Cameroon state eyes globeleq’s power assets in kribi and dibamba

The Cameroonian state’s move to acquire the 56% stake held by the British group Globeleq in two crucial electricity generation companies has entered a proactive phase. Reports from economic media indicate that Yaoundé is in advanced discussions with the London-based investor to take over its shares in both Kribi Power Development Company (KPDC) and Dibamba Power Development Company (DPDC). The indicative valuation for this significant transaction hovers around 80 billion FCFA, equivalent to approximately 138 million US dollars. While a formal offer is yet to be submitted, the ongoing exchanges are reportedly sufficiently progressed, suggesting a potential conclusion before the close of 2026.

Key power plants in Cameroon’s energy mix

The assets under consideration are far from minor players in Cameroon’s energy landscape. The Kribi gas-fired power plant, which commenced operations in 2013 in the Southern region, boasts an installed capacity of 216 megawatts. It is a vital contributor to the Southern interconnected grid, which serves as the country’s primary consumption hub. Meanwhile, the Dibamba plant, a heavy fuel oil thermal facility located near Douala, provides 88 megawatts. This plant plays an essential role as a backup during periods of peak electricity demand or in instances of hydroelectric system failures. Collectively, these installations represent a substantial portion of the nation’s thermal capacity, complementing a predominantly hydraulic system that is, however, susceptible to rainfall variations.

With the Nachtigal dam progressively increasing its output, and full commissioning anticipated in the near future, Cameroon’s energy equation is undergoing a transformation. Authorities are strategically repositioning existing thermal capacities within an optimized framework. The Kribi gas plant is envisioned to maintain its role as a foundational power source, while Dibamba is set to transition into more of a critical backup function. Reclaiming capital control over these facilities would empower the state to directly influence operational decisions, maintenance strategies, and pricing structures.

A highly strategic acquisition

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 held by AES. The planned divestment aligns with a broader trend of portfolio restructuring among independent power producers across Africa. These producers are increasingly navigating evolving regulatory environments and a growing desire among African nations to regain command over their 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 accumulated arrears owed to independent producers.

The indicative price tag of 80 billion FCFA alone raises significant questions regarding financial closure. The Cameroonian state’s budgetary margins are constrained by substantial debt servicing obligations and commitments made to the International Monetary Fund under its current program. Plausible financing scenarios include involvement from multilateral lenders, a dedicated issuance on the regional BEAC market, or the introduction of a substitute technical partner. The specific legal structure chosen for the acquisition will also directly influence the tariff trajectory in a country where electricity prices are regulated, and any upward adjustments risk triggering social unrest.

Implications for independent power producers in Central Africa

Beyond Cameroon’s specific situation, this operation will be closely monitored by all private investors involved in Independent Power Producer (IPP) projects across Sub-Saharan Africa. Yaoundé’s ability to successfully execute an orderly transaction, ensure a fair valuation of the assets, and maintain operational continuity will send a crucial signal to funds and developers engaged in similar projects in Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly structured agreement or a mismanaged disengagement could undermine the country’s attractiveness for future private sector financing, especially at a time when investment needs in power generation, transmission, and distribution remain substantial.

Nevertheless, the tight timeline suggested by sources close to the matter implies that critical issues, particularly the definitive valuation and the future of existing power purchase agreements, must be resolved in the coming months. Discussions are actively continuing with a view to finalizing the deal before the end of 2026.