Promise of renewable energy powers Eswatini's small businesses
AFRICA
4 min read
Promise of renewable energy powers Eswatini's small businessesSmall businesses in Eswatini are grappling with unreliable power supply and rising energy costs, but a new initiative promises renewable solutions.
By reducing reliance on unstable grid power and expensive diesel generators, small businesses in Eswatini can now reinvest savings into growth and job creation. / Reuters
April 3, 2025

Lungelo Kunene's vegetable farm in her native Eswatini wilts under the double whammy of erratic electricity supply and spiralling energy costs.

Her crops need regular watering to survive, yet it's a daily challenge to keep her irrigation system running as rising diesel prices erode her earnings.

"Last season, I lost half my tomato crop because I couldn't afford the diesel needed to run the water pump," she tells TRT Afrika.

Her story echoes across small businesses that form the backbone of this landlocked, Southern African country's economy.

Mkhanda Vilane, who runs a textile workshop in Manzini, has seen his productivity and profitability suffer because of frequent power outages.

The sewing machines fall silent during blackouts, leaving orders unfinished and missed client deadlines in their wake.

"We lose hours of work whenever there is loadshedding," he says. "I have missed delivery schedules and lost money on several occasions."

Now, a new initiative funded by the European Union (EU) aims to bring relief, not just to Mkhanda and Lungelo, but to hundreds of micro, small and medium enterprises (MSMEs) across Eswatini.

The US $880,000 grant is intended to support MSMEs in adopting renewable and efficient energy solutions that will help them overcome the challenges hindering their growth for years.

Long-term solutions

The four-year CREATE programme aims to enable farmers with small landholdings, agribusinesses, and manufacturers to integrate solar power, biogas, and other green technologies into their operations, reducing costs and boosting sustainability.

For those like Lungelo and Mkhanda, who have seen their profits evaporate, the programme marks a potential turning point.

Behind the implementation of these energy solutions are some unlikely allies: government planners from the ministry of economic planning working alongside experts from the United Nations Development Programme (UNDP) and Catalyse Eswatini, a local nonprofit transforming blueprints into reality.

The goal is to turn hope into kilowatts, with ministry planners mapping energy access in boardrooms, energy technicians hauling solar kits down rural dirt roads, and Catalyze Eswatini's financiers crafting loan terms even grandmothers can understand.

Women to the fore

Eswatini's minister of economic planning and development, Dr Tambo Gina, emphasises the project's alignment with global development goals.  

"The goal of this partnership with the EU is to ensure our small businesses can operate efficiently and sustainably," he said during the mid-March launch of the project in the capital city of Mbabane.

The sustainable development plan envisions at least 40% of Eswatini's supported enterprises being owned or managed by women.

"Women entrepreneurs often face greater barriers in accessing finance and technology," said Henrik Franklin, UNDP's resident representative, during the launch of CREATE.

"This project will help level the playing field, enabling them to scale their businesses and drive innovation."

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Alile Nkosi, who owns a poultry farm in Siteki, has never been more optimistic about the future of her business.

Switching to solar-powered heating for my chicken coops would significantly reduce costs," she tells TRT Afrika.

"But the upfront investment is too high for most of us. If this programme helps with financing, it will be a game-changer."

Pursuit of shared goals

Franklin believes that for the project to work, "all stakeholders — entrepreneurs, financial institutions and policymakers — must come together to make the vision a reality."

The premise is simple but effective. By reducing reliance on unstable grid power and expensive diesel generators, businesses can reinvest savings into growth and job creation. 

"With solar power, I could grow enough crops to feed my family and maintain supply to the market all year," says Lungelo.

For Mkhanda's business, the potential gains are similar. "If we can switch to solar power, it would mean consistent production and more orders fulfilled on time, which in turn translates into consistent profits. I can also hire more workers," he says.

SOURCE:TRT Afrika
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