Mbabane – The Eswatini Investment Promotion Authority (EIPA) said the Power Purchase Agreement (PPA) between Ubombo Sugar Limited (USL) and the Eswatini Electricity Company (EEC) is a transformative step toward strengthening the country’s energy security and industrial capacity.
EIPA released a statement saying the project will scale USL’s clean energy generation capacity to 40MW, with all power generated exported into the national grid, reducing Eswatini’s dependence on imported electricity and improving energy security.
USL’s pledge includes a major factory expansion under its two-phase debottlenecking project, as well as a 40MW renewable energy cogeneration project.
The initiative aligns with the company’s strategy to deepen its footprint in sugar production while significantly contributing to the national renewable energy mix.
EIPA CEO, Sibani Mngomezulu, said the move reflects strong investor confidence in Eswatini’s economic landscape.
“The investment pledge by USL and its subsequent migration to the implementation phase represents an intrepid signal of trust in the future of Eswatini’s economy and a vote of confidence in Eswatini as an attractive investment destination,” he said.
Mngomezulu further applauded the company’s parent firm, Associated British Foods PLC, for its contribution to foreign direct investment.
“We welcome the FDI injection to the economy by Associated British Foods PLC. The successful implementation of the pledge will transform the sugar industry, bolster national energy security and contribute to job creation,” he said.
He added that the project demonstrates Eswatini’s readiness to accommodate major industrial investments.
“We believe that the implementation of this project sends a positive signal about Eswatini’s potential to host mega projects, and we encourage those investors who made pledges at the Investment Conference to accelerate their proposed projects,” Mngomezulu stated.
He assured investors of the organisation’s continued commitment, saying: “We remain ready to assist and provide support in this regard.”
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