(Business in Cameroon) – The Cameroonian government on Wednesday signed an agreement to buy back the stake held by British private equity fund Actis in Eneo, the country’s main electricity distributor.
The signing, which comes after more than two years of negotiations, took place at the Ministry of Finance in the presence of Finance Minister Louis Paul Motaze, Water and Energy Minister Gaston Eloundou Essomba and representatives from Actis. The transaction is valued at 78 billion CFA francs, according to sources familiar with the deal.
Actis, which bought a 51 percent share in Eneo in 2014, is expected to finalize its exit at an upcoming extraordinary board meeting. Once the transaction is completed, the state will hold 95 percent of the company, with the remaining 5 percent set aside for employees. The new structure effectively places Eneo back under state control.
A Sector Under Heavy Financial Strain
The takeover comes as Cameroon’s electricity sector faces severe financial pressure. According to the Ministry of Water and Energy’s Compact Energy Pays, Eneo’s total debt reached 800 billion CFA francs (about 1.3 billion dollars) at the end of 2024. This includes roughly 500 billion CFA francs owed to suppliers and around 80 billion CFA francs in unpaid bills.
Two years earlier, Eneo’s debt already stood at about 700 billion CFA francs, nearly half of which was owed to public entities including Sonatrel, EDC, Sonara, SNH-Tradex and Arsel. The growing debt burden reflects chronic underinvestment in the sector, an aging grid and frequent power outages.
Government Plans Sector Overhaul
The government is preparing a broad recovery plan, with the first steps scheduled for 2025 and 2026. Buying back the Actis stake marks the start of the process, which will include a full assessment of Eneo, a restructuring of its debt and stronger measures to improve bill collection, particularly from public institutions.
Authorities aim to restore the sector’s financial balance by 2028. Priorities include modernizing the distribution network, cutting technical losses and improving the financial performance of the power system. Regaining control of the utility is seen as a strategic move to stabilize a critical sector and improve the reliability of electricity supply across Cameroon.
Amina Malloum
