Cameroon approves renationalisation of main electricity provider
Cameroon has moved to take full control of its main electricity provider and distributor after President Paul Biya signed a decree approving its renationalisation.
The announcement on Monday comes as the country’s energy sector faces serious challenges including frequent power outages, with generation failing to meet growing demand.
Energy of Cameroon (ENEO) is the backbone of the country’s electricity sector holding a monopoly over distribution, while operating dozens of power generation plants.
It was privatised in 2001, but is regularly criticised for its obsolete network, frequent outages, and unpaid bills.
More than two months ago, the state bought back a 51% stake in the utility previously owned by British investment fund, Actis, for $139 million.
The government now owns 95% of the capital in the public limited company, with the remaining 5% held by employees.
ENEO has been rebranded as the Cameroon Electricity Company (SOCADEL), with the Minister for Water and Energy making key appointments at a first board meeting of the new entity on Tuesday.
It now has to address the chronic power shortages while dealing with an inherited debt that stood at about $1,4 billion at the end of 2024.
