TDB Group and Anzana Electric Group (“Anzana”) announce the financial close and first utilization of a portfolio project debt package for two run-of-river hydropower projects in Burundi developed by Songa Energy. This USD 35 million 10.65MW long-term debt financing facility represents a first-of-its-kind transaction for Burundi, a market where only about 10% of the population have access to electricity. With less than 100 MW of operational generation capacity, the country’s capacity will be boosted by over 10% through this project alone. Anzana is the sole equity investor in the projects, which were developed under the Public-Private Partnership framework in Burundi.
As a regional multilateral development finance institution, TDB plays a significant role in the electricity sector across Africa. This includes contributing to economic development through financing of renewable energy infrastructure, and facilitating partnerships between governments and private sector players. The Songa Energy projects represent a bright, new chapter in TDB’s support of private power projects in Burundi, home to one of the Bank’s principal offices.
In reaching this milestone, Anzana and TDB collaborated with key partners to enhance the long-term viability and bankability of the Songa Energy projects. This includes leveraging the African Trade & Investment Development Insurance’s (ATIDI) political risk insurance and payment guarantee, via the Regional Liquidity Support Facility (RLSF), to mitigate risk and ensure a stable investment environment. These partnerships play a critical role in securing investor confidence, protecting project revenues, and creating a template to foster more sustainable energy development in Burundi.
The Government of Burundi has played a pivotal role in enabling the success of the Songa Energy projects by fostering a supportive policy and regulatory environment. Through active collaboration with Anzana and its partners, the government, including the ministries in charge of energy, finance, and environment, as well as Burundi’s Public-Private Partnership Unit and the Authority for Regulation of Water and Energy Sectors, has facilitated project approvals and licenses, ensured alignment with national electrification goals, and demonstrated strong commitment to expanding energy access.
“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.
“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” said Brian Kelly, Anzana CEO.
“Songa Energy’s mission is to empower Burundians by developing and implementing hydropower projects to reliably supply the national electricity grid. We are proud to be one of the first independent power producers in Burundi following the 2015 liberalization of the electricity sector, and our partnership with the Government of Burundi represents a transformative leap forward for Burundi and Burundians” said Dan Brose, Songa Energy Founder and CEO.
“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. 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” said Manuel Moses, ATIDI CEO.