Cameroon Moves to Nationalise Globeleq’s Kribi and Dibamba Power Plants

Cameroon Plans to Buy Out Globeleq’s 56% Stake in Two Power Plants

The Cameroonian government is in talks with British independent power producer Globeleq to acquire its majority stake in the companies owning the Kribi and Dibamba thermal plants—a deal valued at around 80 billion CFA francs (approximately US$138 million). The state already holds 44% of Kribi Power Development Company (KPDC) and Dibamba Power Development Company (DPDC) and exercised its pre-emption right in July 2025 to safeguard its interests in these strategic assets.

The move follows Yaoundé’s February 2026 purchase of the 51% stake in electricity distributor Eneo previously held by private equity firm Actis. That transaction, priced at 78 billion CFA francs, was followed by a further increase of the state’s holding to 95% and eventual full control. Together, the two acquisitions would bring the total outlay to nearly 158 billion CFA francs—excluding any future recapitalisation or the clearing of legacy liabilities.

The Kribi gas-fired plant has a capacity of 216 MW, while the heavy-fuel-oil-fired Dibamba station adds 88 MW. Together they supply a significant share of the power needs of the South Interconnected Grid, covering the economic hubs of Douala, Yaoundé and the industrial port zone of Kribi. Full ownership would allow the government to renegotiate the power purchase agreements (PPAs) that currently cost the newly state-owned utility Socadel around 8 billion CFA francs per month.

The Ministry of Water and Energy expects that reworking these contracts could cut monthly payments by 3 billion CFA francs—equivalent to annual savings of up to 36 billion CFA francs. Although no formal offer has yet been submitted, local business media report that negotiations could conclude before the end of 2026. The talks remain clouded by the memory of Globeleq’s temporary shutdown of the plants in 2024–2025 over unpaid invoices totalling 137 billion CFA francs.

Inside the $138 Million Gambit: Savings, Debts, and Control

Why Yaoundé Wants Full Control of Kribi and Dibamba

The buyout cements a broader state-led consolidation of Cameroon’s electricity sector. Having already taken over distribution through Eneo/Socadel, absorbing the two main thermal generators eliminates the split between public and private ownership along the value chain. It also removes a contractual counterparty that, in the recent past, halted supply when bills went unpaid—a direct threat to grid stability and the economy.

The Arithmetic of Saving 3 Billion CFA a Month

The government’s stated financial rationale is compelling. Socadel is currently paying roughly 8 billion CFA francs every month to KPDC and DPDC under legacy PPAs signed when Globeleq was the private operator. By internalising the plants, the state intends to renegotiate those agreements with itself, targeting monthly savings of 3 billion CFA francs—36 billion annually. Over time, that could offset much of the acquisition cost, provided the deal is structured without adding unsustainable new debt.

Globeleq’s Payment Disputes Cast a Shadow

The exit talks cannot be divorced from the payment arrears crisis that blew up in 2024–2025, when Globeleq stopped generation over 137 billion CFA francs in unpaid invoices. That episode exposed the financial fragility of the electricity sector and soured relations. Whether those arrears will be settled as part of the sale or left as a separate burden on the state’s books remains unclear, and the outcome will heavily influence the net cost of the nationalisation.

What the State Gets—and What It Must Now Manage

Beyond the balance sheet, taking over 304 MW of thermal capacity is a major operational undertaking. Kribi and Dibamba are not just financial assets; they are critical infrastructure that must be maintained, fuelled and staffed. Any misstep in the transition could lead to the very supply disruptions the government is trying to prevent. Moreover, running the plants under state ownership means the treasury—rather than a private operator—will bear the full risk of future fuel price spikes and major overhauls.

Priorities for Yaoundé as It Takes the Reins

• Secure financing for the ~80 billion CFA purchase and address legacy debts. The transaction will likely require fresh budget allocations or borrowing, and the 137 billion CFA in disputed arrears must be either settled or ring-fenced to avoid immediate cash-flow pressure on Socadel.
• Begin PPA renegotiation immediately upon closing. The monthly saving of 3 billion CFA francs hinges on rewriting the power purchase contracts; any delay erodes the expected fiscal benefit.
• Prepare an operational handover plan. The plants’ past shutdowns over payment disputes show that fuel supply and routine maintenance cannot be taken for granted; a dedicated transitional management team will be essential to sustain output during the ownership change.
• Manage investor perceptions. Globeleq’s exit under a cloud of unpaid bills could deter future private investment in Cameroon’s generation sector; follow-up statements and transparent contract settlements will be needed to rebuild confidence among independent power producers.