By Mbono Mdluli | 2018-03-12

Government is said to be stalling on project that can see the country earning an income of not less than E28 million per month on pay as you earn (PAYE) taxes.

This money could come from the workforce of about 35 000 to be hired if the project got off the ground.

According to MP Prince Magudvulela, government failing or ignoring to sign a memorandum of understanding (MoU) with other countries, mainly South Africa and Mozambique that would allow Canham Mining International (CMI) to sell electricity from this country to them and others.

CMI has a potential of producing 5 000 megawatts of electricity yet the country needs 500 megawatts to survive.

Prince Magudvulela raised this matter during a debate by MPs who are members of the finance ministry portfolio committee. Prince Magudvulela wondered why government would allow just a piece of paper (the MoU) to deny opportunities to  many Swazis to economically develop themselves. He said this MoU could bring 35 000 job opportunities to Swazis but government seemed not to care about that. The MP said Swaziland Energy Regulatory Authority (SERA) issued a licence to CMI to mine the anthracitic coal in this country in order to produce electricity. It was only the piece of paper that stalled the company from producing the electricity.

 What is more disturbing for the MP is that SERA issued an advertisement about two years ago.

The authority wanted anyone who had an objection to what CMI wanted to do to voice out their concerns. The event was held at Mpaka Railway Hall. Some very important stakeholders did not show up. These stakeholders included Swaziland Electricity Company (SEC), the energy department under the ministry of natural resources and energy, and Swaziland Investment Promotion Authority (SIPA).  Prince Magudvulela said he was worried because SIPA had to be there as this project was a very huge investment.

Opportunities

It would not only open job opportunities to the 35 000 people, but many other industries would be able to make money out of this initiative. Companies could produce food for the workers of the company and some could wash clothes for the workers and make substantial income in the process.

The prince wondered what held government from signing the MoU because it was just a matter of signing the piece of paper.

He was also disturbed by the fact that other companies like JSW form India were given preferential treatment.

Prince Magudvulela moved a motion in Parliament that would compel government to sign the MoU to allow CMI to export electricity to neighbouring countries. Minister for Natural Resources and Energy Jabulile Mashwama is expected to give answers to the House.

CMI has an interest in producing thermal electricity that would be used by the country and sell the remaining power to other countries.

Currently, Independent Power Producers (IPPS) are not allowed to sell electricity on their own to individuals or organisations. The only thing they can do is to produce the electricity and sell it through the Swaziland Electricity Company (SEC).

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