By Mbono Mdluli
MBABANE – A new chapter in Eswatini’s energy sector has begun as Old Mutual officially handed over the E1.3 billion Lower Maguduza Hydro Power Station construction site to contractors, marking the start of a groundbreaking renewable energy project.
The site handover, which took place on January 7, 2025, paves the way for a transformative energy initiative spearheaded by Middle Lusutfu Hydropower (Pty) Ltd, a joint venture between Old Mutual Eswatini and the Public Service Pensions Fund (PSPF). Located on the Lusutfu River in Sidvokodvo, the hydroelectric project is set to boost Eswatini’s power generation capacity by 20%.
With notable partners such as Inyatsi Construction and Dairy Farm Management, the initiative promises significant benefits for the local community, including the creation of over 100 jobs during the construction phase and additional opportunities for local service providers.
This ambitious 13.5 MW renewable energy project, undertaken in collaboration with Eswatini Electricity Company (EEC), aims to increase domestic power generation by 26%, contributing an estimated 67 GWh of clean energy annually to the national grid.
Inyatsi Construction, selected through an open tender process, will lead the construction, with the first electricity expected to flow by the end of 2026. This project represents a significant milestone in Eswatini’s drive toward energy independence and sustainability.
Speaking at a press conference held on January 6, 2024, at EEC’s headquarters in Mbabane, EEC Managing Director Ernest Mkhonta highlighted the project’s role in reducing the country’s reliance on imported coal-generated electricity. He emphasized that the initiative aligns with Eswatini’s goal to triple renewable energy capacity by 2030 and advance climate resilience.
