Savannah Energy PLC, the British independent energy company, announced today that its subsidiary, Savannah Energy EA Limited, will sign a Share Purchase Agreement (SPA) with Norfund to acquire its 50.1% stake in Klinchenberg BV for up to US$65.4 million. The agreement will give Savannah Energy indirect stakes in the Bujagali, Mpatamanga and Ruzizi III hydropower projects, expanding the company’s footprint into East and Central Africa.

Klinchenberg is jointly owned by Norfund (50.1%) and British International Investment (BII) (49.9%). The company holds interests in three hydropower projects:

A 13.6% indirect interest in the operating 255MW Bujagali run-of-river plant in Uganda,

A 12.3% indirect interest in the planned 361MW Mpatamanga project in Malawi, and

A 9.8% indirect interest in the planned 206MW Ruzizi III project, spanning Burundi, the Democratic Republic of the Congo, and Rwanda.

The consideration includes a US$6.8 million deferred payment due three years after completion and contingent payments linked to financial close of Mpatamanga and Ruzizi III. The deal is expected to close no earlier than Q1 2026, with an effective economic date of December 31, 2024. Funding will come from a new US$37.4 million debt facility and Savannah’s existing cash resources.

Project Details

Bujagali: Commissioned in 2012 on the Victoria Nile, the 255 MW plant provides about 31% of Uganda’s electricity, generating 1,490 GWh annually. It operates under a US dollar-denominated PPA with Uganda Electricity Transmission Company Limited, valid until 2042.

Mpatamanga: Planned for the Shire River in Malawi, the 361 MW reservoir plant is designed to double Malawi’s generation capacity. Financial close is targeted for 2026.

Ruzizi III: A 206MW run-of-river project on the Ruzizi River, designed to supply Burundi, the DRC, and Rwanda. It is expected to reach financial close in 2026 and would significantly increase installed capacity in the three countries.

For 2024, Klinchenberg reported net revenues of US$17.8 million, income after tax of US$17.4 million, and total assets of US$196.9 million.

John Humphrey, His Majesty’s Trade Commissioner for Africa, 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 the success of projects that will deliver clean energy and economic opportunities in the region.”

Savannah CEO Andrew Knott commented: “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 an excellent 13-year operating and payment track record. Mpatamanga and Ruzizi III are advanced-stage developments which are expected to generate highly competitively priced electricity in their respective countries for the benefit of over 30 million people. Each project has a strong partnership group which we are excited to join. The Transaction marks the first of several transactions that we expect to announce over the course of the next 24 months in the African power space and provides us with a basis for further organic and inorganic growth in each of Uganda, Burundi, the Democratic Republic of the Congo, Malawi and Rwanda." He added that this marked Savannah’s first power sector transaction in Africa and that further deals are expected over the next two years.

Cygnum Capital are proud to have acted as exclusive financial advisor to Savannah Energy PLC' on this acquisition which marks Savannah Energy’s entry into 5 new African markets to help deliver affordable, clean power to more than 30 million people across the region.