Cameroon’s newly created national electricity company (Socadel) has started operations under heavy financial pressure after taking over from Energy of Cameroon (Eneo), whose mounting debt and structural deficits have weakened the country’s power sector for years.
Socadel was officially established on May 4, 2026, by presidential decree. But according to Eneo’s 2026–2028 restructuring plan, the company begins with an estimated debt burden of nearly CFA850 billion and a recurring monthly financing gap averaging CFA13 billion.
The document describes a utility whose revenues consistently fall short of its operating costs.
Eneo currently issues around CFA40 billion in electricity bills each month but collects only about CFA31 billion. At the same time, monthly expenses reach roughly CFA44 billion.
Most of the billed electricity comes from households and industrial customers, which account for CFA33 billion per month. Public administrations and local governments represent another CFA3 billion, while state-owned entities — including Alucam, Camwater, Camtel, Sonara, CRTV, hospitals, and universities — account for CFA3.5 billion. Other high-voltage private clients, including cement producers, contribute around CFA500 million.
Despite that billing structure, actual collections remain low. The recovery rate stands at about 77.5%, a level the restructuring plan describes as “very weak.”
On the cost side, energy purchases alone account for CFA24 billion each month. Fuel costs add another CFA4 billion, while fixed operating expenses total CFA11 billion. Financial charges amount to CFA1 billion monthly, alongside CFA1.7 billion in miscellaneous expenses and about CFA2 billion in income taxes.
Under these conditions, restoring financial balance in Cameroon’s electricity sector would require at least CFA13 billion in additional monthly resources beyond current collections, according to the restructuring plan.
The document argues that urgent restructuring measures will be necessary if the sector is to regain stability and maintain electricity supply across the country.
Thierry Christophe Yamb
