September 19, 2025
Norfund is selling its hydropower assets in Africa to Savannah Energy, completing its exit from what was formerly SN Power, built in partnership with Statkraft.
“When we can sell with solid returns to private actors and mobilize capital for new investments, we contribute even more effectively to development,”
Øystein øyehaug, investment director at norfund
Norfund is selling its 50.1% ownership in Klinchenberg, which was established to manage Norfund’s hydropower holdings in Africa after other parts of SN Power were sold in 2021. The company holds stakes in three hydropower projects: Bujagali in Uganda, Mpatamanga in Malawi, and Ruzizi III – a collaboration between Rwanda, Burundi, and the Democratic Republic of Congo.
“These projects help ensure stable power supply in Uganda, support the development of Malawi’s largest power plant, and strengthen regional cooperation that has been a key part of peacebuilding in a turbulent region,” says Øyehaug.
Long-term and profitable commitment to hydropower
After building SN Power into a leading hydropower company in developing countries, Norfund sold the company to Scatec for NOK 10.9 billion in 2020. Norfund retained ownership of SN Power’s facilities in Panama and Zambia, and 49% of remaining projects in Africa.
“Through the development and sale of these projects, we’ve helped mobilize significant private capital in a region that rarely succeeds in attracting private investment,” says Øyehaug.
The facilities in Zambia were sold earlier this year to Globeleq. In 2022, half of Klinchenberg was sold to British International Investment (BII). Scatec’s share in the African projects formerly part of SN Power was sold earlier this year to TotalEnergies.
“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 we free up will be reinvested in new projects that contribute to sustainable growth,” says Øyehaug.
