The Cameroonian state is now actively pursuing the acquisition of a 56% stake held by the British firm Globeleq in two pivotal electricity generation companies. Officials in Yaoundé are engaging in discussions with the London-based investor to reclaim its interests in both the Kribi Power Development Company (KPDC) and the Dibamba Power Development Company (DPDC). The proposed transaction carries an estimated value of approximately 80 billion FCFA, equivalent to about 138 million US dollars. While a formal offer has yet to be submitted, negotiations are reportedly well underway, with an anticipated finalization target set before the close of 2026.
Key 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. It serves the vital Southern interconnected network, the nation’s primary consumption hub. Meanwhile, the Dibamba thermal plant, located near Douala, operates on heavy fuel oil, generating 88 megawatts. This facility provides crucial backup during peak demand periods or in instances of hydroelectric system failures. Collectively, these installations contribute substantially to Cameroon’s thermal generation capacity, within an energy framework predominantly reliant on hydropower, which is inherently susceptible to rainfall variability.
The gradual ramp-up of the Nachtigal dam, with its full commissioning expected in the near future, is poised to reshape Cameroon’s energy landscape. Authorities are focused on strategically re-evaluating and optimizing the existing thermal capacities. Under this vision, the Kribi gas plant would maintain its foundational role, while Dibamba would increasingly function as a critical emergency reserve. Reasserting capital control over these facilities would empower the state to more directly influence operational, maintenance, and pricing decisions, a key aspect of Africa politics English discussions around energy sovereignty.
A highly strategic operation
Globeleq, under the control of the British fund CDC Group and Norway’s Norfund, established its presence in Cameroon in 2014 by acquiring stakes previously held by AES. This planned divestment aligns with a broader trend of portfolio restructuring among independent power producers across Africa. These producers are navigating evolving regulatory environments and the increasing determination of African states to regain command over their vital strategic assets. Cameroon is certainly part of this dynamic, even as its electricity sector grapples with persistent structural challenges, including the precarious financial health of Sonatrel and significant outstanding payments owed to independent generators.
The indicative price tag of 80 billion FCFA alone raises significant questions regarding financial closure. The Cameroonian state’s budgetary flexibility is restricted by its debt servicing obligations and commitments made to the International Monetary Fund under its ongoing program. Several financing options are being considered, including arrangements involving multilateral lenders, a specialized bond issuance on the regional BEAC market, or the introduction of a substitute technical partner. The ultimate legal structure of the transaction will also influence electricity tariff trajectories in a nation where power prices are regulated, and any increase carries the risk of social unrest, a topic often covered in African news today.
Beyond Cameroon’s specific situation, this transaction will be closely watched by all private investors engaged in Independent Power Producer (IPP) projects across Sub-Saharan Africa. Yaoundé’s ability to execute an orderly deal, accurately value the assets, and ensure operational continuity will send a crucial message to funds and developers involved in comparable ventures in Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly structured agreement or an ill-managed divestment could undermine 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 schedule discussed by sources close to the matter suggests 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 objective of reaching finalization before the close of 2026.
