Standard Bank supports Eswatini's green energy hydropower project with R567 million funding

The bank acted in its capacity as mandated lead arranger for the transaction, and the funding will ensure that Eswatini is able to generate power internally from its natural resources and reduce its reliance on imports.

The Lower Maguduza Hydropower Project was developed by African Clean Energy Developments (Pty) Ltd (ACED) with the African Infrastructure Investment Managers (AIIM) managed IDEAS Fund and the Eswatini Public Service Pensions Fund (PSPF) as shareholders. ACED will continue to provide construction management services, with sister company Energy Infrastructure Management Services (EIMS) Africa being both the O&M contractor and the operations phase management services provider to the project.

Eswatini relies heavily on imported power, sourcing approximately 80% from its neighbours, primarily South Africa (65% from Eskom) and Mozambique. However, the government is actively working to change this dynamic. Recent reforms aim to increase domestic generation capacity, open up the energy market and ensure reliable, affordable electricity access. The potential for hydropower in sub-Saharan Africa is immense. The International Hydropower Association (IHA) indicates that while hydropower currently makes up 40% of the region's power generation, an untapped 90% of potential capacity remains—the largest in the world.

Standard Bank is committed to driving growth in Africa’s energy sector by providing funding solutions for projects that aim to provide innovative solutions to the continent’s energy crisis. 

Read more about this milestone transaction.