Eswatini has launched construction on its first privately funded hydroelectric power plant, marking a significant milestone in the country’s energy sector
Led by South African renewable energy firms African Clean Energy Developments and Energy Infrastructure Management Services (EIMS Africa), the project is set to supply electricity to roughly 11,000 homes. The plant’s first power generation is anticipated by late 2026.
Hydropower investment milestone
According to Michael Wickins, chief commercial officer at EIMS Africa, the project’s procurement process dates back to 2004. Large-scale infrastructure projects of this nature typically take six to eight years to complete, and this initiative faced additional complexities as Eswatini’s first privately owned hydroelectric plant and EIMS Africa’s initial venture into hydropower.
Development hurdles included regulatory changes and necessary tax rule modifications. Wickins highlighted that the priority was to establish a robust regulatory framework before moving forward. Despite these early challenges, the project now has a strong financial foundation, supported by a 30-year power purchase agreement with Eswatini Electricity Company (SEC) and a government-backed guarantee.
The total investment in the plant is estimated between US$62.4mn and US$67.6mn, covering essential infrastructure, including equipment, civil works, and electrical systems. Securing financing was particularly challenging due to the rarity of private hydroelectric projects in Southern Africa. However, key financial support from Standard Bank and the Eswatini Public Pension Fund ensured the project’s viability.
Construction began in January 2025, with a projected 26-month timeline, targeting completion by early 2027. The plant will have a 13.5-megawatt capacity, capable of supplying power to 11,000 homes at peak output, though variations in water levels may impact generation.
Beyond electricity generation, the initiative is expected to create 100 to 150 local jobs during construction and play a crucial role in Eswatini’s renewable energy strategy. The project will operate alongside upcoming solar energy developments expected to reach financial close this year. Located on the Luso Free River, a tributary of the Lower Magadusa River, the plant represents a significant step toward diversifying Eswatini’s energy mix.
Eswatini’s first private hydropower project begins
Eswatini's first privately funded hydro plant, led by EIMS Africa, will generate 13.5 MW, powering 11,000 homes and boosting renewables. (Image source: Adobe Stock)
