Yaoundé moves to acquire strategic power assets from globeleq

The Cameroonian state is now actively pursuing the acquisition of the 56% stake held by the British Globeleq group in two electricity generation companies. Yaoundé is engaged in discussions with the London-based investor regarding the takeover of its interests in Kribi Power Development Company (KPDC) and Dibamba Power Development Company (DPDC). The indicative valuation for this transaction hovers around 80 billion FCFA, roughly 138 million US dollars. While no formal offer has been submitted yet, the negotiations are reportedly advanced enough to foresee a conclusion by the end of 2026.

Key power plants in Cameroon’s electricity mix

The assets under consideration are crucial to the nation’s energy supply. The Kribi gas-fired plant, operational since 2013 in the Southern region, boasts an installed capacity of 216 megawatts and feeds the Southern interconnected grid, the country’s primary consumption hub. The Dibamba plant, a heavy fuel oil thermal facility located near Douala, contributes 88 megawatts and serves as a vital backup during peak demand periods or in the event of hydroelectric failures. Collectively, these installations represent a significant portion of Cameroon’s thermal capacity within a system predominantly reliant on hydropower, which is vulnerable to rainfall fluctuations.

With the Nachtigal dam gradually ramping up to full operation, expected in the near future, Cameroon’s energy landscape is shifting. Authorities are strategically repositioning existing thermal capacities for an optimized system, where Kribi’s gas power maintains a foundational role, while Dibamba increasingly acts as an emergency reserve. Regaining capital control over these facilities would empower the state to directly influence operational, maintenance, and pricing decisions.

A highly strategic operation

Globeleq, under the control of the British CDC Group fund and Norway’s Norfund, established its presence in Cameroon in 2014 by acquiring shares previously owned by AES. This planned divestment aligns with a broader trend of portfolio restructuring among independent power producers across Africa. These producers face evolving regulatory frameworks and a growing desire among African states to regain control of their strategic assets. Cameroon is no exception to this dynamic, especially as its power sector grapples with structural challenges, including the precarious financial health of Sonatrel and accumulated arrears owed to independent producers.

The indicative price tag of 80 billion FCFA alone raises questions about financial closure. The Cameroonian state’s budgetary margins are constrained by debt servicing and commitments made to the International Monetary Fund under the ongoing program. Potential 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 chosen legal structure will also impact tariff trajectories in a country where electricity prices remain regulated, and any increase risks social unrest.

A signal for independent power producers in Central Africa

Beyond Cameroon’s specific situation, this transaction will be closely watched by private investors involved 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 crucial signal to funds and developers engaged in similar ventures in Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly structured agreement or an ill-managed disengagement could undermine the country’s attractiveness for future private sector financing, particularly at a time when investment needs in generation, transmission, and distribution remain substantial.

Nevertheless, the tight timeline suggested by sources close to the matter implies that critical issues, particularly the final valuation and the status of existing power purchase agreements, must be resolved in the coming months. Discussions are reportedly ongoing with a view to finalization before the close of 2026.