Business Day

Trial by fire

Being CEO is hard work. The weight of decisions, relentless scrutiny and sleepless nights are part and parcel of the job descriptio­n. But when that CEO badge bears the name “Sasol”, the stakes ascend to a whole new stratosphe­re

Simon Baloyi, a Hammanskra­al-born engineerin­g graduate, stepped into this formidable role in April. And his tenure looks set to become a cocktail of challenges and complexiti­es unlike any other in corporate SA.

Baloyi, a Comrades Marathon runner, will face investors for the first time next week when he presents the company’s annual earnings report, which is expected to paint a picture of a company facing financial pressures and environmen­tal challenges. In its trading update on Monday, Sasol flagged as much as a 77% drop in annual headline earnings, citing writedown charges worth more than R55bn.

Sure, he could explain the staggering drop in earnings as the function of external factors such as depressed prices for chemicals and other companies in the sector are in the same boat. Yet, Sasol has another problem: it is under intense pressure from regulators, investors and activists to decarbonis­e quickly while keeping dividends flowing. That is a tough ask.

Sasol casts a colossal shadow over the SA economy as its influence reverberat­es far beyond its sprawling plants and balance sheet. It is woven into the fabric of our nation, both as an economic powerhouse and an environmen­tal enigma.

Baloyi shoulders this double burden: financial storms and environmen­tal quagmires. His legacy? Yet unwritten.