MBABANE – Government has taken a significant step towards strengthening the management of energy-sector revenues and obligations with the introduction of the Mozambique Transmission Company Transit Fee Fund Regulations, 2026.
Contained in Legal Notice No. 39 of 2026 and issued under the Public Finance Management Act of 2017, the new regulations provide for the establishment, administration and oversight of a dedicated fund linked to the operations of the Mozambique Transmission Company (MOTRACO).
It is worth noting that last year, the Minister for Finance, Neal Rijkenberg, shared that at least E39 million was collected from MOTRACO.
The move is expected to enhance transparency, accountability and strategic investment in the country’s electricity sector, while ensuring that Eswatini meets its contractual obligations tied to regional power transmission infrastructure.
MOTRACO is a joint venture involving electricity utilities from Eswatini, Mozambique and South Africa and is responsible for operating a high-voltage transmission line that connects the three countries. The infrastructure plays a critical role in regional electricity trade and energy security.
The newly established fund will receive transit fees paid by MOTRACO to the Government of Eswatini for the use of transmission infrastructure within the kingdom. These fees, along with other financial inflows such as parliamentary appropriations, grants, loans and donations, will be ring-fenced under the fund.
According to the regulations, the fund’s primary objective is to ensure that government meets all obligations arising from agreements related to the transmission line, particularly the long-standing contract signed on June 28, 2002.
Beyond fulfilling contractual commitments, the fund is also designed to support broader development within Eswatini’s electricity sector.
Key areas of focus include financing programmes, technical studies, capacity-building initiatives and training aimed at strengthening the country’s energy systems. The fund may also be used to support workshops, stakeholder engagements and sector-wide planning processes.
Importantly, the regulations provide room for the fund to contribute towards the resolution of disputes under the Electricity Act, as well as to support power generation, transmission and distribution projects as determined by the minister responsible for energy affairs in consultation with the minister for Finance.
This flexibility positions the fund as a strategic tool for addressing both immediate and long-term challenges within the energy sector.
The regulations set out a detailed governance framework for the administration of the fund, placing overall responsibility on the principal secretary in the ministry responsible for energy affairs.
The Department of Energy Affairs will oversee the day-to-day activities of the fund, while disbursements will be processed by the accountant general upon approval by the principal secretary.
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