The Cameroonian state is advancing its plans to repurchase a significant stake from the British energy firm Globeleq, encompassing its holdings in two critical electricity production companies. Yaoundé is currently engaged in active discussions with the London-based investor to acquire its 56% shares in Kribi Power Development Company (KPDC) and Dibamba Power Development Company (DPDC). An 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 tabled, negotiations are reportedly well-advanced, with both parties aiming for a conclusion by the end of 2026.
Central to Cameroon’s electricity supply
These assets are undeniably crucial to Cameroon’s energy landscape. The Kribi gas-fired power plant, which commenced operations in 2013 within the Southern region, boasts an installed capacity of 216 megawatts. It serves as a primary power source for the Southern interconnected network, the nation’s largest consumption hub. Similarly, the Dibamba thermal plant, fueled by heavy oil and located near Douala, contributes 88 megawatts, playing an essential backup role during periods of peak demand or in the event of hydroelectric system failures. Collectively, these facilities represent a substantial portion of the country’s thermal generation capacity, complementing a predominantly hydraulic system that remains vulnerable to fluctuating rainfall patterns.
The gradual commissioning of the Nachtigal dam, expected to reach full operational status in the near future, is set to significantly alter Cameroon’s energy equation. Authorities are strategically repositioning existing thermal capacities to create an optimized energy mix. Kribi is envisioned to maintain its role as a base-load power provider, while Dibamba would increasingly function as an emergency reserve. Reacquiring capitalist control over these vital tools would grant the state direct authority over key operational, maintenance, and pricing decisions.
A highly strategic national endeavor
Globeleq, a company backed by the British CDC Group and Norway’s Norfund, initially established its presence in Cameroon in 2014 by acquiring shares previously held by AES. This proposed divestiture aligns with a broader trend of portfolio restructuring among independent power producers across the African continent. These firms are navigating evolving regulatory frameworks and the increasing resolve of African nations to reclaim stewardship over their strategic assets. Cameroon is no exception to this dynamic, especially as its power sector continues to grapple with persistent structural challenges, including the precarious financial health of Sonatrel and outstanding arrears 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 substantial debt servicing obligations and commitments made to the International Monetary Fund under its ongoing program. Plausible financing scenarios include involvement from multilateral lenders, a dedicated bond issuance on the regional BEAC market, or the introduction of a substitute technical partner. The ultimate legal structure chosen for the acquisition will also directly influence tariff trajectories in a country where electricity prices are regulated, and any increases risk triggering social unrest.
A signal for independent power producers in Central Africa
Beyond Cameroon’s specific circumstances, this transaction will be closely scrutinized by private investors engaged in independent power projects (IPPs) across Sub-Saharan Africa. Yaoundé’s ability to execute an orderly transaction, ensure a fair valuation of the assets, and maintain operational continuity will send a clear message to funds and developers involved in similar ventures in nations like Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly structured agreement or an ill-managed disengagement could diminish the country’s appeal for future private sector financing, particularly at a time when investment needs in generation, transmission, and distribution remain considerable.
Nevertheless, the tight timeline suggested by sources close to the negotiations implies that critical issues, particularly the definitive valuation and the fate of existing power purchase agreements, must be resolved in the coming months. Discussions are ongoing, with the objective of finalizing the deal before the close of 2026.
