Madagascar Restructures Sahofika Hydropower Project

Key Figures & Findings: Neo Themis SAR, a project development platform backed by Denham Capital, which focuses on sustainable infrastructure in Africa, and Eranove, a major French-African utility that specializes in managing power and water infrastructure, have restructured the 205 MW Sahofika Hydropower Project in Madagascar, signaling a renewed public-private collaboration model. The Fonds Souverain Malagasy has acquired a 49% equity stake, enhancing local ownership and national strategic alignment.  The new structure is designed to reduce financial risk and increase attractiveness for concessional lenders, including the African Development Bank, EIB, and British International Investment.

Statistics & Insights: The Sahofika plant will supply clean electricity to Madagascar’s national grid and is expected to avoid 1,000,000 tons of CO₂ annually. It will also support biodiversity by preserving 1,091 hectares of forest each year and is projected to alleviate the country’s chronic power shortages through long-term, low-cost hydropower.

Future Implications: With a more attainable financial closure, construction could begin in early 2026, accelerating energy access and reducing Madagascar's diesel reliance. The project’s model could serve as a blueprint for sovereign-backed infrastructure ventures across Africa, especially where concessional finance is key.

Source:  Neo Themis LinkedIn Post