The Cameroonian state is now in active negotiations to repurchase the 56% stake held by the British group Globeleq in two vital electricity generation companies. Yaoundé is engaged in discussions with the London-based investor regarding the acquisition 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 not yet been submitted, the exchanges are reportedly advanced enough to anticipate a conclusion before the close of 2026.
Key power plants in Cameroon’s energy landscape
The assets involved are of considerable importance to Cameroon’s energy infrastructure. The Kribi gas-fired power plant, operational since 2013 in the Southern region, boasts an installed capacity of 216 megawatts. It serves the Southern interconnected grid, which is the nation’s primary consumption hub. The Dibamba plant, a heavy fuel oil thermal facility situated near Douala, contributes 88 megawatts and acts as crucial backup during peak demand periods or in the event of hydroelectric failures. Together, these installations constitute a significant portion of Cameroon’s national thermal capacity, complementing a system predominantly reliant on hydropower but vulnerable to rainfall fluctuations.
With the Nachtigal dam progressively increasing its output, and full commissioning expected in the near future, Cameroon’s energy equation is shifting. Authorities are strategically repositioning existing thermal capacities within an optimized framework. The Kribi gas plant is envisioned to maintain its foundational role, while Dibamba would increasingly function as an emergency reserve. Regaining capital control over these facilities would empower the state to directly influence operational, maintenance, and pricing decisions.
Strategic implications of the acquisition
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 planned divestment aligns with a broader trend of portfolio restructuring among independent power producers across Africa. These producers face evolving regulatory landscapes and a growing desire from African states to reassert command over their strategic assets. Cameroon is no exception to this dynamic, even as its electricity sector grapples with structural challenges, including the precarious financial health of Sonatrel and accumulating arrears owed to independent producers.
The indicative price of 80 billion FCFA alone raises significant questions about financial closure. The Cameroonian state’s budgetary margins are constrained by debt servicing and commitments made to the International Monetary Fund under its ongoing program. Potential funding avenues include involving multilateral lenders, issuing a dedicated bond on the BEAC regional market, or integrating a substitute technical partner. The chosen legal structure will also influence the tariff trajectory in a country where electricity prices remain regulated, and any increase risks social unrest.
Broader implications for independent power producers in Central Africa
Beyond Cameroon’s specific situation, this operation will be closely monitored by all private investors involved in Independent Power Producer (IPP) projects across Sub-Saharan Africa. Yaoundé’s ability to execute 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 undermine the country’s attractiveness for future private sector financing, particularly at a time when investment needs in generation, transmission, and distribution remain substantial.
However, the tight timeline suggested by sources close to the matter implies that critical issues, especially the definitive valuation and the fate of existing power purchase agreements, must be resolved in the coming months. Discussions are ongoing with an aim for finalization before the end of 2026.