Maputo — The electricity companies of Mozambique and Lesotho, EDM and LEC, signed an agreement in Maputo last Thursday, under which EDM is contracted to sell LEC between 10 and 30 megawatts of power between January and December.
This sale is expected to earn EDM seven million US dollars, 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”.
Asked whether it makes sense for a country which is short of power, such as Mozambique, 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. To overcome this problem, new investment is crucial, which was the justification for selling power to other members of SADC (Southern African Development Community), such as Lesotho.
Tankiso Mots'oikha, the acting managing director of LEC, said 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.
Mots'oikha said 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.