UK integrated energy firm, Savannah Energy PLC, has announced a landmark acquisition of interests in three East African renewable energy projects, totalling $65.4 million.
The move marks a strategic expansion of Savannah’s footprint in the continent’s fast-growing power sector.
A press statement issued by the company on Friday revealed it has signed a Share Purchase Agreement (SPA) with Norfund, the Norwegian investment fund for developing countries, to acquire its current 50.1% interest in Klinchenberg BV for a total consideration of up to $65.4 million.
“We are delighted to announce our entry into the East African power market. These projects align perfectly with our strategy to deliver affordable and reliable energy across Africa,” said Andrew Knott, Savannah Energy CEO.
Klinchenberg is a joint venture company currently owned by Norfund (50.1%) and British International Investment (BII) (49.9%), the UK’s development finance institution.
Assets covered by the SPA
The acquisition includes stakes in:
- Rwanda’s Ruzizi III Hydropower Project
- Uganda’s Nyamwamba II Hydropower Project
- Tanzania’s Kikuletwa Hydropower Project
The company stated that the projects are at various stages of development, with Ruzizi III being the most advanced.
The $760 million Ruzizi hydro project is on the river between Rwanda and the Democratic Republic of the Congo. And the UK’s Anzana Group in June revealed its intention to fund its construction after long delays.
“The project will nearly double Burundi’s current capacity, boost Rwanda’s by 30%, and deliver critical baseload and dispatchable power to eastern DRC, advancing economic growth, regional integration, and energy security in one of Africa’s most underserved regions”, Anzana stated.
Savannah Energy will acquire the interests from A.E.S. Holdings Limited, a subsidiary of Aqua Munda AG, through a mix of cash and shares.
The consideration will be funded by Savannah Energy EA through a new $37.4 million debt facility, arranged by a leading international bank, and the existing cash resources of the company.
Other indirect interests
The deal also grants Savannah access to Klinchenberg’s interests in a portfolio of hydropower assets, including;
- an indirect 13.6% interest in the operating 255 MW Bujagali run-of-river hydropower plant (Bujagali) in Uganda
- an indirect 12.3% interest in the 361 MW Mpatamanga hydropower development project (Mpatamanga) in Malawi
- an indirect 9.8% interest in the 206 MW Ruzizi III hydropower development project (Ruzizi III) spanning Burundi, the Democratic Republic of the Congo and Rwanda
The deal is subject to regulatory approvals and customary closing conditions. It is expected to be completed no earlier than Q1 2026, although the SPA has an economic effective date of 31 December 2024.
However, the acquisition complements Savannah’s existing operations in Nigeria and Chad, as the UK-listed company finds new markets on the continent through its “projects that matter” initiative.
The British company, which already supports over 20% of Nigeria’s power plants, recently commissioned a $45 million gas compression unit in the country.
