MBABANE – Government has allocated E1.73 billion to the Ministry of Natural Resources and Energy, and mining for the 2026/27 financial year.
This has been regarded as government’s aggressive push to unlock Eswatini’s mineral wealth, accelerate power generation, expand electricity access and secure national fuel reserves.
Delivering the national budget last Friday, Finance Minister Neal Rijkenberg said the allocation positions the ministry as a central driver of economic growth, energy security and industrial development, as the country works to reduce reliance on imported electricity and fuels, while tapping into long-underexplored mineral resources.
The minerals sub-sector is set to receive renewed attention following extensive mineral surveys conducted by the Geological Survey Department, which generated several potential mineral targets across the country.
Government will now undertake follow-up surveys to fully unlock the value of these natural resources, with E6.13 million provided in the 2026/27 budget cycle to advance detailed investigations and feasibility work.
The minister reported positive momentum in mineral rights administration, with several licences granted under the auspices of iNgwenyama in trust for emaSwati.
Three coal mining licences were issued, including one to the national power utility, Eswatini Electricity Company, to undertake feasibility studies towards developing a thermal power plant that would feed into the national electricity grid.
In the north-western part of the country, two gold prospecting licences were granted to support exploration programmes, while the iron ore project at the defunct Ngwenya Iron Ore Mine received an extension of its prospecting licence to determine the viability of extracting in-situ resources.
For the business community, these developments reopen prospects for mining-linked investment, logistics, equipment supply, downstream beneficiation and potential export earnings.
Analysts say successful commercialisation of any of the identified deposits could stimulate local job creation and help diversify Eswatini’s economic base beyond traditional sectors.
In the energy space, government has made notable progress through the Power Procurement Programme towards the construction of 75MW of solar PV plants to be developed by the private sector.
The launch of the 20MW Nduma solar PV plant has already taken place, with a 15MW Ndzevane solar PV plant expected to follow.
To further diversify Eswatini’s energy mix, a Power Purchase and Grid Connection Agreement has been signed with Ubombo Sugar Limited for the development of a 40MW biomass power plant, which is expected to significantly boost local generation capacity.
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