Energy / 19 Sept 2025

Savannah Energy signs $65.4m deal to acquire stakes in East African hydropower projects

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Savannah Energy signs $65.4m deal to acquire stakes in East African hydropower projects

Savannah Energy PLC has signed a Share Purchase Agreement (SPA) to acquire a 50.1% interest in Klinchenberg BV from Norfund, the Norwegian investment fund for developing countries, in a deal worth up to US$65.4 million.

The agreement, signed on Friday at a ceremony attended by Mr John Humphrey, His Majesty’s Trade Commissioner for Africa, marks Savannah’s entry into Uganda, Burundi, the Democratic Republic of Congo, Malawi and Rwanda.

Klinchenberg, jointly owned by Norfund (50.1%) and British International Investment (49.9%), holds indirect interests in key hydropower assets across East and Central Africa:
13.6% stake in the 255 MW Bujagali hydropower plant (Uganda), 12.3% stake in the 361 MW Mpatamanga project (Malawi), 9.8% stake in the 206 MW Ruzizi III project (Burundi, DRC, Rwanda)

The transaction, which has an effective date of 31 December 2024, is expected to close no earlier than Q1 2026. Savannah will finance the acquisition through a US$37.4 million debt facility arranged by an international bank, alongside existing cash reserves.

For the year ended 31 December 2024, Klinchenberg reported US$17.8 million in net revenues, US$17.4 million income after tax, and US$196.9 million in total assets.

Reacting to the deal, Mr Humphrey said:
“I am delighted to see Savannah Energy PLC, a UK investor, taking a stake in these important renewable energy projects across East and Central Africa. This investment reflects the UK’s commitment to sustainable development on the continent.”

Savannah’s Chief Executive Officer, Mr Andrew Knott, described the acquisition as a strategic entry into Africa’s power market.

“Bujagali is a flagship East African power plant with a proven track record, while Mpatamanga and Ruzizi III are advanced projects expected to deliver affordable electricity to over 30 million people. This is the first of several transactions we plan to announce in the African power space over the next 24 months,” Knott stated.