| Africa
continue to generate clean energy efficiently and sustainably for years to come.” Wilfred van den Bos, Chief Investment Officer of
Serengeti Energy, added the transaction with Investec demonstrates the strength of structured financing in the renewable energy sector. In October 2025, Serengeti Energy also announced that the Boston Hydro Project had achieved commercial pperations. Following 23 months of construction, this US$23 million hydropower facility is the company’s fourth hydropower project in South Africa. The project benefitted from the ongoing liberalisation of the South African power sector by entering into an off-take agreement with Etana Energy, a power trader. The power purchase agreement is based on a fully commercial willing buyer/willing seller arrangement and is not subject to any regulatory tariff constraints. Over its lifetime, Boston Hydro is expected to avoid emissions while
approximately 1.5 million tons of CO2
generating around 30GWh per year. Despite weather-related challenges the project team successfully completed all powerhouse, civil, and electromechanical works, including turbine installation and architectural finishes on budget. A series of rigorous commissioning and performance tests culminated in successful grid synchronisation in August 2025 and subsequent Grid Code compliance certification by Eskom, confirming the plant’s readiness for operation. Anton-Louis Olivier, CEO of Serengeti Energy, commented: “Boston Hydro is a key milestone that reflects our team’s hydropower and commercial expertise and demonstrates our ability to deliver a technically complex project and an innovative offtake and financing structure.”
African action plan As the IHA acknowledged in its World Hydropower
Outlook Report for 2025, although Africa has a significant pipeline of approved hydropower projects, key challenges remain in reaching financial investment decision and progressing to construction. According to the IHA, several barriers that can continue to stall progress at the financing stage include:
● Offtake risk. ● High foreign exchange hedging costs. ● Persistent concerns among lenders regarding project bankability and risk exposure.
Without targeted interventions, the IHA warns these constraints will continue to delay delivery. In an effort to address these challenges, the association
launched the Abuja Action Plan in May 2024 which outlines practical recommendations to de-risk projects, attract finance and accelerate delivery. If implemented, it could transform the investment landscape and secure the long-term future of hydropower in Africa.
include: ● African governments are called on to recognise and champion sustainable hydropower as a clean, green, modern and affordable solution to provision of secure electricity supply. They’re also recommended to make clear long-term plans for the development of renewable energy, including targets for the development of hydropower, and are encouraged to
Key points of the Abuja Action Plan
www.waterpowermagazine.com | January 2026 | 23
Figuring out African hydropower
● 47GW of total installed capacity ● 167TWh of generation in 2024 ● 3726MW of total pumped storage installed capacity
Top five countries by capacity added in 2024: 1. Tanzania – 1880MW 2. Ethiopia – 1200MW 3. Uganda – 605MW 4. Morocco – 349MW 5. Cameroon – 300MW
Top ten countries ranked by total installed hydropower capacity: 1. Ethiopia – 6024MW 2. Angola – 3890MW 3. South Africa -3600MW 4. DR Congo – 3216MW 5. Zambia – 3164MW 6. Nigeria – 2851MW 7. Egypt – 2832MW 8. Tanzania – 2704MW 9. Morocco – 2585MW 10. Mozambique – 2216MW
All data courtesy of IHA’s 2025 World Hydropower Outlook
speed up permitting of projects, while also improving the quality of decisions.
● All actors are called on to recognise and reward hydropower’s role as an enabler of variable renewable energies and prioritise this technology accordingly. They’re also urged to implement policies that support decarbonisation by advancing sustainable hydropower projects.
● All companies planning, constructing and operating hydropower projects in Africa should do so in accordance with international good practice as defined by the Hydropower Sustainability Standard.
● Furthermore, governments are encouraged to support the commitment to good practice by expediting projects that are certified under the standard.
Below: Dam construction in Angola. Surplus hydropower will be transmitted via a new link to help ease shortages in the DRC
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