Cameroon’s state negotiates acquisition of Globeleq power assets

The Cameroonian government is now in an active phase of discussions to acquire the 56% stake held by British group Globeleq in two vital electricity generation companies. Yaoundé is engaged in negotiations 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 strategic acquisition hovers around 80 billion FCFA, equivalent to approximately 138 million US dollars. While a formal offer has yet to be submitted, exchanges are reportedly at an advanced stage, suggesting a potential conclusion before the close of 2026.

Key power plants central to Cameroon’s energy matrix

The assets involved are far from minor. The Kribi gas-fired power plant, operational since 2013 in the Southern region, boasts an installed capacity of 216 megawatts. It serves as a crucial power source for the Southern interconnected network, which is the nation’s primary consumption hub. Meanwhile, the Dibamba thermal plant, fueled by heavy oil and located near Douala, contributes 88 megawatts. This facility plays an essential auxiliary role, providing power during peak demand periods or in instances of hydroelectric system failures. Collectively, these installations represent a substantial portion of Cameroon’s thermal capacity, complementing a predominantly hydraulic system that remains vulnerable to rainfall fluctuations.

The impending full commissioning of the Nachtigal dam is set to significantly alter Cameroon’s energy landscape. Authorities are strategically re-evaluating the role of existing thermal capacities within an optimized framework. The Kribi gas plant is envisioned to maintain its foundational role, while Dibamba would increasingly serve as a backup resource. Regaining capital control over these critical infrastructure assets would empower the state to directly influence operational decisions, maintenance strategies, and pricing policies.

A highly strategic national energy initiative

Globeleq, under the control of the British fund CDC Group and Norway’s Norfund, established its presence in Cameroon in 2014 by acquiring the shares previously held by AES. This planned divestment aligns with a broader trend of portfolio restructuring among independent power producers (IPPs) across Africa. These producers are navigating evolving regulatory environments and the growing desire of African states to reassert control over their strategic assets. Cameroon is no exception to this dynamic, even as its electricity sector grapples with persistent structural challenges, including the precarious financial health of Sonatrel and accumulating arrears owed to independent producers.

The indicative price of 80 billion FCFA alone raises significant 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 current program. Plausible funding scenarios include involvement from multilateral donors, a dedicated issuance on the Beac regional market, or the introduction of a substitute technical partner. The chosen legal structure will also significantly impact tariff trajectories in a country where electricity prices are administered, and any increase carries the risk of social unrest.

Implications for independent power producers across Central Africa

Beyond Cameroon’s borders, this transaction will be closely observed by private investors engaged in 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 inadequately managed disengagement could diminish the country’s appeal for future private sector financing, particularly at a time when substantial investments are still needed across generation, transmission, and distribution networks.

Nevertheless, the tight timeline mentioned 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 an aim for finalization before the end of 2026.