- The lower Maguduza hydroelectric project (13.5 MW) marks a significant step in Eswatini’s energy security and clean energy goals.
- ACED and EIMS Africa lead the project, which is financed by Standard Bank and local investors. A power purchase agreement with EEC ensures long-term energy sales.
- The project will create local jobs and contribute to regional renewable energy development, serving as a model for other African nations.
Eswatini’s energy sector has made significant progress with the financial closure of the Lower Maguduza hydroelectric project. The 13.5 MW project, led by African Clean Energy Developments (ACED) and EIMS Africa, will soon begin construction. The project supports Eswatini’s efforts to strengthen energy security and reduce dependence on fossil fuels.
ACED and EIMS Africa are developing their first hydroelectric project in Eswatini. According to the World Bank, Eswatini will achieve an electrification rate of 82% by 2022, with renewables already contributing 65% to the energy mix. The Lower Maguduza project will increase that share, advancing the country’s clean energy goals.
Standard Bank and local investors secured the project’s financing, highlighting the growing role of regional financial institutions in Southern Africa’s renewable energy sector. The Eswatini Electricity Company (EEC) signed a power purchase agreement (PPA), ensuring long-term energy sales. This agreement aims to reduce Eswatini’s reliance on energy imports and strengthen the country’s energy stability.
The project will also generate jobs during its construction and commissioning phases, benefiting the local economy. James Cumming, CEO of ACED, emphasised the project’s importance in supporting regional development and enhancing energy independence.
The Lower Maguduza project contributes to a broader regional effort to expand renewable energy. ACED and EIMS Africa have already completed 500 MW of renewable projects in two years. They also manage over 1 GW through South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The Eswatini project could serve as a model for other regional countries.
Eswatini’s pursuit of energy self-sufficiency through projects like Lower Maguduza will foster economic growth and social development. As the country reduces its dependence on energy imports, it also sets an example for other African nations. Other countries on the continent are pursuing similar renewable energy projects, accelerating the region’s transition to clean energy.
With the financial closure secured, the Lower Maguduza hydroelectric project will strengthen Eswatini’s renewable energy profile, create local jobs, and set a standard for similar projects in Southern Africa.