Eswatini’s Hydro Power Project Begins

January 29, 2025 • Estimated Reading Time: 2 minutes

Key Figures & Findings: African Clean Energy Developments (ACED) and Energy Infrastructure Management Services (EIMS Africa) have officially commenced construction on the 13.5MW Lower Maguduza Hydro Power Project in Eswatini. Sponsored by ACED with financial backing from the African Infrastructure Investment Managers (AIIM) IDEAS Fund and the Eswatini Public Service Pensions Fund (PSPF), this project represents a critical step towards Eswatini’s energy independence. All electricity generated will be sold to the Eswatini Electricity Company (EEC) under a Power Purchase Agreement (PPA), providing a sustainable and reliable energy source for the nation. 

Statistics & Insights: ACED and EIMS Africa have successfully secured financial close on nearly 500MW of renewable energy projects in the last two years. Standard Bank, alongside PSPF and Old Mutual Eswatini, structured the financing for this hydro project.

Future Implications: As Eswatini reduces its reliance on traditional energy sources, the Lower Maguduza Hydro Power Project could serve as a blueprint for future renewable energy initiatives in the region. By 2030, such projects could bolster local economies, foster sustainable development, and enhance regional energy resilience.