BY PHUMELELE GAMEDZE
MBABANE – For the Industrial Development Company of Eswatini (IDCE), financing the Bulimeni solar mini-grid was about more than putting money behind a business venture.
The development financier looked closely at the entrepreneur’s technical expertise, track record and ability to manage money before committing support to a project expected to bring electricity and new economic opportunities to a remote community.
IDCE Manager – Business Development Mthunzi Dlamini said the institution was particularly attracted by the project’s potential to improve lives while creating a viable business opportunity.
“The reason we finance it is because it is benefiting communities,” Dlamini said.
He explained that IDCE became interested after learning that the entrepreneur was involved in the United Nations Development Programme-supported energy initiative aimed at extending electricity access to communities that are difficult to connect to the national grid.
The nature of the project also meant the contractor needed financial muscle to begin the work because payment would not necessarily be made upfront.
That placed greater importance on determining whether the entrepreneur could successfully undertake the project while managing the financing responsibly.
Dlamini said technical competence was the first major consideration.
The entrepreneur is an electrical engineer with experience in the energy sector, which gave IDCE confidence that he possessed the technical knowledge required to carry out the work.
His previous performance was equally important.
According to Dlamini, the entrepreneur had already undertaken similar assignments and demonstrated that he could deliver work entrusted to him.
Financial management became the third major test.
“He demonstrated the ability of someone who has financial management ability,” Dlamini said.
For IDCE, the combination of technical expertise, proven performance and sound financial management provided confidence that the business could handle a project of this scale.
168 CUSTOMERS TO BENEFIT
The Bulimeni development forms part of the Africa Minigrids Programme (AMP), a four-year initiative supported by the United Nations Development Programme and financed by the Global Environment Facility.
In Eswatini, the programme is implemented through the Eswatini Energy Regulatory Authority in partnership with the Ministry of Natural Resources and Energy and other development partners.
Its broader aim is to improve the financial viability of mini-grids and encourage commercial investment in clean energy solutions for remote communities.
Bulimeni was identified as one of the communities where extending the conventional electricity grid has proved difficult because of its remote location.
The latest project design provides for a 65-kilowatt peak solar photovoltaic mini-grid supported by 165 kilowatt-hours of battery storage.
Once operational, it is expected to serve about 168 customers, including households and businesses.
Construction officially started in June 2026, with SBM Projects appointed to build the mini-grid.
But the project is designed to deliver more than household electricity.
It also includes a Productive Use of Energy component intended to support income-generating activities such as baking, sewing, welding, grocery businesses and hammer milling.
This could open new opportunities for small businesses and employment within the community once reliable electricity becomes available.
PRIVATE SECTOR ROLE
The project is also testing a model in which the private sector plays a direct role in rural electrification.
The selected developer is responsible for designing and constructing the mini-grid while contributing towards its financing. The developer will also be responsible for operating and maintaining the system for 20 years.
The Africa Minigrids Programme views the project as an example of how government, communities, development partners and private businesses can work together to expand sustainable electricity access.
The programme has also been working to improve financiers’ understanding of mini-grid business models, including tariffs and project viability, with access to local finance having previously been identified as one of the challenges facing mini-grid development.
For IDCE, the Bulimeni experience shows how development financing can stretch beyond the traditional relationship between a lender and borrower.
It gives a local entrepreneur a commercial opportunity while helping deliver electricity to a community that has historically lived without it.
As Bulimeni moves closer to receiving electricity for the first time, the project could also provide useful lessons on how local entrepreneurs and development financiers can participate in expanding renewable energy access across Eswatini.
