The scheme - which should light up 50,000 houses by the year 2000 - is a joint venture between South Africa's electricity supplier, Eskom, and the oil giant Shell.

At the launch ceremony in Bipha village, 100km inland from the coast, President Mandela said solar power was an important electricity source in remote areas.

"To date, 1,300 rural schools and 400 rural health clinics have been electrified using (solar power) ... Another 15,000 schools and 1,600 clinics must still get solar electricity," said President Mandela.

Around two million more homes in South Africa are now served by the country's main electricity grid, doubling the country's number of households with mains supply.

The inauguration of the project comes on the same day as the launch into orbit of the first South African-built satellite.