Eskom board chairman Mteto Nyati and Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso have engaged in a public dispute regarding the future ownership of South Africa’s electricity transmission grid. The confrontation follows ongoing tensions over the unbundling of the state utility and the government’s commitment to creating an independent transmission system operator.
Divisive Views On Governance And Policy
Nyati has publicly criticised BLSA and Business Unity South Africa (BUSA), accusing the organisations of hypocrisy for advocating political intervention in how transmission assets are transferred. In a recent statement, the Eskom chair noted that he is frequently approached privately by business leaders requesting, or seeking intervention in, operational and procurement matters at the utility.
These are the same bodies that insist on corporate governance and board independence. Where, then, is the role of the SOE board? What exactly do they believe in?
Mavuso dismissed these claims as a fundamental misunderstanding of the motives behind business advocacy. She maintained that the push for an independent operator is rooted in established law, specifically section 34A of the Electricity Regulation Amendment Act.
Nyati is fundamentally mistaken both on the motives for our advocacy and what good governance demands of the Eskom board. Asking the president to implement his own government’s stated policy is the opposite of asking for an exception. It is asking Eskom’s leadership to follow the rules.
Reform Context And The Path Forward
The core of the disagreement reflects a complex transition period, as the government attempts to shift from Eskom’s historic monopoly to a liberalised market designed to attract private investment. President Cyril Ramaphosa reaffirmed during his February 2026 State of the Nation Address that the government intends to establish an independent, state-owned transmission entity that will exercise full ownership and control over the national grid.
This policy direction faces friction with the utility’s leadership, who have raised concerns regarding balance sheet stability and the risk of potential creditor cross-defaults during the asset separation process. While a National Energy Crisis Committee (NECOM) task team was established to oversee the transfers, its reporting deadline was recently extended to 30 June 2026. Further clarity on the structure of the grid operator is expected following the finalisation of the task team’s review of the asset transfer strategy.