Norfund, the Norwegian development finance institution, has announced the sale of its African hydropower assets to Savannah Energy, completing its strategic exit from SN Power, the renewable energy developer it co-founded with Statkraft.
The transaction involves Norfund’s divestment of its 50.1% stake in Klinchenberg, the holding company for its African hydropower interests. Klinchenberg’s portfolio includes stakes in three major projects:
- Bujagali Hydropower Plant in Uganda,
- Mpatamanga Hydropower Project in Malawi,
- Ruzizi III, a regional initiative involving Rwanda, Burundi, and the Democratic Republic of Congo.
This move follows a series of divestments by Norfund since its sale of SN Power to Scatec in 2020 for NOK 10.9 billion (approximately $1.1 billion). While Norfund retained SN Power’s assets in Panama and Zambia, along with a minority stake in its African operations, it has gradually exited these holdings. The Zambian assets were sold to Globeleq earlier this year, and in 2022, Norfund sold half of Klinchenberg to British International Investment. Additionally, Scatec’s stake in the African projects was sold to TotalEnergies in 2024.
Øystein Øyehaug, Investment Director at Norfund, emphasized the developmental impact of the exit:
When we can sell with solid returns to private actors and mobilize capital for new investments, we contribute even more effectively to development. The annual return of 21% in USD from these projects shows that it is possible to develop profitable energy projects even in some of the world’s most challenging markets.
The capital released from this transaction will be reinvested into new renewable energy initiatives, aligning with Norfund’s mission to drive sustainable growth and expand access to clean energy across emerging markets. This divestment marks a significant milestone in Norfund’s strategy to catalyze private sector investment in renewable energy while reinforcing its role as a pioneer in building commercially viable infrastructure in underserved regions.
