MBABANE (4 February 2025): Standard Bank has successfully closed a R567-million financing deal for Eswatini’s 13.5 MW Lower Maguduza hydropower project, marking a major step towards the country’s energy independence, according to the business news site, AGCNewsNet.
The project, developed by African Clean Energy Developments (ACED), is backed by the African Infrastructure Investment Managers-managed IDEAS Fund and the Eswatini Public Service Pensions Fund. ACED will oversee construction, while EIMS Africa will manage operations and maintenance.
As the mandated lead arranger, Standard Bank emphasized the project’s role in helping Eswatini generate power locally rather than relying on imports. Eswatini currently sources 80% of its electricity from South Africa and Mozambique, with 65% coming from Eskom alone.
“With this financing, we reaffirm our commitment to driving Africa’s just energy transition,” said Standard Bank’s head of corporate and investment banking in Eswatini, Barry Schutzler.
The Lower Maguduza project is one of Eswatini’s first independent power producer (IPP) projects, shifting the country away from imported coal-based electricity towards renewable energy.
Hydropower already accounts for 40% of power in sub-Saharan Africa, yet the International Hydropower Association notes that 90% of the continent’s hydropower potential remains untapped—the largest underutilized capacity worldwide.
“This deal unlocks critical renewable energy development for Eswatini and strengthens its energy security,” said Standard Bank energy and infrastructure executive VP Sherrill Byrne.
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ACED CEO James Cummings highlighted the project’s benefits beyond energy, stating, “This will create jobs and support local development while ensuring Eswatini’s shift to sustainable energy.”
With construction already underway, the Lower Maguduza hydropower project is set to redefine Eswatini’s energy landscape.
