The Cameroonian state is now actively moving forward with its plan to acquire the 56% stake held by the British group Globeleq in two pivotal electricity generation companies. 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). This transaction carries an indicative valuation of approximately 80 billion FCFA, equivalent to about 138 million US dollars. While a formal offer has yet to be submitted, negotiations are progressing well, with an anticipated conclusion before the close of 2026.
Two pivotal power plants for Cameroon’s electricity mix
The assets involved hold significant importance. The Kribi gas-fired power plant, operational since 2013 in the Southern region, boasts an installed capacity of 216 megawatts. It serves as a crucial power source for the Southern interconnected grid, which is the nation’s primary consumption hub. Meanwhile, the Dibamba plant, a heavy fuel oil thermal facility located near Douala, contributes 88 megawatts and functions as a vital backup during periods of peak demand or in the event of hydroelectric system failures. Together, these installations represent a substantial portion of Cameroon’s thermal capacity within an energy system where hydropower remains dominant but is susceptible to rainfall fluctuations.
With the Nachtigal dam progressively ramping up its output, and its full commissioning expected in the near future, Cameroon’s energy landscape is undergoing a transformation. Authorities are actively seeking to strategically reposition existing thermal capacities within an optimized framework. In this new configuration, the Kribi gas plant is envisioned to maintain its foundational role, while Dibamba would increasingly serve as an emergency reserve. Reclaiming capital control over these critical facilities would empower the state to directly influence operational decisions, maintenance strategies, and pricing policies.
A highly strategic operation unfolding
Globeleq, which is controlled by the British fund CDC Group and the Norwegian Norfund, established its presence in Cameroon in 2014 by acquiring the shares previously held by AES. This planned 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 desire among African states to regain control over their strategic assets. Cameroon is certainly part of this dynamic, even as its electricity sector continues to grapple with structural challenges, including the precarious financial health of Sonatrel and accumulated arrears owed to independent producers.
The indicative price of 80 billion FCFA alone 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. Several plausible financing hypotheses are being considered, including arrangements involving multilateral lenders, a dedicated 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 are administered, and any increase carries the risk of social unrest.
A significant signal for independent power producers in Central Africa
Beyond Cameroon’s specific situation, this operation will be closely watched by all private investors active in Independent Power Producer (IPP) projects across Sub-Saharan Africa. Yaoundé’s ability to successfully execute an orderly transaction, accurately value the assets, and ensure operational continuity will send a clear message to funds and developers involved in similar projects in Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly structured agreement or an ill-managed disengagement could undermine the country’s attractiveness for future private sector financing, particularly at a time when investment needs in generation, transmission, and distribution remain substantial.
Nevertheless, the tight timeline I’ve gathered from sources close to the matter suggests that sensitive issues, especially the definitive valuation and the fate of existing power purchase agreements, must be resolved in the coming months. Discussions are progressing towards a finalization before the end of 2026.