Mbabane – Ubombo Sugar Limited (USL) has strengthened Eswatini’s energy outlook after signing a landmark Power Purchase Agreement (PPA) with the Eswatini Electricity Company (EEC) for a E1.5 billion cogeneration expansion project that will significantly increase local power generation.
The agreement, signed on Monday at the Hilton Garden Inn, sets in motion one of the country’s largest private-sector energy investments and will see USL’s power export capacity rise from 17MW to 40MW. The commissioning of this project is targeted for April 2027 and is expected to be completed in 18 months from commissioning date.
Once operational, the expansion will double the amount of electricity USL contributes to the national grid. The company currently supplies about 5% of EEC’s total electricity but will now supply 10%.
Speaking during the signing ceremony, USL Managing Director, Muzi Siyaya, said the signing marked a major milestone for Eswatini’s energy future and demonstrated what could be achieved through strong collaboration between public institutions and the private sector.
Siyaya said the project moved from tendering stage to financial close in just 18 months, making it one of the fastest-advancing infrastructure developments of its scale in the region. Siyaya added that to make sure that the project is completed in time the contract includes a strict performance and penalty regime to ensure the project stays on schedule ahead of its June 2028 commercial operation date.
Of the E1.5 billion investment, E900 million will be financed by local financial institutions, a move Siyaya said signals confidence in the country’s investment climate and contributes to strengthening the domestic financial market.
The project will create an estimated 500 construction jobs, with local companies already securing key civil works and power-evacuation contracts. A dedicated SME participation package is being finalised to ensure small businesses also benefit from the investment. Siyaya said the expansion would also develop new technical and engineering skills, contributing long-term value beyond construction.
He highlighted that the additional 40MW would play a critical role in supporting tariff stability, boosting industrial competitiveness and enhancing Eswatini’s energy resilience.
Siyaya commended ESERA for its transparent regulatory process and EEC for its technical and commercial engagement as the offtaker. He also thanked the USL Executive Committee and the company’s shareholders ABF Sugar and Tibiyo TakaNgwane for providing strategic oversight throughout the development phase.
“Today, we add more than 40MW to the grid. We add momentum, confidence and opportunity. This is what partnership looks like. This is what national alignment can deliver,” Siyaya said.
Discussion about this post