Cameroon renationalises its power distributor Eneo, rebranding it as Socadel

Cameroon has officially renationalized its electricity distribution operator. A presidential decree signed by Paul Biya, published Monday, transforms Energy of Cameroon (Eneo) into a state-owned company, now called Société Camerounaise d’Électricité (Socadel). The state becomes the sole shareholder of the utility, which supplies electricity to nearly 30 million people. Eneo had been privatized since 2001, regularly criticized for its dilapidated network and frequent outages.

A strategic buyback

The decision comes more than two months after the state bought the 51% stake held by British fund Actis. The transaction, concluded for 78 billion CFA francs (about €119 million), allowed the government to increase its ownership to 95% of the capital, having already held 44%. The remaining 5% are held by employees. This move is part of a global trend of network modernization, as highlighted by a recent report indicating that AI-powered smart grids attract $378.3 billion in investment in 2025.

The first board meeting of the new entity was held Tuesday in Yaoundé, chaired by the Minister of Water and Energy, Gaston Eloundou Essomba. Key appointments were confirmed. Oumarou Hamandjoda, previously deputy managing director of Eneo, was appointed as managing director of Socadel. « The sector requires a break with past practices, » the minister said during the installation of the new team.

A heavy financial legacy

The new state-owned company inherits a substantial debt, estimated at around 800 billion CFA francs at the end of 2024, or nearly €1.22 billion. This situation could weigh on public finances and complicate network modernization. Recurring blackouts and unpaid bills, which undermined Eneo’s credibility, remain major challenges to address.

Cameroonian authorities hope that this renationalization will allow them to regain control of a strategic sector. However, debt reduction and service quality improvement will require significant investments. The new management will need to quickly demonstrate its ability to restore the confidence of users and creditors.