Cameroon pursues acquisition of globeleq stakes in key power plants

The Cameroonian state is now actively engaged in discussions to acquire the 56% stake held by the British group Globeleq in two pivotal electricity generation companies. Yaoundé is currently in advanced talks with the London-based investor regarding the takeover of its shares in Kribi Power Development Company (KPDC) and Dibamba Power Development Company (DPDC). This potential acquisition is valued at an indicative 80 billion FCFA, equivalent to approximately 138 million US dollars. While no formal offer has been submitted yet, the negotiations are reportedly progressing well, with a target completion date set before the close of 2026.

Key power plants central to Cameroon’s energy mix

The assets involved are of considerable importance to Cameroon’s national power grid. The Kribi gas plant, operational since 2013 in the Southern region, boasts an installed capacity of 216 megawatts. This facility is a crucial supplier to the Southern Interconnected Grid, which serves as the country’s primary consumption hub. Meanwhile, the Dibamba plant, a heavy fuel oil thermal station located near Douala, contributes 88 megawatts. It serves as a vital backup, particularly during peak demand periods or in instances of hydroelectric system failures. Together, these installations represent a significant portion of the nation’s thermal capacity within an energy system predominantly reliant on hydraulic power, which is inherently susceptible to rainfall fluctuations.

With the Nachtigal dam progressively coming online, expected to be fully operational in the near future, Cameroon’s energy landscape is evolving. Authorities are strategizing to optimize the existing thermal capacities. The Kribi gas plant is envisioned to maintain its role as a base-load provider, while Dibamba would increasingly function as an emergency reserve. Reasserting capital control over these critical power generation tools would empower the state to directly influence operational decisions, maintenance strategies, and tariff structures, crucial for the nation’s energy security and development.

A highly strategic operation for Cameroon’s energy future

Globeleq, which is controlled by 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 anticipated divestment aligns with a broader trend of portfolio restructuring among independent power producers (IPPs) across the African continent. These companies are navigating evolving regulatory frameworks and a growing determination among African states to regain control over their strategic assets. Cameroon is certainly part of this dynamic, even as its electricity sector continues to grapple with structural challenges, including the fragile financial health of Sonatrel and accumulated arrears owed to independent producers. This move underscores a significant shift in African politics English, signaling greater state involvement in critical infrastructure.

The indicative price tag of 80 billion FCFA itself raises 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 with multilateral lenders, a dedicated issuance on the BEAC regional market, or the introduction of a new technical partner. The chosen legal framework will also influence the tariff trajectory in a country where electricity prices are regulated, and any increase risks triggering social tensions. This transaction is a key piece of African economy news.

A significant signal for independent power producers across Central Africa

Beyond the specific case of Cameroon, this operation will be closely watched by private investors involved in IPP projects throughout Sub-Saharan Africa. Yaoundé’s capacity to successfully conclude an orderly transaction, ensure a fair valuation of the assets, and maintain operational continuity will send a clear signal to funds and developers engaged in similar projects in Gabon, Congo, or Côte d’Ivoire. Conversely, a poorly structured agreement or an unmanaged disengagement could diminish the country’s attractiveness for future private sector financing, particularly at a time when substantial investment is still needed for electricity production, transmission, and distribution across the continent press.

Nevertheless, the tight timeline mentioned by sources close to the matter suggests that critical issues, particularly the definitive valuation and the future of existing power purchase agreements (PPAs), must be resolved in the coming months. Discussions are ongoing, with the aim of finalizing the deal before the end of 2026.