Highlights: 

• British energy firm Savannah Energy nears $65.4M deal to acquire 9.8% stake in Ruzizi III hydroelectric project
• 206 MW power station planned between DRC and Rwanda faces delays due to M23 rebel conflict in eastern DRC
• Deal part of broader regional hydro portfolio, including projects in Uganda and Malawi, financed through new debt facility

British energy company Savannah Energy announced it is close to finalizing a $65.4 million acquisition that would give it a 9.8% indirect stake in the Ruzizi III hydroelectric project straddling the Democratic Republic of Congo and Rwanda. The deal involves purchasing 50.1% of Klinchenberg BV from Norwegian development fund Norfund.

"Completion is not expected before first quarter 2026, with an economic effect date of December 31, 2024," the company stated in a September 19 press release. The transaction's finalization depends on the project's financial close, which includes contingent payments that would only be triggered at that milestone. Originally scheduled for September 30, 2025, the financial close has now been postponed to 2026.

The $760 million Ruzizi III project involves constructing a 206 MW hydroelectric power station on the Ruzizi River between the DRC and Rwanda, with connections also planned for Burundi. The infrastructure will be built in Walungu territory in eastern DRC, where ongoing clashes between the Congolese Armed Forces and M23 rebels are impacting donor commitments and project timelines.

Financial closing will also reconfigure the shareholding structure of project company Ruzizi III Energy Limited, designed as a joint public-private partnership between regional governments and private investors grouped within Ruzizi III Holding Power Company Limited. This vehicle includes SN Power, a TotalEnergies subsidiary, and Industrial Promotion Services from the Aga Khan Group. Private and public shareholders will hold 70% and 30% of REL's capital, respectively.

Beyond Ruzizi III, Savannah Energy is acquiring 13.6% of Uganda's Bujagali hydroelectric project and 12.3% of Malawi's Mpatamanga project. The company plans to finance the deals through a new $37.4 million debt facility from an undisclosed major international bank, supplemented by available cash.

Savannah Energy already operates a gas project in Nigeria and an oil project in Niger. The British company also claims a 41.06% stake in Cameroon Oil Transportation Company, which operates Cameroon's oil export pipeline, though this stake is not recognized by the company's other shareholders.

Timothée Manoke