Calib Cassim, Eskom’s group CFO, describes the state utility’s dramatic turnaround and its plans for South Africa’s energy future.
Calib Cassim, Eskom’s group CFO, has more relaxed days and fewer difficult conversations at Megawatt Park as Eskom’s Generation Operational Recovery Plan has kept loadshedding at bay since 26 March 2024. The plan has seen various coal-fired power units refurbished, repaired or optimised, boosting performance. He attributes the turnaround to having the right people in the right positions.
A critical position was the group executive for generation, which was vacant for almost a year. “We needed someone who would passionately drive the plan’s execution while inspiring employees to achieve more,” comments Calib. Experienced energy executive Bheki Nxumalo took up the challenge in April 2024. “He understands the business, culture and many of our power stations. Sometimes, you have the same players on a team, but you need a different coach.”
Bheki assessed the skills of power station managers, especially in the critical and bigger plants. He moved people to different portfolios, making a significant difference. All Eskom’s power stations are now led by individuals who understand the plants’ technical aspects.
Power station employees are incentivised to improve power availability and reduce reliance on burning diesel. This incentive applies to everyone; it is not differentiated by pay grades. “They hold each other accountable. It’s been a major culture shift,” comments Calib.
As the loadshedding levels crept down and days passed without power cuts, confidence and morale have returned. “We aim to finish 2024 without loadshedding. We may need to loadshed at lower stages for very short intervals.”
Financial headroom
The R245 billion in debt relief from government, paid over three years from March 2023, eased the pressure on the company’s finances, allowing it to plan and invest in infrastructure. The savings on diesel spending have also boosted liquidity. From April to October 2024, Eskom spent R5.92 billion on open-cycle gas turbines, 66 percent less than the R17.43 billion spent during the same period in 2023.
“Let’s not underestimate the importance of having finances available. We can secure critical spares with manufacturers, plan maintenance, and allocate capital further in advance. It’s vastly different from wondering if we can pay salaries at the end of the month.”
This has changed the conversations Eskom has with lenders. “Last winter, we contemplated stage 8 and higher in order to protect the national grid . We still have significant challenges ahead, but our lenders have more confidence in our ability to turn the ship around.”
Stepping into the firing line
Eskom’s former chairman, Mpho Makwana, asked Calib to act as CEO in February 2023 when CEO Andre de Ruyter departed. The role was meant to last a few months, but time passed, and Calib spent a year as acting CEO. He describes the experience as tremendous, difficult and enriching. He is grateful for the support from the exco, the board and the Minister of Electricity.
“In the CEO role, you must be closer to your stakeholders and their concerns. It comes with many conflicting objectives. I appreciate how the numbers talk to the business. It’s given me a deeper understanding of the operations, and I can proactively lead discussions and ask better questions.”
As acting CEO, Calib first focused on supporting his exco and team members. This was critical as the utility experienced its worst loadshedding and damning media coverage. “You need to support your people. It’s about providing hope and reminding them to take it one day at a time,” adds Calib.
Leading with integrity
In March 2024, Calib returned to the CFO role, responsible for approximately 2,500 finance employees. He was appointed CFO in November 2018. “When I took up the role, I just wanted to survive and not be front page news. It was important that my colleagues could trust my word. You must uphold values and ethics of the highest standards when in difficult positions. It’s better to lose a job than your values.”
Calib attributes his 22-year tenure to Eskom’s ability to impact South Africa positively. “Our decisions and performance affect 65 million people. That’s why loadshedding has been so painful. We are determined that electricity should not be the bottleneck to GDP growth but rather a catalyst.”
He still has goals to tick off, such as receiving a clean audit, returning to profitability and rewarding Eskom’s loyal workforce. “As performance improves, I look forward to signing off on annual bonuses for staff for the first time.”
The role’s challenges keep him engaged: “Eskom is dealing with many things simultaneously. We’re unbundling. We’re transitioning to green energy. The industry is changing. We’re working with law enforcement to deal with corruption. It’s never boring, but you must handle the pressure.” For Calib, this requires delegating and asking for help and winning the support of his team, broader colleagues, and other stakeholders.
A greener future in an evolving industry
Eskom has been in crisis mode since loadshedding started in 2007 but can finally contemplate a future without loadshedding. The board has been stable for two years, and Dan Marokane rejoined Eskom as group CEO in March 2024. Eskom is also replacing the many senior people who have left. The utility must shift its priorities and thinking. “We’re starting to have new conversations. How do we improve our processes? How do we bring new technology and knowledge into the organisation?”
Decarbonisation and the net zero transition by 2050 are critical global topics. Eskom will increasingly invest in renewables, with the full support of the board and government. The state utility is inviting proposals to develop renewable energy and repurposing or “greening” older stations.
Eskom cannot finance the required investment in generation, transmission or distribution off its balance sheet. “We don’t have to own everything. Private companies are agile and have better technology. Eskom needs to deliver the infrastructure quicker, and this can only be accomplished through partnerships.”
Technology is essential in embedding better controls and mitigating corruption. For example, Eskom is implementing a digital procurement process to speed decision-making and eliminate risks. Technology can also recommend predictive maintenance and flag early warning signals at the power stations.
Electricity wheeling and distribution trading are also part of the future. The industry and the supporting legislation, policies and frameworks must evolve quickly. “We want to contribute to the policies and frameworks going forward. Ultimately, we want consumers to have more choices, like the telecoms industry. We want to give them a choice and hold us accountable.”
