Eswatini Begins 13.5MW Hydro Project

Key Figures & Findings:
Construction has started on Eswatini’s 13.5MW Lower Maguduza Hydro Power Project, a key step toward reducing dependence on Eskom and achieving energy self-sufficiency. Developed by African Clean Energy Developments (ACED) with backing from African Infrastructure Investment Managers (AIIM) and the Eswatini Public Service Pensions Fund (PSPF), this is the first privately-owned power generation project in the country. The Eswatini Electricity Company (EEC) will purchase all generated power, while Standard Bank, the lead arranger, provided debt financing.

Statistics & Insights:
Eswatini’s electricity demand peaks at 234MW, yet its installed generation capacity is only 71MW, forcing heavy reliance on imports. The Lower Maguduza plant will generate enough power for 11,000 homes, reducing Eswatini’s carbon footprint without requiring new dams.

Future Implications:
With operations set to begin in 2027, this hydro project could stabilize electricity tariffs, create local jobs, and enhance Eswatini’s clean energy portfolio. ACED and AIIM also plan a solar project, expected to reach financial close this year.

Source: Moneyweb