The Cameroonian government has entered an advanced stage of negotiations to acquire the 56% stake held by British energy firm Globeleq in two key electricity generation companies. Reports from economic media indicate that officials in Yaoundé are discussing the repurchase of Globeleq’s shares in Kribi Power Development Company (KPDC) and Dibamba Power Development Company (DPDC). The indicative valuation for this transaction hovers around 80 billion FCFA, equivalent to approximately 138 million US dollars. While no formal offer has been submitted yet, discussions are reportedly progressing well, with a potential conclusion anticipated before the close of 2026.
Critical power plants at the heart of Cameroon’s energy mix
The assets involved are central to Cameroon’s electricity infrastructure. The Kribi gas-fired power plant, operational since 2013 in the Southern region, boasts an installed capacity of 216 megawatts. It serves as a vital contributor to the interconnected Southern grid, which is the nation’s primary consumption hub. Meanwhile, the Dibamba thermal power plant, located near Douala, utilizes heavy fuel oil and generates 88 megawatts. This facility plays a crucial supplementary role, providing power during peak demand periods or when hydroelectric sources experience disruptions. Together, these installations represent a substantial portion of Cameroon’s thermal capacity, complementing a system where hydropower remains dominant but is vulnerable to rainfall fluctuations.
The imminent full commissioning of the Nachtigal dam is set to significantly reshape Cameroon’s energy landscape. Authorities are strategically repositioning existing thermal capacities within an optimized framework. The Kribi gas plant is envisioned to maintain a foundational role, while Dibamba would increasingly function as an emergency backup. Reasserting capital control over these critical facilities would enable the state to directly influence operational decisions, maintenance strategies, and tariff structures.
A highly strategic national energy operation
Globeleq, jointly controlled by the British CDC Group fund and Norway’s Norfund, established its presence in Cameroon in 2014 by acquiring the shares previously owned by AES. This planned divestment aligns with a broader trend of portfolio restructuring among independent power producers across Africa. These companies often face evolving regulatory environments and a growing desire from African states to regain command over their strategic national assets. Cameroon is certainly part of this dynamic, especially as its power 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 significant questions regarding financial closure. The Cameroonian government’s budgetary flexibility is constrained by substantial debt servicing obligations and commitments made to the International Monetary Fund under its current program. Potential funding solutions include arrangements with multilateral lenders, a dedicated bond issuance on the regional Beac market, or the involvement of a substitute technical partner. The chosen legal framework will also influence the tariff trajectory in a country where electricity prices are regulated, and any increases risk provoking social unrest.
A clear signal for independent power producers in Central Africa
Beyond Cameroon’s specific case, this transaction will be closely observed by private investors engaged in independent power projects (IPPs) across Sub-Saharan Africa. Yaoundé’s ability to execute an orderly transaction, accurately value the assets, and ensure operational continuity will send a crucial signal to funds and developers involved in similar ventures in Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly structured agreement or an inadequately managed disengagement could undermine the country’s appeal for future private sector financing, particularly at a time when investment needs in power generation, transmission, and distribution remain considerable.
Nevertheless, the tight timeline suggested by sources close to the discussions implies that sensitive issues, notably the final valuation and the status of existing power purchase agreements, must be resolved in the coming months. Discussions are ongoing, targeting finalization before the end of 2026.
