The Cameroonian state is actively pursuing the reacquisition of the 56% stake held by the British group Globeleq in two significant electricity generation companies. Yaoundé is currently engaged in discussions with the London-based investor regarding the repurchase 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, which translates to approximately 138 million US dollars. While a formal offer has not yet been submitted, negotiations are reportedly at an advanced stage, with a potential conclusion anticipated before the end of 2026.

Two vital plants at the heart of Cameroon’s electricity mix

The assets under consideration are of considerable strategic importance. The Kribi gas-fired power plant, which commenced operations in 2013 in the Southern region, boasts an installed capacity of 216 megawatts. It plays a crucial role in supplying the interconnected Southern grid, the nation’s primary consumption hub. The Dibamba plant, a heavy fuel oil thermal facility situated near Douala, contributes 88 megawatts and serves as a vital backup during peak demand periods or in the event of hydroelectric system failures. Together, these installations represent a substantial portion of the country’s thermal capacity within an energy system predominantly reliant on hydropower, which is inherently susceptible to variations in rainfall.

The imminent full commissioning of the Nachtigal dam is poised to significantly reshape Cameroon’s energy landscape. Authorities are focused on strategically re-positioning existing thermal capacities within an optimized framework. In this new configuration, the Kribi gas plant is expected to retain its foundational role, while Dibamba would increasingly function as a crucial reserve. Regaining capital control over these facilities would empower the state to more directly influence operational, maintenance, and pricing decisions.

A highly strategic operation

Globeleq, which is controlled by the British CDC Group fund and the Norwegian Norfund, established its presence in Cameroon in 2014 by acquiring shares previously held by AES. This planned divestment aligns with a broader trend of portfolio restructuring among independent power producers across the African continent. These producers are navigating evolving regulatory environments and a growing desire among African states to reclaim direct control over their strategic assets. Cameroon is no exception to this dynamic, particularly 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 complex questions regarding financial closure. The Cameroonian state’s budgetary margins are constrained by debt servicing obligations and commitments made to the International Monetary Fund under its ongoing program. Plausible financing options include arrangements involving multilateral lenders, a dedicated issuance on the regional Beac market, or the introduction of a substitute technical partner. The chosen legal framework will also significantly influence the tariff trajectory in a country where electricity prices are regulated, 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 involved in Independent Power Producer (IPP) projects across sub-Saharan Africa. Yaoundé’s ability to successfully execute an orderly transaction, accurately value the assets, and ensure operational continuity will send a clear message to funds and developers engaged in similar projects in Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly structured agreement or an inadequately managed disengagement could diminish 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 those familiar with the matter implies that critical issues, especially the definitive valuation and the fate of existing power purchase agreements, must be resolved in the coming months. Discussions are progressing, with a finalization targeted before the end of 2026.