Rwaza acquisition signing ceremony at Serengeti Energy Headquarters in Nairobi.
Serengeti Energy has acquired a majority stake in Rwaza 1, a 2.6MW run-of-river hydropower plant in Musanze, Rwanda, from Frontier Energy. Rwaza 1 was Serengeti Energy's first operational hydro plant, commissioned in September 2018. The project was developed in partnership with DC Hydropower Limited and Frontier Energy.
In October 2022, Serengeti Energy and Frontier Energy signed a share purchase agreement that initiated the acquisition of Frontier Energy's entire stake in the project. On 29 March 2023, the acquisition was completed, with Bowmans serving as legal transaction advisor.
Serengeti Energy aims to have 300MWs of small to medium-sized projects in its portfolio by 2030 in Sub-Saharan Africa. Becoming the majority owner of Rwaza 1 will support this goal.
Co-CEOs Wilfred van den Bos and Solomon Njonjo said that Serengeti Energy is paving the way for a sustainable future in Sub-Saharan Africa by developing and operating small to medium-sized renewable energy power plants. By becoming the majority owner of Rwaza 1, the company can expand its footprint in Rwanda with the aim of expanding further. They congratulated both the Frontier and Serengeti Energy teams for the successful transaction.
Rwaza Hydro was a very successful investment for Frontier Energy's first fund, which began operations in 2011. The company participated in the development, construction, and operation of the Rwaza hydro project and is now happy to exit the project successfully to Serengeti Energy as Frontier Energy's first fund comes to an end. Founding partners of Frontier Energy, Daniel Schultz and Kim Gredsted, said that "we have had a very good collaboration with Rwaza Hydro and Serengeti Energy about the project and the exit of the project, and we would like to thank them for this and for a job well done."
"The business model of Frontier Energy is to develop, construct, operate and eventually exit renewable energy projects in Sub-Saharan Africa," they continued. "If this is done in the right way, this will benefit not only Frontier Energy in the form of a successful investment but also the environment in terms of green energy and the country which gets more power at an attractive price to the benefit of the population and the development of the country. Rwaza Hydro confirms the win-win-win aspect of our business."
