The Eastern and Southern African Trade and Development Bank (TDB) has announced the financial close of two hydropower projects with a combined capacity of 10.65MW in Burundi. The projects, 1.65 MW Upper Ruvyironza SHP, and 9.0 MW Upper Mulembwe SHP, will increase Burundi’s installed power generation capacity by 10%, and produce over 62 GWh of electricity annually.
The hydropower projects will be located in South Central Burundi, and are expected to begin producing power for the grid in 2025 and 2027 respectively. The two projects are being developed by Songa Energy, a subsidiary of Anzana Electric Group, under a Public-Private-Partnership framework.
“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,” said Brian Kelly, Anzana CEO.
TDB will provide a US$35 million long-term debt financing facility for the projects, a first-of-its-kind transaction for Burundi where only 10% of the population has access to electricity.
“We are pleased to be partnering with Anzana on this landmark project, which is expected to have a substantial impact, expanding electricity access to over 100,000 Burundian households, supporting up to 500 jobs during peak construction periods, and bringing about knowledge transfer, while aligning with the climate agenda,” said Michael Awori, Trade and Development Banking Chief Executive.
ATIDI’s role in derisking the hydropower projects
The African Trade & Investment Development Insurance (ATIDI) will provide political risk insurance and payment guarantees for the projects. Political risk insurance and payment guarantees are considered essential for derisking projects in many African renewable energy markets to unlock investment and boost investor confidence.
Anzana and TDB said the collaboration with ATIDI will enhance the long-term viability and bankability of the hydropower projects. ATIDI will provide the guarantees via its Regional Liquidity Support Facility (RLSF).
“Having previously announced our support for the 1.65 MW Upper Ruvyironza project with RLSF cover, this latest initiative builds on a trusted partnership that is driving transformative progress in Burundi’s energy sector,” said Manuel Moses, ATIDI CEO.
“This collaboration on the Songa Energy projects underscores our shared commitment to delivering impactful renewable energy solutions across Africa. Working with Governments, investors and our financial and technical partners, we are not only helping to address critical energy needs, but also setting a benchmark for sustainable and inclusive development,” concluded Moses.
