Africa Development Economy Energy Lesotho Mozambique

Mozambique and Lesotho power utilities ink energy deal

State-run Mozambique power utility, Electricidade de Mocambique (EDM), has agreed to sell between 10 and 30 megawatts of power between January and December this year to the Lesotho Electricity Company (LEC).

According to local media reports, EDM will earn $7 million and the deal will pave the way for a further agreement covering a longer period.

Mozambican television, TVM, reports that the deal has been formalised between EDM chairperson, Mateus Magala, and his Lesotho counterpart, Tankiso Mots’oikha. LEC is battling to keep the lights on in Lesotho, an enclaved, landlocked kingdom country in southern Africa which is completely surrounded by South Africa and has a population slightly over two million.

Magala said the deal makes sense for a country which is also short of power, but his company “needs to invest in electricity infrastructure and that’s why we sell power”. Most of the electricity produced in Lesoth is based on hydro sources and the country requires energy imports from neighbouring countries to meet its demand.
Lesotho produces about 72 MW from hydropower.

Tankiso Mots’oikha believes the contract with EDM was of great importance for Lesotho.

“You know that electric current is like blood which revives economic growth, and we are very pleased to receive this Mozambican blood”, he added. Lesotho does not produce enough electricity to cover its own needs, hence its need for imports, he pointed out.

He hoped that the 12 month agreement with EDM can be transformed into a long term arrangement.
Lesotho’s electricity supply accounts only for 50 percent in the energy mix and its National Policy 2015-2025 is the sector guideline which envisions the development of the renewable energy sector.

Source: Journal du Cameroun

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