Ubombo Sugar Limited (USL) has begun delivering on its E2.4 billion investment pledge made at the inaugural Eswatini Investment Conference in May 2025.
This week, USL signed a 40MW Power Purchase Agreement (PPA) with the Eswatini Electricity Company (EEC) and an Engineering, Procurement, and Construction (EPC) contract with ISGEC. The agreements establish the foundation for an expanded cogeneration project that will provide 40 megawatts (MW) of renewable energy to the national grid.
The pledged investment, one of the largest commitments announced during the conference, includes a two-phase factory debottlenecking expansion and the development of a large-scale cogeneration plant. USL’s parent company, Associated British Foods PLC, is investing E1.5 billion as part of a strategic plan to boost sugar production capacity and strengthen the company’s renewable energy presence in Eswatini.
The project aligns with USL’s strategic goal to expand its presence in both sugar manufacturing and renewable energy, while making a significant contribution to national development. This clean energy will be fed into the national grid, enhancing Eswatini’s energy security and decreasing dependence on imported energy.
Eswatini Investment Promotion Authority (EIPA) Chief Executive Officer, Sibani Mngomezulu, hailed the milestone as a powerful indicator of investor confidence.
The investment pledge by USL and its move to the implementation phase signals strong trust in Eswatini’s economic future and confidence in the country as an attractive place to invest,” he said.
The successful implementation of this pledge will revolutionize the sugar industry, strengthen national energy security, and create jobs. It also sends a positive message about Eswatini’s ability to host large-scale projects.
Mngomezulu urged all investors who committed during the Investment Conference to expedite their project rollouts, adding that EIPA is prepared to support them throughout the implementation process.
With both the EPC contract and PPA in place, preparations for the cogeneration expansion are expected to move forward quickly, making it one of the largest industrial and energy investments in Eswatini’s recent history.