Lower Maguduza Hydropower Project Secures E567M Investment from Standard Bank

Eswatini’s energy independence goals have received a major boost as Standard Bank Eswatini approves E567 million in funding for the 13.5MW Lower Maguduza Hydropower Project.

The project, developed by African Clean Energy Developments (ACED) in partnership with African Infrastructure Investment Managers (AIM) through the IDEAS Fund and the Public Service Pensions Fund (PSPF), is now set to move forward. ACED will oversee construction, while its sister company, Energy Infrastructure Management Services (EIMS Africa), will handle operations and maintenance.

As the mandated lead arranger for the transaction, Standard Bank emphasized that this project will help Eswatini generate more power locally, reducing its reliance on electricity imports.

A Step Toward Energy Independence

Eswatini currently imports its electricity from Mozambique and South Africa, with Eskom supplying a larger portion to the country (65%). The Lower Maguduza project is among the first independent power producer (IPP) initiatives in the country, marking a critical shift toward sustainable, homegrown energy solutions.

Standard Bank fully supports the transition to renewable energy, as stated by its Head of Corporate and Investment Banking, Barry Schutzler.

“This investment demonstrates our dedication to responsible energy solutions and accelerating Eswatini’s energy sovereignty,” she said.

Unlocking Hydropower Potential

The International Hydropower Association (IHA) reports that while hydropower generates 40% of Sub-Saharan Africa’s electricity, 90% of its potential remains untapped.

Contents

A Step Toward Energy Independence Unlocking Hydropower Potential Economic Growth and Job Creation

Sherrill Byme, Standard Bank Group’s Executive Vice President for Energy and Infrastructure, stated that this funding represents a significant milestone for Eswatini’s energy future.

“This deal will unlock critical renewable energy development, ensuring greater energy security and affordability for Eswatini,” Byme said.

Economic Growth and Job Creation

ACED CEO James Cumming expressed excitement about reaching the financial close and starting construction.

“This project will not only improve Eswatini’s energy security but also create jobs and support local economic growth,” he said.

The funding comes in response to His Majesty King Mswati III’s call for Eswatini to fully utilize alternative energy sources, including hydro, coal, biomass, and solar, to ensure a sustainable power supply. He has emphasized that strong partnerships will be essential in unlocking the country’s full energy potential.

With the financial backing now secured, the Lower Maguduza Hydropower Project is set to play a key role in Eswatini’s transition to a more self-sufficient and sustainable energy future.