The electricity companies of Mozambique and Lesotho, have signed an agreement under which Electricidade de Mocambique (EDM) will sell Lesotho Electricity Company (LEC) between 10 and 30MW of power between January and December this year.
Mozambique News Agency reported that the sale is expected to earn EDM $7 million, and will pave the way for a further agreement covering a longer period.
Cited by the independent television station STV, the EDM chairperson, Mateus Magala, said: “This is not just a transaction, but a development of the relationship between the two countries.”
Responding to a question on whether it makes sense for Mozambique, which is short of power, to be exporting electricity, Magala said the company “needs to invest in electricity infrastructure and that’s why we sell power.”
He said that the poor quality of electricity that causes frequent complaints from consumers is often due to the obsolete state of EDM’s equipment. Read more…
To overcome this problem, new investment is crucial, which was the justification for selling power to other members of the Southern African Development Community, such as Lesotho.
Lesotho Electricity Company underperforming
Also commenting on the new agreement, Tankiso Mots’oikha, the acting managing director of LEC, said the contract with EDM was of great importance for his country.
“You know that electric current is like blood which revives economic growth, and we are very pleased to receive this Mozambican blood”, Mots’oikha said.
He further noted that Lesotho does not produce enough electricity to cover its own needs, hence its need for imports.
He hoped that the 12 month agreement with EDM can be transformed into a long term arrangement.