For Norfund, it’s the end of an era and the start of another. With the sale of its African hydropower portfolio to Savannah Energy, the Norwegian investor frees up capital to seed the next wave of green energy investments.
This transaction marks the completion of Norfund’s full divestment from SN Power, the pioneering renewable energy developer it co-founded with Statkraft nearly two decades ago.
Valued at USD 65 million, the deal underscores the shifting dynamics in investment in renewable energy by country, particularly across Africa’s sustainable infrastructure landscape.
The Legacy of SN Power
Norfund’s journey with SN Power began in 2002 as a bold partnership with Statkraft, Norway’s state-owned energy giant and a leader among renewable energy companies in Kenya and beyond.
The duo aimed to harness hydropower’s potential in emerging markets, where reliable, clean energy remains scarce.
Over the years, SN Power grew into a powerhouse, developing over 2.5 gigawatts (GW) of capacity across Latin America, Asia, and Africa.
In Africa, it pioneered projects that lit up communities and powered industries, mobilising billions in private capital for a sector often overlooked by green energy investment funds.
By 2020, Norfund had sold the bulk of SN Power to Scatec, a leader among top renewable energy companies in Kenya, for NOK 10.9 billion (approximately USD 1.1 billion), retaining select assets to focus on high-impact regions.
This included a 49% stake in African operations and full ownership of facilities in Panama and Zambia. Subsequent deals further streamlined holdings: In 2021, Zambian assets went to Globeleq, and earlier this year, Scatec offloaded its African shares to TotalEnergies for USD 167 million.
These moves generated impressive returns of 21% annually in USD while advancing Norfund’s mandate to combat poverty through sustainable investments, aligning with the mission of Norfund renewable energy initiatives.
The latest sale targets Norfund’s 50.1% stake in Klinchenberg BV, a special-purpose vehicle housing its African portfolio.
This includes indirect interests in three flagship projects:
- Bujagali Hydropower Plant (Uganda): A 250 MW facility operational since 2012, supplying 25% of Uganda’s electricity and preventing over 1.5 million tons of CO₂ emissions annually.
- Mpatamanga Hydropower Project (Malawi): A 361 MW development in the Shire River basin, set for completion by 2028, promising to double Malawi’s power capacity.
- Ruzizi III Hydropower Project: A 294 MW cross-border initiative shared by Rwanda, Burundi, and the Democratic Republic of Congo, addressing chronic energy deficits in the Great Lakes region.
These assets, totalling around 900 MW in potential capacity, represent a cornerstone of Africa’s renewable energy transition, bolstered by firms like Milele Energy, which continue to drive regional progress.
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Deal Details and Financial Spotlight
Savannah Energy, a UK-based, Africa-focused independent energy firm listed on the London Stock Exchange (LON: SAVE), will acquire the Klinchenberg stake via a Share Purchase Agreement (SPA).
The USD 65 million investment not only secures Savannah’s entry into renewables but also strengthens its portfolio, which spans oil, gas, and now hydropower across 10 African countries.
The transaction, expected to close by year-end pending regulatory approvals, aligns with the growing interest in green energy investments careers as professionals seek roles in sustainable development.
Financially, the sale reflects Norfund’s track record of value creation. Since inception, SN Power-related exits have returned over USD 1.5 billion to Norfund, enabling reinvestment in 700+ projects worldwide.
For Savannah, the acquisition diversifies its energy mix amid global decarbonisation pressures, positioning it as a key player in just energy transitions and clean energy investments across Africa.
Strategic Shifts
Norfund’s decision reflects a maturing strategy. “This divestment frees up capital to pursue new opportunities in sustainable growth,” stated Norfund’s leadership in the announcement.
With Africa’s energy demand projected to surge 80% by 2040, driven by urbanisation and industrialisation, the institution eyes sectors like climate tech and agribusiness.
Proceeds will fund ventures aligning with UN Sustainable Development Goals, emphasising additionality in underserved markets.
For Savannah Energy, the move amplifies its renewable footprint. CEO Chris Cole called it a “milestone” in expanding clean energy access, complementing assets like the Senegalese gas fields.
This comes as international financiers, curious about who owns green energy investments, increasingly partner with local operators to de-risk projects amid geopolitical tensions and climate finance pledges at COP29.
Broader Implications for African Renewables
This transaction highlights Africa’s hydropower renaissance. The continent holds 25% of global potential but taps only 11%, per the International Hydropower Association.
Deals like this catalyse private investment, crucial as multilateral funding declines. Yet challenges persist:Community displacement, environmental safeguards, and grid integration demand vigilant oversight.
As Norfund pivots, its SN Power legacy endures, empowering 50 million Africans with clean power. For investors eyeing ESG opportunities, Savannah’s bold step signals untapped potential in African infrastructure.
In a world racing toward net-zero, such exits aren’t endings but enablers of bolder green energy investments, paving the way for firms like Milele Energy and other renewable energy companies in Kenya to shape the continent’s sustainable future.
Frequently Asked Questions (FAQs)
What is SN Power?
SN Power was a renewable energy developer co-founded by Norfund and Statkraft in 2002, focusing on hydropower projects in emerging markets. It developed over 2.5 GW of capacity across Latin America, Asia, and Africa before Norfund’s phased divestment, culminating in the 2025 sale of its African portfolio to Savannah Energy.
Who owns the Norfund?
Norfund, the Norwegian Investment Fund for Developing Countries, is wholly owned by the Norwegian government. It operates under the Ministry of Foreign Affairs to promote sustainable business development in emerging markets.
Who is the CEO of Norfund?
As of 2025, Kjetil Ebbesberg is the CEO of Norfund, leading its strategic initiatives in sustainable investments across renewable energy, agribusiness, and financial inclusion.
What countries is Norfund in?
Norfund operates in over 30 countries, primarily in Sub-Saharan Africa, Southeast Asia, and Latin America. Key focus countries include Uganda, Malawi, Rwanda, Burundi, the Democratic Republic of Congo, Kenya, Zambia, and Panama, among others.
How big is Norfund’s portfolio?
Norfund’s portfolio exceeds USD 3 billion, with investments in over 700 projects worldwide, spanning renewable energy, agribusiness, and financial institutions, aimed at fostering sustainable development and poverty reduction.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
