Savannah Energy inks SPA for interests in 3 power projects across East, Central Africa

*Savannah Energy EA Limited, a wholly owned subsidiary of Savannah Energy Plc, inks a fresh Share Purchase with Norfund, the Norwegian investment fund for developing countries, to acquire its current 50.1 percent interest in Klinchenberg BV worth about US$65.4 million

Alexander Davis | ConsumerConnect

Savannah Energy Plc, the British independent energy company focused around the delivery of Projects that Matter in Africa, has announced that its wholly owned subsidiary, Savannah Energy EA Limited struck a fresh deal through a Share Purchase Agreement (SPA), in East Africa.

The energy company said it signed the Share Purchase Agreement with Norfund, the Norwegian investment fund for qdeveloping countries, to acquire its current 50.1% interest in Klinchenberg BV for a total consideration of up to US$65.4 million.

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Okwudili Onyia, Communications Manager at Savannah Energy, disclosed the company signed the deal recently at a ceremony attended by John Humphrey, His Majesty’s Trade Commissioner for Africa.

It is noted that the signing marked Savannah’s entry into Uganda, Burundi, the Democratic Republic of Congo, Malawi and Rwanda.

Klinchenberg is a joint venture company currently owned by Norfund (50.1%) and British International Investment (49.9%), the UK’s development finance institution.

Klinchenberg has interests in a portfolio of hydropower assets, namely: an indirect 13.6% interest in the operating 255 MW Bujagali run-of-river hydropower plant in Uganda; an indirect 12.3% interest in the 361 MW Mpatamanga hydropower development project in Malawi; and an indirect 9.8% interest in the 206 MW Ruzizi III hydropower development project spanning Burundi, the Democratic Republic of the Congo and Rwanda. All interests are presented on an expected net to Savannah basis.

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The Consideration includes a US$6.8 million deferred cash element, payable three years post-completion of the Transaction, and contingent payments in respect of Mpatamanga and Ruzizi III payable upon financial close of these projects.

The Transaction is subject to customary adjustments upon completion, and it is expected to complete no earlier than Q1 2026.

According to the company, the SPA had an economic effective date of 31 December, 2024.

The Consideration is expected to be funded by Savannah Energy EA through a new US$37.4 million debt facility, arranged by a leading international bank, and the existing cash resources of the company.

The Transaction constitutes a Substantial Transaction under AIM Rule 12.

Accordingly, the following information is included in accordance with the disclosure requirements of Schedule Four to the AIM Rules for Companies.

For the financial year ended 31 December, 2024, Klinchenberg reported audited net revenues of US$17.8 million, an 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.”

In his remarks on the new transaction, Andrew Knott, Chief Executive Officer (CEO) Savannah, said: “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.”

He stated: “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 Congo, Malawi and Rwanda.”

Knott said: “I would like to thank my incredibly dedicated and passionate colleagues who have worked tirelessly to enable this Transaction to happen and look forward to updating investors on the progress made on each of these large-scale projects over the course of the coming months and years.”

Savannah Energy Plc is a British independent energy company focused around the delivery of Projects that Matter in Africa.

About Run-of-River and Traditional Reservoir Hydropower Projects:

A run-of-river hydropower project generates electricity by channelling part of a river’s natural flow through turbines without the need for a large reservoir, minimising environmental impact and allowing the river to follow its natural course.

In contrast, a traditional reservoir hydropower project relies on a dam to store significant volumes of water, creating a reservoir that can be released as needed to produce power and manage supply.

About Bujagali

Located on the Victoria Nile in eastern Uganda, Bujagali is a 255 MW run-of-river hydropower plant, commissioned in 2012, which contributes approximately 31 percent of Uganda’s effective electricity generation capacity, producing approximately 1,490 GWh of power annually. It benefits from a US dollar-denominated power purchase agreement with the Uganda Electricity Transmission Company Limited, Uganda’s principal power transmission utility, maturing in 2042.

Project partners in Bujagali include a subsidiary of TotalEnergies (the French energy supermajor), BII, AKDN (the Aga Khan Fund for Economic Development), the International Finance Corporation (the “IFC”, a member of the World Bank Group), DEG (the Germany-owned investment company), Jubilee Holdings Limited (the East African financial services conglomerate) and the Government of Uganda.

For more information on Bujagali see: https://www.bujagali-energy.com

About Mpatamanga

Located on the Shire River in southern Malawi, the Mpatamanga hydropower project is a planned 361 MW traditional reservoir power plant. Mpatamanga is designed to double Malawi’s current installed generation capacity and materially reduce dependence on diesel-fired generation. Financial close is targeted for 2026, with the project expected to be financed through a combination of concessional and commercial debt alongside equity contributions from the sponsors, underpinned by World Bank guarantee structures. Once operational, Mpatamanga is expected to deliver robust cash flows through long-term offtake agreements with the Government of Malawi and a US dollar-linked tariff.

Project partners in Mpatamanga include the IFC, EDF (the French utility major), BII, a subsidiary of TotalEnergies and the Government of Malawi.

For more information on Mpatamanga see: https://www.mpatamangahydro.com.

About Ruzizi III

Located on the Ruzizi River between Burundi, the DRC and Rwanda, the Ruzizi III hydropower project is a planned 206 MW run-of-river power plant.

The project is designed to supply electricity to Burundi, the DRC and Rwanda under long-term, government-backed, take-or-pay power purchase agreements, providing predictable US dollar-denominated revenues.

Once operational, Ruzizi III is expected to nearly double Burundi’s electricity generation capacity, increase Rwanda’s installed capacity by approximately 30%, and deliver much-needed reliable baseload power to eastern DRC. Ruzizi III is expected to reach financial close in 2026, supported by a multi-lateral financing package with participation from the World Bank and other development finance institutions.

Project partners in Ruzizi III include a subsidiary of TotalEnergies, BII, AKDN, the IFC, DEG and Energie des Grands Lacs (a specialised regional energy body fostering cross-border economic growth in the Great Lakes region).

For more information on Ruzizi III see: https://ruzizi3.com.

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