Mbabane – The success of Eswatini’s rural electrification programme could hinge on the performance of community-owned businesses, with the Eswatini Energy Regulatory Authority (ESERA) banking on a new wave of enterprises in Bulimeni and Mvundla to create jobs, generate income and strengthen the financial sustainability of mini-grid electricity systems.
In an interview with the Independent Business Desk, ESERA Communications Officer Teclar Maphosa said the Productive Use of Electricity (PUE) Programme was designed to ensure that electricity access translates into economic opportunities for local communities.
Construction has commenced on facilities that will house businesses including hammer mills, welding workshops, carpentry operations, dressmaking shops and hair salons. Once operational, the enterprises are expected to provide essential services closer to where people live while creating income-generating opportunities for community members.
According to ESERA, the businesses will also play a critical role in supporting the long-term viability of the mini-grids by serving as anchor customers and creating consistent demand for electricity.
“The PUE Programme is intended to help communities use electricity productively by supporting businesses that generate income, create jobs and meet local needs. This approach maximizes the benefits of electrification while also strengthening the sustainability of the mini-grid systems,” she noted.
Maphosa noted that without productive-use projects, domestic electricity tariffs would become less affordable as mini-grids would lack the commercial demand necessary to support cross-subsidisation.
To improve the sustainability of the enterprises, community members have undergone business management and financial literacy training facilitated by the Small Enterprises Development Company (SEDCO). Feasibility studies were also conducted to identify viable business opportunities based on local demand and available skills.
The Authority has further partnered with SEDCO through a Memorandum of Understanding to provide ongoing mentorship, business development support and capacity-building initiatives once the businesses become operational.
Community cooperatives have already been established in both Bulimeni and Mvundla and are currently undergoing registration. The cooperatives will own the facilities and operate some of the enterprises, including the hammer mills.
ESERA expects the businesses to stimulate entrepreneurship, create direct and indirect employment opportunities and retain economic value within the communities, helping transform rural electrification projects into sustainable engines of local economic growth.
Discussion about this post