Locations
The project is a USD 693,333 Government of Japan-funded initiative implemented by the Eswatini Civil Aviation Authority (ESWACAA) with support from UNDP Eswatini. It seeks to transform King Mswati III International Airport (KMIII) into a demonstration site for Japanese Green Transformation (GX) and Digital Transformation (DX) technologies. The project will introduce renewable energy, smart logistics, cold-chain modernization, and digital coordination systems to improve airport efficiency, lower operational costs, strengthen trade competitiveness, and support export-led economic growth.
The intervention will pilot a 0.2 MW solar photovoltaic system with battery storage, modernize a cargo warehouse with smart technologies, establish a logistics coordination platform, and develop a roadmap for scaling the airport toward a future carbon-neutral and digitally enabled logistics hub.
Background
Although Eswatini has invested significantly in King Mswati III International Airport, the airport remains underutilized as a regional air-cargo gateway due to several persistent challenges:
1. High Energy Costs and Energy Insecurity
Cargo operations, refrigeration systems, lighting, and ICT infrastructure rely heavily on grid electricity and diesel generators.
Rising electricity tariffs and fuel costs increase the cost of doing business and reduce export competitiveness.
Power interruptions threaten cold-chain integrity and can lead to product spoilage, particularly affecting horticulture, pharmaceuticals, processed foods, and other time-sensitive exports.
2. Weak Cold-Chain and Cargo Handling Systems
Inadequate refrigeration, monitoring, and storage systems contribute to post-harvest losses that exceed 30% in some sectors.
Poor temperature control and limited traceability reduce compliance with international export standards and increase rejection risks for exporters.
3. Fragmented Cargo Coordination
Coordination among airport authorities, airlines, customs, freight forwarders, and warehouse operators remains largely manual.
Limited data visibility and inefficient processes lead to longer cargo dwell times and higher transaction costs.
4. Missed Opportunities Under AfCFTA
The African Continental Free Trade Area creates opportunities for export expansion. However, competitiveness increasingly depends on reliable logistics, digital trade systems, and efficient cold chains, areas where KMIII still faces constraints.
Project Outcomes
By the end of the project, KMIII is expected to operate as a more reliable, cost-competitive, and climate-smart air-cargo gateway, strengthening Eswatini’s position in regional and international trade.
The key outcomes are:
1. Reduced Energy Costs and Greater Energy Resilience
Renewable energy will power critical cargo operations.
Reduced dependence on grid electricity and diesel generators.
Lower operational costs and carbon emissions.
2. Improved Cold-Chain Performance
Enhanced refrigeration efficiency and temperature control.
Reduced spoilage and product losses.
Improved compliance with international cargo and export standards.
3. Enhanced Trade Facilitation and Coordination
Better coordination among airport stakeholders.
Reduced cargo dwell times and transaction costs.
Improved transparency and predictability in logistics operations.
4. Increased Export Readiness
Improved reliability of air-cargo services for exporters.
Better support for time-sensitive and high-value products.
Strengthened competitiveness under AfCFTA.
5. Investment-Ready Pathway for Scale-Up
Development of a bankable roadmap to scale renewable energy and smart logistics infrastructure to as much as 5 MW capacity.
Attraction of future public and private investment.
6. Regional Demonstration and Knowledge Hub
Position KMIII as a flagship African demonstration site for Japanese GX–DX technologies.
Generate lessons that can be replicated in airports and Special Economic Zones across Africa.
