The electricity companies of Lesotho and Mozambique 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.
The sale is expected to earn EDM $7 million, and will pave the way for a further agreement covering a longer period.
The EDM chairperson, Mateus Magala, said: “This is not just a transaction, but a development of the relationship between the two countries.”
Commenting on the new agreement, Tankiso Motšoikha, the acting managing director of LEC, said the contract with EDM is 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”, Motšoikha said.
He further noted that Lesotho does not produce enough electricity to cover its own needs, hence the need for imports.
He hoped that the 12 month agreement with EDM can be transformed into a long term arrangement.