WATER PROJECT: UNLOCKING GOLDEN OPPORTUNITIES

MBABANE – The Mkhondvo-Ngwavuma Water Augmentation Project (MNWAP), driven by the Eswatini Water and Agricultural Development Enterprise (EWADE), is more than a solution to food security—it is a game-changing investment opportunity.

EWADE Chief Executive Officer (CEO), Dr Samson Sithole, is optimistic about the project’s potential to transform the lives of over 100 000 emaSwati in the Shiselweni region.
He also has a strong conviction that this multibillion-Emalangeni initiative is opening doors to high-return investments for local and international investors, offering access to a diverse range of sectors, from renewable energy to eco-tourism. “At its core, MNWAP focuses on agricultural and agro-industrial development aimed at boosting productivity in Eswatini’s agriculture sector,” explains Dr Sithole. “By doing so, it will enhance food and nutritional security and uplift incomes. However, the project’s impact goes beyond agriculture.”

Industrial opportunities

In addition to agricultural development, MNWAP will establish a Special Agro-Processing Zone (SAPZ) for oil and textile production, creating vast industrial opportunities. Dr. Sithole also highlights the infrastructure investments in transportation, energy, and urban development, designed to meet the growing population’s needs. With Eswatini strategically located between South Africa and Mozambique, Sithole envisions MNWAP evolving into a centre of regional excellence. The project will support agriculture while offering opportunities in education, health, and eco-tourism. Investors can tap into a market with increasing demand for renewable energy, infrastructure, and urban services.

A standout feature of MNWAP is its emphasis on renewable energy generation. Eswatini, currently, imports around 80 per cent of its power from South Africa and Mozambique, but MNWAP aims to contribute to the kingdom’s energy independence. EWADE Commercial Wing Director Musa Masilela, highlighted that among the key opportunities is developing a 5MW hydropower plant at the Ethemba Dam Tunnel outlet, which will be built through a public-private partnership (PPP). Investors can also explore solar energy generation, taking advantage of the abundant sunshine in the region. Masilela stated that a 10MW solar plant is already operational in Lavumisa, with the potential for further expansion to support the project’s planned eco-city.

Masilela is particularly excited about biomass energy, describing it as a “game changer” for Eswatini. Banagrass, organically grown under irrigation and rain-fed systems, will be a key component of the country’s renewable energy strategy. He said this biomass energy, alongside liquid gas production, will diversify the project’s renewable energy portfolio, positioning Eswatini as a leader in sustainable energy production for both local consumption and export. According to Masilela, MNWAP is also poised to capitalise on the growing eco-tourism and water tourism markets in southern Africa. He went on to say that the project area, centred around Mpakeni Dam, offers exciting opportunities for investors to develop resorts, recreational water sports, nature trails, and wildlife conservation projects. “This is a golden chance to contribute to sustainable tourism in the region,” Masilela said.

As the region develops, the need for social infrastructure grows. “There are countless opportunities for investors to contribute to the development of schools, vocational training centres, and higher education institutions,” says Masilela. These facilities will help nurture a skilled workforce, ensuring that the region continues to thrive. Healthcare is another priority, as MNWAP has plans to construct clinics and hospitals to meet the healthcare needs of the expanding population. Additionally, investors can develop recreational and retail facilities, including community spaces, sports centres, retail hubs, and entertainment complexes, contributing to vibrant, sustainable communities in the project area. Eswatini offers a range of attractive incentives for investors. These include repatriation of profits, fully serviced industrial sites, purpose-built factory shells at competitive rates, and duty exemptions on raw materials for exports outside the Southern African Customs Union (SACU).

Tax allowances

New investors also benefit from tax allowances and deductions, including a 10-year exemption from withholding tax on dividends and a low corporate tax rate of 10 per cent for approved projects. Investors in Special Economic Zones (SEZ) enjoy even greater benefits, such as a 20-year exemption from corporate taxation (followed by a reduced rate of 5 per cent), duty-free import of machinery and equipment, and full refunds on customs duties and value-added tax. There are no restrictions on repatriating profits, and operations within SEZs are exempt from foreign exchange controls. Other attractive incentives for Eswatini include preferential access to over 11 markets, including AfCFTA, SACU, SADC, SADC-EPA, EU, AGOA, and COMESA. The country has the potential to reach over 4 billion people with a combined GDP exceeding E1 quadrillion.

Masilela believes MNWAP presents a unique opportunity for investors to contribute to Eswatini’s sustainable growth while enjoying significant financial rewards. “With strong government support, attractive incentives, and a prime location at the heart of southern Africa, MNWAP is poised to become a regional hub for agricultural, industrial, and infrastructural development. Now is the time to join Eswatini on its journey towards economic prosperity and sustainable development,” he concluded.

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