The Cameroonian state is actively pursuing the acquisition of the 56% stake held by British group Globeleq in two key electricity generation companies. Yaoundé is engaged in discussions with the London-based investor to reclaim its shares in Kribi Power Development Company (KPDC) and Dibamba Power Development Company (DPDC). The indicative valuation for this transaction approaches 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 anticipate a conclusion before the end of 2026.

Critical power plants at the heart of Cameroon’s energy mix

The assets involved are of considerable importance. The Kribi gas-fired plant, operational since 2013 in the Southern region, boasts an installed capacity of 216 megawatts and supplies the Southern interconnected grid, which is the country’s primary consumption hub. The Dibamba plant, a heavy fuel oil thermal facility situated near Douala, provides 88 megawatts and serves as a crucial backup during peak demand periods or in the event of hydroelectric failures. Together, 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.

With the Nachtigal dam progressively ramping up to full operation in the near future, Cameroon’s energy equation is shifting. Authorities are keen to strategically reposition existing thermal capacities within an optimized framework. Under this vision, the Kribi gas plant would maintain its foundational role, while Dibamba would increasingly function as an emergency reserve. Regaining capital control over these vital tools would allow the state to directly influence operational, maintenance, and pricing decisions.

A highly strategic operation for national control

Globeleq, jointly controlled by the British fund CDC Group and Norway’s Norfund, established its presence in Cameroon in 2014 by acquiring shares previously owned 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 landscapes and a growing desire among African states to assert greater 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 its ongoing program. Potential financing scenarios include involvement from multilateral lenders, a dedicated issuance on the regional Beac market, or the introduction 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 social unrest.

A significant signal for central african independent power producers

Beyond Cameroon’s specific situation, this operation will be closely observed by all private investors involved in Independent Power Producer (IPP) projects across Sub-Saharan Africa. Yaoundé’s capacity to execute an orderly transaction, accurately value 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 structured agreement or an ill-managed disengagement could undermine the country’s attractiveness for future private sector financing, at a time when investment needs in generation, transmission, and distribution remain substantial.

The tight timeline mentioned by those close to the negotiations 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 ongoing, targeting a finalization before the end of 2026.