Eskom's Chairman Reuel Khoza on the transformation of South African business

Abstract

Executive Overview Eskom, South Africa's state-owned electricity utility, has 24 power stations with a nominal capacity of 40,585 megawatts. It is among the top seven utilities in the world in terms of size and sales, and is presently one of the lowest-cost producers of electricity in the world. Eskom supplies approximately 95 percent of the country's electricity requirements, which equals more than half of the electricity generated on the African continent. Its 26,461 kilometers of transmission lines span the entire country, and also carry power to neighboring countries. Eskom is among the Big Four state-owned enterprises that will be restructured as part of the government's economic vision. State-owned enterprises in South Africa represent massive financial, investment, labor, technology, and infrastructure resources. The restructuring strategy aims at maximizing the contribution that state assets can make to the development of South Africa. Reuel Khoza has been chairman of Eskom since 1997. Previously, Mr. Khoza was founding managing director of Co-ordinated Management Consulting (Pty) Ltd. He is also currently executive chairman of Co-ordinated Network Investments, a board member of Standard Bank Investment Corporation Ltd., and a director of the Johannesburg Stock Exchange and Liberty Life. He has held directorships and chairmanships in both South African and global companies, including Vodacom, S. C. Johnson & Son S.A., IBM South Africa, Servgro International, Munich Reinsurance S. A., and Glaxo Wellcome, S. A. In this interview, Mr. Khoza talks about Eskom's role in the transformation of South Africa and its strategic intent to be the preeminent energy and related services business of global stature.