MBABANE – The Eswatini Electricity Company (EEC) has been operating under heavy financial strain, recording over E200 million losses since 2020.
The Managing Director, Ernest Mkhonta, accompanied by the utility’s executive and operational managers told members of the media that there was a misconception that EEC is ‘swimming in cash’. Instead, he said, the company’s profits have been steadily declining over the years, affecting both net and operational profit.
For the financial year ending March 2025, the power utility reported a negative operational profit of E200 million meaning its expenses far exceeded its revenue. In the 2024/25 year, EEC supplied 1 181 GWh of electricity, generating E2.9 billion in revenue. The company serves nearly 299 000 customers, mostly domestic, with a smaller proportion of commercial and large industrial clients.
Mkhonta explained that losses have persisted due to a combination of factors, including high costs of purchasing electricity, insufficient tariff increases, and growing reliance on imports. The situation was worsened by a drought that limited local power generation, forcing the company to buy more electricity from outside the country at higher prices.
He noted that while some improvement was seen after COVID-19 restrictions eased, the financial gap widened again in recent years. In 2022/23, the utility recorded a loss of E60 million, which ballooned to E200 million in 2025.
The MD warned that without urgent solutions such as reviewing tariffs and reducing dependency on costly imports the company may need to borrow money to maintain services.
“We are not the cheapest electricity supplier in the region, but compared to some countries, our prices are still low,” he said while pointing out that Zimbabwe and Eswatini remain among the lowest in regional electricity pricing.
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