The Cameroonian state’s efforts to acquire the 56% stake held by the British group Globeleq in two vital electricity production companies have entered a decisive phase. Reports from economic circles indicate that Yaoundé is engaged in discussions with the London-based investor regarding the repurchase of its shares in Kribi Power Development Company (KPDC) and Dibamba Power Development Company (DPDC). The indicative valuation for this transaction hovers around 80 billion FCFA, equivalent to approximately 138 million US dollars. While a formal offer has yet to be submitted, exchanges are reportedly advanced enough to foresee a conclusion by the end of 2026.
Key power plants at the heart of Cameroon’s energy mix
The assets under consideration are far from minor. The Kribi gas-fired power plant, operational since 2013 in the Southern region, boasts an installed capacity of 216 megawatts. It is a critical supplier to the Southern interconnected grid, which serves as the country’s primary consumption hub. Meanwhile, the Dibamba plant, a heavy fuel oil thermal facility located near Douala, contributes 88 megawatts. This plant plays a crucial supplementary role during peak demand periods or in instances of hydroelectric system failures. Collectively, these installations represent a significant portion of the national thermal capacity within an energy system where hydropower remains dominant but is susceptible to rainfall fluctuations.
The ongoing commissioning of the Nachtigal dam, expected to be fully operational in the near future, is reshaping Cameroon’s energy landscape. Authorities are actively working to re-position existing thermal capacities within an optimized framework. In this new configuration, Kribi’s gas-fired generation would maintain a base-load function, while Dibamba would increasingly serve as an emergency backup. Reclaiming capital control over these facilities would empower the state to directly influence operational, maintenance, and pricing decisions.
An operation with strong strategic dimensions
Globeleq, under the control of the British fund CDC Group and Norway’s Norfund, established its presence in Cameroon in 2014 by acquiring shares previously held by AES. This anticipated divestment aligns with a broader trend of portfolio restructuring among independent power producers across Africa. These producers are navigating evolving regulatory environments and a growing desire among African states to regain control over their strategic assets. Cameroon is certainly part of this dynamic, even as its electricity sector grapples with structural challenges, including the fragile financial health of Sonatrel and accumulated arrears owed to independent producers.
The indicative price tag of 80 billion FCFA alone raises questions about financial closure. The Cameroonian state’s budgetary margins are constrained by debt servicing obligations and commitments made to the International Monetary Fund under its current program. Several plausible financing hypotheses are being explored, including arrangements involving multilateral lenders, a dedicated issuance on the regional BEAC market, or the entry of a substitute technical partner. The chosen legal structure will also influence tariff trajectories in a country where electricity prices are administered, and any increase risks triggering social tensions.
A signal for independent power producers in central africa
Beyond Cameroon’s specific case, this operation will be closely watched by all private investors involved in Independent Power Producers (IPPs) across Sub-Saharan Africa. Yaoundé’s ability to execute an orderly transaction, accurately value the assets, and ensure operational continuity will send a clear message to funds and developers engaged in similar projects in Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly calibrated agreement or an inadequately managed disengagement could undermine the country’s attractiveness for future private sector financing, especially at a time when investment needs in generation, transmission, and distribution remain substantial.
Nevertheless, the tight timeline suggested by sources close to the matter implies that sensitive issues, particularly the final valuation and the fate of existing power purchase agreements, must be resolved in the coming months. Discussions are reportedly continuing with a view to finalization before the end of 2026.
