By Ayanda Dlamini
Eswatini is set to benefit from a new World Bank-backed regional energy initiative that aims to transform Southern Africa’s electricity market, strengthen power trade, and attract private investment into the energy sector.
The World Bank two weeks ago approved the Technical Assistance to the Southern African Power Pool (SAPP) project, also known as RETRADE SAPP.
This move is, according to a press statement issued by the World Bank, expected to promote regional power trading and create opportunities for countries like Eswatini to access more affordable, reliable, and cleaner electricity through cross-border exchanges.
As part of Phase 2 of the Regional Energy Transmission, Trade, and Decarbonization Project (RETRADE-SA MPA), the RETRADE SAPP project aims to enhance regional power market participation and liquidity while supporting member states in preparing for large-scale infrastructure investments that connect national grids.
For Eswatini, a landlocked country that currently imports a large portion of its electricity from South Africa, the project marks a significant move toward energy security and economic development.
By promoting increased regional trade in power, Eswatini will gain better access to renewable electricity and a more stable regional grid, both essential for supporting local industries and the country’s expanding manufacturing and services sectors.
The World Bank will provide $12 million in funding for technical assistance to SAPP and regional groups like the Southern African Development Community (SADC), the Regional Energy Regulators Association of Southern Africa (RERA), and the SADC Centre for Renewable Energy and Energy Efficiency (SACREEE).
The funding includes a $10 million grant from the International Development Association (IDA) and a $2 million grant from the Energy Sector Management Assistance Program (ESMAP).
According to the World Bank’s Vice President for Eastern and Southern Africa, Ndiamé Diop, strengthening regional power grids is crucial for Africa’s long-term economic sustainability.
“The expansion and integration of regional transmission networks is critical to improve the reliability and affordability of electricity in Africa,” he said in the statement.
“This project will strengthen cross-border power trade and private investment, contributing to economic growth and job creation.”
The Southern African Power Pool, which includes Eswatini and 11 other SADC member countries—Angola, Botswana, Democratic Republic of the Congo, Lesotho, Malawi, Mozambique, Namibia, South Africa, Tanzania, Zambia, and Zimbabwe—was created to allow member states to share surplus power and coordinate electricity generation and transmission.
SAPP Coordination Centre Executive Director Steve Dihwa described the initiative as a “major step forward in deepening regional integration in the power sector,” noting that many member countries still face challenges in accessing affordable electricity despite having abundant energy resources.
For Eswatini, the RETRADE SAPP project closely aligns with the country’s development goals under Vision 2022 and ongoing efforts to modernize infrastructure and attract private investment.
The integration of regional power systems is expected to strengthen the country’s trade capacity, particularly in energy-intensive sectors like manufacturing, agro-processing, and information technology.
Ultimately, the RETRADE SAPP project is more than just an energy initiative; it serves as a gateway for Eswatini and its neighbors to share power resources, boost economic competitiveness, and work toward sustainable industrial growth across Southern Africa.