The Cameroonian state is now in an active phase of discussions to acquire the 56% stake held by the British group Globeleq in two critical electricity generation companies. Authorities in Yaoundé are currently negotiating with the London-based investor to take over 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 no formal offer has been officially submitted, the ongoing exchanges are reportedly advanced enough to foresee a potential conclusion by the end of 2026.
Two power plants central to Cameroon’s energy mix
These assets are far from insignificant. The Kribi gas-fired power plant, operational since 2013 in the Southern region, boasts an installed capacity of 216 megawatts, supplying the Southern interconnected grid, which serves as the nation’s primary consumption hub. Meanwhile, the Dibamba plant, a heavy fuel oil thermal facility located near Douala, generates 88 megawatts and serves a crucial supplementary role during peak demand periods or in instances of hydroelectric system failures. Collectively, these installations contribute substantially to the national thermal capacity, within an energy framework where hydropower remains dominant yet susceptible to rainfall variations.
The gradual commissioning of the Nachtigal dam, anticipated to be fully operational in the near future, is poised to reshape Cameroon’s energy landscape. Consequently, authorities are focused on strategically re-evaluating and optimizing existing thermal capacities. The vision sees Kribi’s gas plant maintaining a foundational role, while Dibamba would increasingly function as an emergency backup. Reclaiming capital control over these vital facilities would empower the state to directly influence operational, maintenance, and pricing decisions.
A highly strategic operation
Globeleq, jointly overseen by the British fund CDC Group and Norway’s Norfund, established its presence in Cameroon in 2014 by acquiring the stakes previously held by AES. This planned divestment aligns with a broader trend of portfolio restructuring among independent power producers across Africa. These producers often face evolving regulatory environments and a growing desire from African nations to regain control over their strategic assets. Cameroon is certainly part of this trend, particularly as its electricity sector continues to contend with structural challenges, including the precarious financial state of Sonatrel and outstanding debts owed to independent producers.
The indicative price tag of 80 billion FCFA alone raises significant questions regarding financial closure. The Cameroonian state’s budgetary flexibility is constrained by its debt servicing obligations and commitments made to the International Monetary Fund under its current program. Several financing scenarios are being considered, including arrangements involving multilateral donors, a dedicated issuance on the regional BEAC market, or the introduction of a new technical partner. The ultimate legal structure chosen for the acquisition will also directly influence future tariff adjustments in a country where electricity prices are regulated, and any increase carries the risk of social unrest.
A signal for independent producers in Central Africa
Beyond Cameroon’s specific situation, this transaction will be closely observed by all private investors involved 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 crucial message to funds and developers engaged in similar ventures in nations such as Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly structured agreement or an inadequately managed disengagement could diminish the country’s appeal for future private sector financing, especially at a time when investment needs in power generation, transmission, and distribution remain substantial.
Nevertheless, the tight timeline suggested by those familiar with the matter indicates that critical issues, particularly the definitive valuation and the future of existing power purchase agreements, must be resolved within the coming months. Discussions are ongoing with the aim of finalizing the deal before the close of 2026.
