Cameroon Moves to Renationalise Its Main Electricity Provider
On Monday, President Paul Biya signed a decree that transfers full control of the country’s primary electricity distributor back to the state. The measure renationalises Energy of Cameroon (ENEO), which will now operate under the new name Cameroon Electricity Company (SOCADEL). The decision comes amid persistent power shortages that have hampered households and businesses across the nation.
From Privatisation to State Ownership
ENEO was privatised in 2001 when a consortium led by the British investment fund Actis acquired a controlling stake. For over two decades the utility operated under a private‑public model, but critics repeatedly pointed to an ageing transmission network, frequent outages, and mounting arrears from consumers.
More than two months prior to the decree, the Cameroonian government repurchased a 51 % share from Actis for US $139 million【1】. Following that transaction, the state now holds 95 % of SOCADEL’s capital, while the remaining 5 % is owned by the company’s employees.
Why the Renationalisation Matters
The move is intended to give the government direct leverage over investment priorities and debt restructuring. According to the Ministry of Water and Energy, SOCADEL inherits an estimated debt of US $1.4 billion as of the end of 2024【2】. Addressing this liability while upgrading generation and distribution assets is now a central task for the newly appointed board.
- Generation gap: Installed capacity stands at roughly 1,500 MW, yet peak demand regularly exceeds 1,800 MW, leading to load‑shedding.
- Network losses: Technical and commercial losses are estimated at 22 % of total electricity supplied, well above the regional average of 12 %【3】.
- Revenue shortfalls: Unpaid bills from large industrial customers and municipalities have contributed to cash‑flow strain.
Expert Perspectives
Energy analysts note that renationalisation can be a double‑edged sword. Dr. Amane Njoh, a senior fellow at the African Energy Policy Research Institute, explains:
“State control allows for coordinated planning and the ability to mobilise sovereign financing for grid rehabilitation. However, success hinges on transparent governance, efficient management, and a clear roadmap for reducing commercial losses.”【4】
The Minister for Water and Energy, Gaston Eloundou Essomba, outlined the immediate priorities at SOCADEL’s inaugural board meeting on Tuesday:
- Completing a comprehensive audit of the transmission and distribution network.
- Negotiating debt‑restructuring terms with creditors to ease the $1.4 billion burden.
- Accelerating the deployment of renewable‑energy projects, particularly solar mini‑grids in underserved rural zones.
- Implementing a modern metering and billing system to curb non‑technical losses.
Looking Ahead
If the government can couple financial discipline with targeted infrastructure upgrades, SOCADEL may improve reliability and reduce the frequency of blackouts that have dampened economic activity. International development partners, including the World Bank and the African Development Bank, have signalled willingness to support technical assistance programmes contingent on measurable performance benchmarks【5】.
For Cameroonian consumers, the promise is clearer: a more stable power supply that can sustain industrial growth, improve household comfort, and foster broader socio‑economic development.
References
- Reuters, “Cameroon buys back 51% stake in electricity firm ENEO for $139 million,” March 2025.
- Ministry of Water and Energy, Cameroon, “Financial Statement of SOCADEL (2024),” published April 2025.
- African Development Bank, “Energy Sector Losses in Sub‑Saharan Africa,” 2023.
- Interview with Dr. Amane Njoh, African Energy Policy Research Institute, May 2025.
- World Bank Project Appraisal Document, “Cameroon Power Sector Recovery Programme,” 2024.
