Savannah Energy Moves Into East Africa With $65m Hydropower Deal

Savannah Energy PLC has taken a bold step into East and Central Africa’s power sector.

The British company announced that its subsidiary, Savannah Energy EA Limited, has signed a Share Purchase Agreement (SPA) with Norfund, the Norwegian investment fund.

The deal will see Savannah acquire Norfund’s 50.1% interest in Klinchenberg BV for up to US$65.4 million. The SPA was signed at a ceremony attended by John Humphrey, His Majesty’s Trade Commissioner for Africa.

With this signing, Savannah marks its entry into Uganda, Burundi, the Democratic Republic of Congo, Malawi, and Rwanda.

Klinchenberg, jointly owned by Norfund and British International Investment, holds stakes in several hydropower projects. These include a 13.6% interest in the 255 MW Bujagali plant in Uganda, a 12.3% interest in the 361 MW Mpatamanga project in Malawi, and a 9.8% interest in the 206 MW Ruzizi III project spanning Burundi, DRC, and Rwanda.

The payment terms include a US$6.8 million deferred cash element, due three years after completion, and contingent sums linked to financial close of Mpatamanga and Ruzizi III.

Funding and Future Plans

Savannah will finance the acquisition through a US$37.4 million debt facility arranged by a leading international bank, alongside company cash reserves.

Completion is expected no earlier than the first quarter of 2026, though the SPA has an economic effective date of 31 December 2024. Klinchenberg reported net revenues of US$17.8 million and after-tax income of US$17.4 million in 2024.

John Humphrey praised the move: “This investment reflects the UK’s commitment to sustainable development on the continent and supports clean energy and economic opportunities in the region.”

Savannah CEO Andrew Knott described the projects as transformational. “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,” he said.

He added: “Mpatamanga and Ruzizi III are advanced-stage developments expected to generate competitively priced electricity for over 30 million people. The Transaction marks the first of several we expect to announce over the next 24 months in the African power space.”

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