Our portfolio company, Anzana Electric Group, has raised US$35m in debt funding from Trade and Development Bank Group (TDB) for two hydropower projects in Burundi. The deal represents Burundi’s largest long-term project financing and will play a vital role in a country where only 12% of the population has access to electricity.
The financing will support the construction of the 1.65MW Upper Ruvyironza project and the 9MW Upper Mulembwe project – together, they will boost the country’s energy generation capacity by around 10% and will start supplying the national grid in 2025 and 2027 respectively. Songa Energy, a subsidiary of Anzana Electric Group, is developing both projects.
The projects will also benefit from political risk insurance and payment guarantees from the African Trade & Investment Development Insurance (ATIDI) through the Regional Liquidity Support Facility (RLSF) – this helps mitigate risk and ensure a stable investment environment.
The projects have been developed under Burundi’s public-private-partnership framework, and the national government has provided strong support throughout the process. They will supply over 62 GWh of clean, baseload electricity to the national grid annually.
Songa Energy is part of Anzana Electric Group’s broader portfolio in Burundi. This includes Weza Power – an electricity distribution utility that aims to connect over two thirds of the population (around 9 million people) over the next 7 years.
Gridworks made an equity investment of up to $50 million in Anzana Electric Group in early 2023 and is the company’s largest shareholder. Anzana is using Gridworks’ capital to expand electricity access and drive economic and industrial growth in communities across southern and eastern Africa.
Brian Kelly, CEO of Anzana Electric Group, said:
“The Songa Energy projects represent a transformative step toward bringing affordable, reliable, and sustainable electricity to Burundi. We’re proud to lead this effort alongside TDB and our other partners and are grateful for the unwavering support of the Burundian government to create lasting impact for the country. We look forward to working to expand our partnership with TDB across the region.”
Erik Knive, CEO of Gridworks, said:
“These renewable energy projects will make a significant contribution to energy access and economic development in Burundi. They are a great example of the innovative ways Anzana works with partners to deliver impact for people and businesses.”