Small businesses in Eswatini are struggling with frequent power cuts and rising energy costs, but a fresh initiative is offering renewable energy solutions that could change their future.
By moving away from unreliable grid electricity and costly diesel generators, entrepreneurs can now look forward to reinvesting their savings into expanding their businesses and creating more jobs.
Lungelo Kunene, who operates a vegetable farm in Eswatini, faces daily challenges due to erratic electricity supply and high fuel prices. Her crops require consistent irrigation, but the rising cost of diesel to run her water pumps has slashed her profits.
“Last season, I lost half of my tomato crop because I couldn’t afford diesel for irrigation,” she told.
Her experience is shared by many across Eswatini’s economy, where small businesses are the lifeblood of the nation. Mkhanda Vilane, who runs a textile workshop in Manzini, also struggles with frequent blackouts that disrupt production and delay deliveries.
“We lose hours of work during power cuts,” he said. “I have missed several deadlines and lost money.”
A new European Union-funded initiative aims to turn things around for business owners like Lungelo and Mkhanda. A grant of $880,000 will support micro, small, and medium enterprises (MSMEs) in adopting renewable energy technologies to help overcome long-standing challenges.
In a country where moving from rainfed agriculture to irrigation is vital for better harvests, the cost of energy has been a major obstacle.
Long-Term Solutions
The four-year CREATE programme is set to help farmers, agribusinesses, and manufacturers integrate solar energy, biogas, and other sustainable technologies into their operations, cutting costs and improving reliability.
Government officials, in partnership with the United Nations Development Programme (UNDP) and Catalyze Eswatini, a local nonprofit, are working together to roll out these energy solutions. From strategic planning in government offices to installing solar panels in rural areas, the goal is to transform plans into tangible results.
Dr Tambo Gina, Eswatini’s Minister of Economic Planning and Development, highlighted the project’s alignment with international development goals during its launch in Mbabane in March.
“Our partnership with the EU is designed to help small businesses operate more efficiently and sustainably,” he said.
Supporting Women to Grow Businesses
The plan also aims to support women entrepreneurs, with at least 40 percent of the businesses benefiting from the programme expected to be women-led.
Henrik Franklin, UNDP’s resident representative, noted that women often face greater barriers to accessing finance and technology. “This project will help close that gap and enable women to grow their businesses and drive innovation,” he said.
Alile Nkosi, a poultry farmer in Siteki, is among those who are hopeful. She believes that switching to solar-powered heating for her chicken coops would significantly cut her costs.
“The upfront costs are a hurdle, but if this programme provides financial support, it could be a real turning point,” she said.
For Franklin, collaboration is key. “Entrepreneurs, financial institutions, and policymakers all need to work together to make this vision a reality,” he said.
The idea is simple: by reducing dependence on unstable and expensive energy sources, businesses can redirect resources into expansion and job creation.
“For me, solar power would mean stable irrigation and year-round market supply,” said Lungelo.
Mkhanda added, “Reliable energy would allow me to increase production, meet deadlines, and grow my team.”