Cameroon Government: Acquires Majority Stakes in Kribi Dibamba Power Plants

• Cameroon is negotiating a CFA80 billion deal to acquire Globeleq's majority stakes in Kribi and Dibamba thermal power plants.
• The two plants supply over 20% of Cameroon's Southern Interconnected Grid capacity.
• Negotiations are progressing well, with a possible completion by the end of 2026.

Cameroon is negotiating an estimated CFA80 billion deal to acquire Globeleq’s majority stakes in two power producers that supply more than 20% of capacity on the country’s Southern Interconnected Grid.

Cameroon is in the midst of negotiating a massive energy deal worth an estimated CFA80 billion. The government aims to acquire Globeleq's majority stakes in two key power producers: Kribi and Dibamba thermal power plants. These plants supply over 20% of the country's Southern Interconnected Grid capacity, making them crucial assets for Cameroon's electricity sector. While no formal offer has been submitted yet, sources close to the talks indicate that negotiations are progressing well and could be completed by the end of 2026, pending any changes in schedule or disagreements over financial terms.

The deal's valuation is shrouded in uncertainty. It remains unclear whether the CFA80 billion figure covers only Globeleq's shares, includes receivables from former electricity distributor Eneo (now Socadel), or incorporates other financial obligations of the two companies. A source involved in the discussions hinted at prior settlements with Globeleq or project companies but did not specify their nature. This distinction is significant as unpaid electricity bills, dividends declared by KPDC and DPDC, and potential shareholder loans require different accounting treatments. Lawyers advising clients on energy investments in Cameroon should be aware of these complexities and potential compliance exposures related to the acquisition.

The proposed deal marks a significant shift in Cameroon's electricity sector privatization efforts. By acquiring majority stakes in key power producers, the government aims to regain control over strategic assets. This move could have far-reaching implications for the country's energy landscape and market dynamics. As Cameroon's electricity sector continues to evolve, stakeholders must carefully consider the potential consequences of this deal on the industry's future development.

Lawyers advising clients on energy investments in Cameroon should watch for the potential implications of this deal, including changes to the country's electricity market and possible compliance exposures related to the acquisition.

Source: Original reporting via Business in Cameroon