Blackouts & Broken Trust: How African Utility CEOs Can Rebuild Confidence

Across Africa, power outages do more than just darken homes—they halt businesses, cripple economies, and result in billions lost in economic activity. This situation is exacerbated by the alarming fact that, according to Robert Stoner, Deputy Director for Science and Technology at the MIT Energy Initiative, there is only one financially solvent utility company on the entire continent. In South Africa, recent blackouts lasting over 12 hours have not only disrupted daily life but have also sparked widespread protests. Citizens are clamouring for more than just the restoration of electricity; they are demanding accountability and trustworthiness from Eskom, their national utility provider.

These frequent and prolonged blackouts lay bare a deeper, more systemic issue: a profound lack of public trust in African utilities. This mistrust stems from perceptions that energy providers may lack honesty, commitment to the public good, the expertise required to effectively address and resolve issues, and a genuine willingness to pursue enduring solutions.

The Challenges CEOs Face

Rebuilding trust is undeniably difficult for African utility CEOs. They often operate within politically complex systems, inheriting historical issues and facing limited resources. Yet, decisive action is needed. There’s no way around it. And operationalizing trust can help to energise the path forward.

Rebuilding Trust: A CEO's Responsibility

African utility CEOs can play a pivotal role in restoring confidence by prioritising trust and operationalizing it through concrete actions. This means demonstrating a fundamental shift in mindset, moving from a focus on short-term gain to a long-term commitment to transparency, accountability, and customer centricity.

Rebuilding Trust: A CEO's Opportunity

The current crisis offers African utility CEOs a unique chance to transform their organisations and contribute significantly to national progress.  By embracing trust as a core operational principle, they can unlock benefits such as Enhanced Performance. According to Deloitte, companies with high levels of trust experience a 400% increase in performance compared to those with low trust. This translates into improved reliability, more efficient operations, and better financial outcomes for utilities.