Construction has commenced on the 13,5 MW Lower Maguduza hydropower plant in Eswatini following the project’s financial close.

It is being developed by African Clean Energy Developments (ACED) backed by the African Infrastructure Investment Managers-managed IDEAS Fund and the Eswatini Public Service Pensions Fund (PSPF) with additional support from Old Mutual Eswatini.

ACED is overseeing construction management while Energy Infrastructure Management Services (EIMS Africa) is responsible for operations, maintenance and long-term project management.

Eswatini Electricity Company will purchase all generated power under a bilateral power purchase agreement. The facility is expected to generate approximately 60 GWh of electricity annually, contributing to Eswatini’s national grid and supporting efforts to enhance energy security and reduce reliance on imported electricity.

“Reaching financial close and commencing construction on our first hydroelectric project in Eswatini is a major achievement. This initiative will contribute to Eswatini’s energy security while creating jobs and supporting local development,” says James Cumming, Chief Executive Officer of ACED.

Standard Bank South Africa acted as the lead arranger with Standard Bank Eswatini, Standard Bank South Africa and PSPF providing debt financing.

“This deal will unlock critical renewable energy development to support Eswatini’s energy security and access to affordable energy. It also assures the country’s steady journey towards reducing its reliance on traditional forms of energy,” said Sherrill Byrne, Executive Vice President for Energy and Infrastructure at Standard Bank.

The project forms part of a broader push for renewable energy in Southern Africa. ACED and EIMS Africa have collectively brought approximately 500 MW of hydro, wind and solar projects to financial close in the past two years, complementing their existing portfolio under South Africa’s Renewable Energy Independent Power Producer Procurement Programme.