EU Ambassador to Eswatini, Karsten Mecklenburg, signed the grant agreement along with the Minister of Economic Planning and Development, Dr Tambo Gina, UNDP Resident Representative, Henrik Franklin and a representative of the Ministry of Natural Resources and Energy.

This four-year initiative (2025 – 2028) seeks to support Micro, Small and Medium Enterprises (MSMEs), small-holder farmers and agribusinesses in adopting energy and energy efficient solutions thus ensuring economic empowerment, reducing business costs, improving financial access for MSMEs and contributing to job creation.

The project, to be implemented through UNDP and Catalyze Eswatini, will provide tailor-made support to smallholder farmers, farmer companies, women, youth and people living in vulnerable situations by ensuring renewable energy and energy efficiency investments as well as business ideas, especially on the productive use of renewable energy.

It will also place women-led MSMEs at the forefront of Eswatini’s transition and ensuring that at least 40% of the supported businesses are owned or led by women.

As such, the project will break down barriers to finance, technology and clean energy solutions, thus enabling women entrepreneurs to scale up their businesses, drive innovation and strengthen economic resilience.

Speaking during the occasion, EU Ambassador, Mecklenburg, said the project follows a Call for Proposals launched in March 2024, which sought to boost the sustainable and inclusive development of key renewable and inclusive development of key value chains via renewable energy and energy efficient investments.

“The key value chains under this action are the ones more important for rural development and trade under the SADC-EU Economic Partnership Agreement (EPA) as well as their potential for sustainable and inclusive growth and job creation,” said Mecklenburg.

Speaking on the same occasion, Minister of Economic Planning and Development, Dr Tambo Gina, appreciated the EU support, saying it was building on a long-standing partnership between the EU and Eswatini, which has existed for over 50 years now.

The Minister highlighted that for the last 15 years alone, the EU has provided up to SZL 6 billion (approx. EURO 300 million) to support Eswatini’s socio-economic development.

He said most of the EU funding has come in the form of grant support, which means that Eswatini is not required to repay the money to the EU.