New Eskom CEO Dan Marokane Takes Helm Amidst Deepening Energy Crisis

Dan Marokane faces the greatest challenge of his professional career as he assumes the role of Chief Executive Officer at Eskom, South Africa's main electricity public utility, this Friday. As the CEO he inherits an organization that is currently beleaguered by widespread allegations of coal theft, sabotage, and an enormous financial and operational quandary.

Eskom, a key player in South Africa's economic engine, is currently crippled with a power crisis that subjects the nation to up to 10 hours of load-shedding on a daily basis. This chronic reliability issue affects all facets of everyday life including homes, businesses, and essential services like hospitals.

This comes at a critical time as the country prepares for national elections in May. Eskom's success or failure in resolving these energy issues may very well dictate the economic trajectory of South Africa going forward. Eskom's board chair, Mteto Nyati, emphasized the need for both immediate remedial actions and long-term strategic restructuring to make Eskom a future-fit organization.

Marokane is no stranger to Eskom, having served as a senior executive in the company until 2015. His academic and professional background equips him with the technical expertise and leadership qualities that many, including Nyati, believe are crucial for the task at hand. Nevertheless, skeptics abound, pointing to the intense pressures and hazardous working conditions that come with the position; Marokane's predecessors have faced everything from health crises to alleged assassination attempts.

Eskom's trajectory has been further tainted by its entanglement in corruption during the tenure of former president Jacob Zuma. Marokane himself, a self-professed victim of this period of "state capture," will have to navigate the complex political tapestry that accompanies the energy portfolio.

His resume includes a recent effort to revitalize sugar giant Tongaat Hulett following an accounting scandal. Eskom, however, presents a distinct set of challenges, such as the necessity to secure funding, actualize the unbundling process of the company, maintain an ageing fleet, and persuade the government and other stakeholders to embrace renewable energy as part of the country's energy mix.

Marokane's path will be fraught with resistance, including from segments within the government that are hesitant to shift away from coal, which remains the primary source for around 80% of the nation's power. His quest to secure new capacity primarily through renewable sources like solar and wind is indispensable, yet marred with political and bureaucratic hurdles.

With South Africa's future hanging in the balance, Marokane's approach to steering Eskom away from its dependence on bailouts and towards sustainability, reliability, and profitability, will be closely watched. It is indeed one of the most daunting executive roles in the country, exercising massive influence over South Africa's economic health and its industrial capabilities.