Cameroon’s strategic move: Yaoundé eyes Globeleq’s power assets
The Cameroonian state is now actively pursuing the acquisition of the 56% stake held by the British group Globeleq in two pivotal electricity generation companies. Discussions are underway between Yaoundé and the London-based investor regarding the repurchase of 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 extended, the negotiations are reportedly advanced enough to suggest a potential conclusion before the end of 2026.
Two central plants in Cameroon’s electrical mix
The assets involved are indeed crucial. 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 energy source for the South interconnected network, which represents the country’s primary consumption hub. Meanwhile, the Dibamba power plant, a heavy fuel oil thermal facility situated near Douala, provides 88 megawatts. This plant plays a critical backup role during peak demand periods or when hydroelectric generation faces disruptions. Collectively, these installations contribute significantly to the national thermal capacity within an energy system predominantly reliant on hydropower, which is inherently vulnerable to rainfall fluctuations.
With the Nachtigal dam progressively ramping up to full operation, expected in the near future, Cameroon’s energy landscape is undergoing a transformation. Authorities are strategically realigning existing thermal capacities for optimized performance. The Kribi gas plant is envisioned to maintain its role as a foundational energy provider, while Dibamba would increasingly function as an emergency backup. Reclaiming capital control over these facilities would empower the state to directly influence operational, maintenance, and pricing decisions.
An operation with strong strategic dimensions
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 anticipated departure aligns with a broader trend of portfolio restructuring among independent power producers across Africa. These producers are navigating evolving regulatory frameworks and the increasing desire of African nations to regain command over their strategic assets. Cameroon is no exception to this dynamic, especially as its electricity sector continues to grapple with structural challenges, including the precarious financial health of Sonatrel and accumulated arrears owed to independent producers.
The indicative price of 80 billion FCFA alone raises questions regarding financial closure. The Cameroonian state’s budgetary flexibility is constrained by 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 BEAC regional market, or the introduction of a substitute technical partner. The chosen legal framework will also influence the tariff trajectory in a country where electricity prices are administered, and any increase carries the risk of social unrest.
A signal for independent producers in Central Africa
Beyond Cameroon’s specific situation, this transaction will be closely observed by private investors engaged in Independent Power Producer (IPP) projects throughout Sub-Saharan Africa. Yaoundé’s ability to execute an orderly transaction, accurately value the assets, and ensure operational continuity will send a clear message to funds and developers involved in similar ventures in 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 across generation, transmission, and distribution remain substantial.
Nevertheless, the tight timeline indicated by sources close to the matter suggests that critical issues, notably the definitive valuation and the fate of existing power purchase agreements, must be resolved in the coming months. Discussions are progressing with a target for finalization by the end of 2026.
