Savannah Energy Signs $65.4m Deal to Acquire Interests in Three East African Hydropower Projects

Savannah Energy PLC has announced a landmark move into East and Central Africa’s renewable power market, signing a Share Purchase Agreement (SPA) to acquire significant interests in three major hydropower projects across the region.

The British independent energy company, through its wholly owned subsidiary Savannah Energy EA Limited, entered the agreement with Norfund, Norway’s investment fund for developing countries, to acquire its 50.1% stake in Klinchenberg BV for a total consideration of up to US$65.4 million. The SPA was signed at a ceremony attended by John Humphrey, His Majesty’s Trade Commissioner for Africa.

The deal 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 stakes in a portfolio of hydropower assets, including:

• 13.6% indirect interest in the 255 MW Bujagali hydropower plant (Uganda)

• 12.3% indirect interest in the 361 MW Mpatamanga project (Malawi)

• 9.8% indirect interest in the 206 MW Ruzizi III project (Burundi, DRC, Rwanda)

The acquisition structure includes a US$6.8 million deferred cash payment due three years post-completion and contingent payments tied to the financial close of Mpatamanga and Ruzizi III. Completion is subject to customary conditions and is expected no earlier than Q1 2026, with the SPA carrying an effective date of 31 December 2024.

Savannah Energy EA plans to finance the transaction through a new US$37.4 million debt facility secured from a leading international bank, alongside existing cash reserves.

For the year ending 31 December 2024, Klinchenberg reported net revenues of US$17.8 million, post-tax income of US$17.4 million, and total assets valued at US$196.9 million.

Speaking on the development, John 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 and supports projects that will deliver clean energy and economic opportunities in the region.”

Savannah’s CEO, Andrew Knott, described the acquisition as a strategic milestone:

“We are delighted to be announcing our planned entry into the Bujagali, Mpatamanga, and Ruzizi III hydropower projects through the acquisition of Norfund’s interest in Klinchenberg. Bujagali is a flagship East African power plant with a 13-year proven track record, while Mpatamanga and Ruzizi III are advanced-stage developments expected to provide competitively priced electricity to more than 30 million people. This transaction represents the first of several we expect to announce in the next 24 months as we expand in the African power sector.”

Knott added that the deal provides a strong platform for organic and inorganic growth in Savannah’s new regional markets and expressed gratitude to the company’s teams for their role in executing the transaction.