The Cameroonian state’s acquisition of the 56% stake held by the British group Globeleq in two vital electricity generation companies is now in an active phase. Yaoundé is engaged in discussions with the London-based investor regarding the takeover of its shares in Kribi Power Development Company (KPDC) and Dibamba Power Development Company (DPDC). The indicative valuation for this transaction stands at approximately 80 billion FCFA, equivalent to about 138 million US dollars. While a formal offer has yet to be submitted, the exchanges are reportedly sufficiently advanced, with a potential conclusion anticipated before the close of 2026.
Key power plants central to Cameroon’s energy mix
The assets involved are of considerable significance. The Kribi gas-fired power plant, which commenced operations in 2013 in the Southern region, boasts an installed capacity of 216 megawatts. It serves as a crucial power source for the Southern interconnected grid, the country’s primary consumption hub. Meanwhile, the Dibamba plant, a heavy fuel oil thermal facility situated near Douala, contributes 88 megawatts. This plant plays an essential supplementary role during periods of peak demand or in instances of hydroelectric system failure. Together, these installations represent a substantial portion of the nation’s thermal capacity within an energy system where hydroelectric power remains dominant but is susceptible to rainfall fluctuations.
The progressive ramp-up of the Nachtigal dam, expected to reach full commissioning in the near future, is poised to reshape Cameroon’s energy landscape. Authorities are actively seeking to reposition existing thermal capacities within an optimized framework. Under this strategy, the Kribi gas plant would retain a foundational role, while Dibamba would increasingly function as an emergency backup. Reclaiming capital control over these critical tools would empower the state to directly arbitrate decisions concerning operations, maintenance, and pricing strategies.
A highly strategic operation
Globeleq, under the control of the British fund CDC Group and Norway’s Norfund, established its presence in Cameroon in 2014 by acquiring the shares previously held by AES. This contemplated exit aligns with a broader trend of portfolio restructuring among independent power producers across Africa. These producers are navigating evolving regulatory environments and a growing determination by African states to regain control over their strategic assets. Cameroon is no exception to this dynamic, especially as its electricity sector continues to grapple with structural challenges, including the fragile financial health of Sonatrel and accumulated arrears owed to independent producers.
The indicative price of 80 billion FCFA itself raises questions regarding financial closure. The Cameroonian state’s budgetary margins are constrained by debt servicing obligations and commitments made to the International Monetary Fund under the ongoing program. Plausible financing hypotheses include arrangements involving multilateral lenders, a dedicated bond issuance on the regional BEAC market, or the introduction of a substitute technical partner. The chosen legal structure will also significantly influence the tariff trajectory in a country where electricity prices remain administered, and any increase carries the risk of social tensions.
A signal for independent power producers in Central Africa
Beyond Cameroon’s specific case, this operation will be closely scrutinized by all private investors active in Independent Power Producer (IPP) projects across Sub-Saharan Africa. Yaoundé’s ability to successfully conclude an orderly transaction, accurately value the assets, and ensure operational continuity will send a clear signal to funds and developers engaged in similar projects in Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly structured agreement or an inadequately managed disengagement could diminish the country’s attractiveness for future private sector financing at a time when investment needs in power generation, transmission, and distribution remain considerable.
However, the tight timeline mentioned suggests that sensitive issues, particularly the definitive valuation and the fate of existing power purchase agreements, must be resolved in the coming months. Discussions are progressing with a view to finalization before the end of 2026.
