Savannah Energy PLC, the British independent energy company focused on delivering Projects that Matter in Africa, has announced that its wholly owned subsidiary, Savannah Energy EA Limited, has signed a Share Purchase Agreement (SPA) with Norfund, the Norwegian investment fund for developing countries. Under the agreement, Savannah will acquire Norfund’s 50.1% interest in Klinchenberg BV for up to US$65.4 million.
The SPA was signed this morning at a ceremony attended by John Humphrey, His Majesty’s Trade Commissioner for Africa. The transaction marks Savannah’s entry into Uganda, Burundi, the Democratic Republic of Congo, Malawi, and Rwanda.
Klinchenberg is jointly owned by Norfund (50.1%) and British International Investment (49.9%), the UK’s development finance institution. Through Klinchenberg, Savannah will gain indirect stakes in:
- Bujagali Hydropower Plant (Uganda): 13.6% interest in the 255 MW operating run-of-river facility.
- Mpatamanga Hydropower Project (Malawi): 12.3% interest in the 361 MW development.
- Ruzizi III Hydropower Project (Burundi, DRC, Rwanda): 9.8% interest in the 206 MW development.
The agreed consideration includes a US$6.8 million deferred payment due three years post-completion, alongside contingent payments tied to the financial close of Mpatamanga and Ruzizi III. Completion is expected no earlier than Q1 2026, subject to customary adjustments, with an effective date of 31 December 2024. Funding will come from a new US$37.4 million debt facility arranged by a leading international bank and Savannah’s existing cash resources.
For the year ended 31 December 2024, Klinchenberg reported audited net revenues of US$17.8 million, profit 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 projects that will deliver clean energy and economic opportunities in the region.”
Andrew Knott, CEO of Savannah Energy, said:
“We are delighted to announce 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 track record, while Mpatamanga and Ruzizi III are advanced-stage developments expected to generate competitively priced electricity for over 30 million people. This transaction is the first of several we expect to announce in the African power sector over the next 24 months, forming a platform for both organic and inorganic growth.”
