MBABANE – EIPA says the E2.4 billion investment by Ubombo Sugar Limited (USL) marks one of the strongest demonstrations yet of growing investor confidence in the kingdom’s economic prospects.
The Eswatini Investment Promotion Authority EIPA Chief Executive Officer Sibani Mngomezulu said USL’s shift from pledge to implementation – following the signing of the Power Purchase Agreement (PPA) with the Eswatini Electricity Company (EEC) – reflects a decisive commitment to Eswatini as an attractive destination for long-term capital.
Mngomezulu said the investment pledge by Ubombo Sugar Limited and its subsequent migration to the implementation phase represents “an intrepid signal of trust in the future of Eswatini’s economy and a vote of confidence in Eswatini as an attractive investment destination.”
“We welcome the FDI injection to the economy by Associated British Foods PLC, USL’s parent company,” he added.
“The successful implementation of the pledge will transform the sugar industry, bolster national energy security and contribute to job creation. We believe that the implementation of this project sends a positive signal about Eswatini’s potential to host mega projects, and we encourage those investors who made pledges at the investment conference to accelerate their proposed projects. We remain ready to assist and provide support in this regard.”
The E2.4 billion investment covers USL’s mill capacity expansion and the construction of a large-scale cogeneration power plant. The project is expected to unlock new employment opportunities for emaSwati both during the construction phase and later in the operation and maintenance of the expanded facility.
As part of the expansion, the cogeneration asset will export a maximum of 40MW of clean energy to the national grid by June 2028, representing a significant 24MW increase from current export capacity. This expansion forms a critical component of Eswatini’s long-term strategy to boost domestic power generation and reduce dependence on imports. Building on the existing 16MW PPA relationship between EEC and USL, Mngomezulu expressed confidence that both parties would leverage their experience to ensure the success of the 40MW maximum export capacity agreement. He noted that despite the unique technical constraints inherent in sugar processing cogeneration plants, the partnership has proven its capability over the years.
Once the project reaches stable generation, the cogeneration plant is expected to deliver close to 141 GWh of electricity per year, equivalent to about 14 per cent of Eswatini’s national energy needs. This will mark a major leap forward in the country’s renewable energy output and overall energy security.
EIPA formally welcomed the conclusion of the PPA between USL and EEC, which clears the way for the full implementation of USL’s multibillion-Lilangeni expansion plan.
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