Cameroon President Places Power Firm Under State Control

Cameroon has renationalised Eneo Cameroon, now renamed Socadel, placing it fully under state control under Paul Biya. The move aims to fix persistent power outages and service issues, but the company faces a heavy debt burden of about 800 billion CFA francs.

Cameroon has formally approved the renationalisation of its main electricity provider, bringing Eneo Cameroon fully under state ownership, according to a presidential decree signed by Paul Biya. The move marks a significant shift in the country’s energy policy, reversing a privatisation process that began more than two decades ago. Under the new arrangement, the company will be rebranded as the Cameroon Electricity Company (Socadel), reflecting its return to full government control.
Eneo, which is responsible for generating and distributing electricity to nearly 30 million people across the country, was privatised in 2001 as part of broader economic reforms aimed at improving efficiency and attracting foreign investment. However, over the years, the company has faced sustained criticism from consumers, businesses, and government officials due to frequent power outages, inconsistent service delivery, and disputes over billing and unpaid debts. These ongoing challenges have contributed to widespread dissatisfaction and calls for reform within the sector.
The renationalisation follows a key financial transaction earlier this year, in which the Cameroonian government purchased a 51% stake in the company from the British investment firm Actis for approximately 78 billion CFA francs (around $139 million). Prior to the acquisition, the state already held a 44% share, meaning the latest deal increased its ownership to about 95% of the company’s capital. The remaining 5% is held by employees, making the government the dominant controlling shareholder.
Following the decree, Cameroon’s Minister for Water and Energy, Gaston Eloundou Essomba, convened the first board meeting of the newly restructured entity in the capital, Yaoundé. During the meeting, key leadership appointments were made as part of efforts to reorganise the company’s management and improve oversight. Essomba emphasised the need for a fundamental break from past practices, signalling the government’s intention to introduce reforms aimed at stabilising and modernising the electricity sector.
Despite the optimism surrounding the restructuring, the new state-owned entity, Socadel, inherits significant financial and operational challenges. Chief among these is a substantial debt burden estimated at around 800 billion CFA francs as of the end of 2024. This level of debt raises concerns about the company’s financial sustainability and its ability to invest in infrastructure upgrades needed to improve electricity generation, transmission, and distribution.
The government’s decision to retake control of the power sector reflects broader concerns about energy security and economic stability. Reliable electricity is critical for industrial growth, business operations, and daily life, and persistent outages have been seen as a major constraint on development. By renationalising the utility, authorities appear to be aiming for greater control over service delivery and long-term planning.
However, analysts note that while state control may allow for more direct intervention, it does not automatically guarantee improved performance. The success of the move will likely depend on how effectively the government manages the company, addresses its debt, and invests in infrastructure while ensuring transparency and accountability.
As Socadel begins operations under its new structure, attention will be focused on whether the renationalisation leads to tangible improvements in electricity supply, reduced outages, and better customer service for households and businesses across Cameroon.