Africa-Press – Eswatini. Eswatini has taken a powerful step towards long-term energy security and economic growth, following the signing of a landmark E2.4 billion Power Purchase Agreement (PPA) between Ubombo Sugar Limited (USL) and the Eswatini Electricity Company (EEC).
The historic agreement was signed on Monday, 8 December 2025, at the Hilton Garden Inn in Mbabane, in the presence of the Minister of Natural Resources and Energy, His Royal Highness Prince Lonkhokhela, alongside senior government officials, regulators, financiers and industry leaders.
Under the agreement, Ubombo Sugar will significantly expand its co-generation power plant, adding 24 megawatts (MW) to the national grid and exporting a total of up to 40MW to the national grid by June 2028. Once fully stabilised, the plant is expected to supply close to 141 gigawatt hours (GWh) annually — about 14% of Eswatini’s national electricity needs.
Speaking at the signing ceremony, HRH Prince Lonkhokhela described the project as a defining milestone in the Kingdom’s journey towards energy independence and economic resilience.
“This project represents the powerful synergy between agriculture, manufacturing and electricity generation – all critical pillars of national development,” said the Minister. “It will reduce our reliance on electricity imports, stabilise our power supply, create jobs and stimulate economic activity.”
The Minister commended the multi-institutional procurement team comprising EEC, ESERA, the Ministry of Natural Resources and Energy, and the Ministry of Finance, as well as the African Legal Support Facility (ALSF) for ensuring that the agreement meets international best practice.
A key highlight of the project is its strong local financial backing, with E900 million funded through Eswatini’s domestic banks. USL will fund the project with E1.5 billion. This reflects growing confidence in the country’s investment climate and strengthens local financial markets.
“This is local capital building national capacity,” the Minister emphasised.
The project is also set to bring direct benefits to local communities, with about 500 construction jobs expected during the building phase. Several local companies have already secured major civil works contracts, while a special SME participation programme is being developed to ensure small businesses also benefit.
USL Managing Director Muzi Siyaya described the project as one of the fastest power developments in Eswatini’s history, reaching financial close in just 18 months. He confirmed that strict delivery timelines are in place to ensure commercial operation begins as scheduled in 2028.
EEC Managing Director Ernest Mkhonta reaffirmed the utility’s commitment to strengthening national energy security and supporting Independent Power Producers (IPPs).
“The additional 40MW will raise Ubombo’s contribution to national energy demand from 5% to 10%,” Mkhonta said. “This significantly reduces our dependence on imported electricity and strengthens the stability of the grid.”
He added that the PPA price structure is pegged only to local inflation, ensuring long-term tariff stability for consumers.
The project builds on the success of an existing 16MW PPA between USL and EEC, which has operated reliably for the past 15 years. A bridging extension has also been signed to ensure uninterrupted supply until the new plant becomes fully operational.
Beyond power generation, the Ubombo expansion strengthens Eswatini’s broader vision of becoming a net exporter of electricity. Government has already commissioned new solar plants at Nduma, Motshane (20MW) and another one is coming at Ndzevane (15MW), with discussions ongoing with several other IPPs targeting up to 1 500MW for future export.
“This is what national alignment can deliver,” the Minister concluded. “Today we add power, confidence, momentum and opportunity. His Majesty’s Government remains fully committed to eradicating energy poverty and delivering affordable electricity to every Emaswati.”
With construction set to begin during the current off-crop season, the Ubombo–EEC power partnership stands as one of the most transformative infrastructure investments in Eswatini’s modern energy history.
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