Jubilee has purchased an additional 9.44 percent stake in Uganda-based Bujagali Energy. The stake purchase was made from SN Power for $40 million.
With that, the transaction is expected to increase Jubilee’s shareholding in Bujagali Energy to 18 percent from 8.8 percent. Jubilee Energy is specialised in providing power generation equipment for industrial, residential and commercial fields.
However, SN Energy is still the majority shareholder in the Uganda-based energy firm. It invests in renewable energy on a commercial basis in emerging markets. Group Chairman for the Jubilee Insurance Companies Nizar Juma, told the media, “We are very pleased with this additional investment in Bujagali and we have confidence that it will continue to provide us with stable and consistent returns as has been the case with all our existing investments.”
It is reported that the Bujagali Hydropower Project is recognised to be the most successful public-private partnership in sub-Saharan Africa’s power sector. The project was published in 2012.
Bujagali is significant to Uganda as it contributes 50 percent of the country’s electrical energy requirements, media reports said. Jubilee currently operates in Kenya, Uganda, Tanzania, Burundi and Mauritius. The company is listed on the Nairobi Securities Exchange (NSE).
Bujagali is reported to be the first independent power producer in Uganda.