Tshediso Matona (after only six months in the job) and three of his senior colleagues is like rubbing salt in the wounds at the country’s troubled energy complex.

At the time of writing, the only known reason was a statement by Public Enterprises Minister Lynne Brown that she and the board have long been frustrated by the “inability of the executive to give proper information on operational issues”.

All we can and must do is wait and see how events unfold and, most importantly, insist that Eskom is returned to stability and operational efficiency and effectiveness soon.

An operationally efficient and wellled Eskom is indispensable to the country’s growth and development. South Africa requires a stable, competent and delivering Eskom for it to be a stable, competent and delivering developmental state, as it can and must be.

For reasons well known to most energy pundits and observers, the utility has been unable to cope with increasing demand for electricity.

There is no sector of the economy that is not affected by it. Eskom’s problems are, in the ultimate analysis, everyone’s problems. They are our problems.

To keep pointing fingers at the government without offering constructive inputs is unlikely to unlock the required step change in Eskom’s performance.

The utility is too important to be left to its own devices. That is why I strongly believe that a national collaborative effort involving all key actors from all parts of our economy and society should be rallied to find efficacious solutions to its seemingly endless, but not insurmountable, problems.

South Africa has what it takes to fix Eskom. What we need are bold and decisive steps to imbue it with worldclass, best-of-the-breed processes, systems, structures, leadership and culture.

This requires us, first, to acknowledge problems where they exist and commit to fixing them decisively.

Second, we need a correct diagnosis of the problems underpinned by a common and shared understanding of same. A correct diagnosis is key to laying the basis for the right interventions to unlock the right solutions.

Third, we need to marshal the required resources — in the broadest sense of the word — to resolve the problems. And, fourth, we need to identify the best leaders, managers, engineers, technicians, professionals and general staff who are fit for purpose to turn Eskom around on a sustained basis.

This is key to strengthening Eskom and repositioning it as a world-class electricity utility at the forefront of South Africa’s growth and development. It requires an appreciation of the impact it has on the economy and society that, in turn, should inform all decisions that are made on how best to resource it, structure it, position it and, above all, lead it.

What must be done to strengthen Eskom? Here is my plan.

First, electricity utilities require certain core competencies to execute their mandates. We need to ensure that Eskom has the right core competencies — at all levels — to keep the lights on and to have strategies for growth and expansion.

Eskom has an impeccable track record of training and developing some of the best engineers and grooming world-class leaders, such as Mick Davis, the former CEO of Xstrata. In this regard, a back-to-basics campaign within the context of new challenges in our new times is required.

Second, institutional efficacy and robustness is key to strengthening Eskom. Eskom should be given a respectable place under the sun as a pivotal institution that should play a key role in the country’s evolving energy mix to ensure energy security for generations.

It should have world-class technocrats at an operational level and world-class leaders at a strategic level who should be held accountable through the relevant governance processes.

Third, the business sector should proactively partner with the government to strengthen Eskom. Businesses need a strong Eskom. A well-run utility that is able to guarantee energy security will enable them to grow and expand operations in the medium to long term.

Let’s all do our part to strengthen Eskom, to grow and develop our economy and society alike for current and future generations.

Dlamini is the chairman of Massmart Holdings