Cameroon’s Electricity Sector Transitions to Full State Control BODY: Johannesburg, South Africa – Cameroon has taken a significant step towards reasserting state control over its electricity sector, renationalizing its main provider, ENEO, and renaming it the Cameroon Electricity Company (SOCADEL). This move, announced on May 4, 2026, follows a decree signed by President Paul Biya, aimed at addressing chronic power shortages and improving service quality across the nation. ENEO, which has been the backbone of Cameroon’s electricity sector since its privatization in 2001, has faced persistent challenges.
The company’s outdated network has been a source of frequent power outages and unpaid bills, leading to widespread frustration among the population. To tackle these issues, the government had previously bought back a 51% stake in ENEO from British investment fund Actis for $139 million, increasing its ownership to 95%.
The renationalization of ENEO is seen by some as a strategic move to address the country’s energy deficit.
According to experts, the move could help in prioritizing infrastructure upgrades and debt management, which have been critical issues for the electricity sector.
The government now faces the challenge of investing in the necessary upgrades to the power grid to meet growing demand and reduce outages.
However, critics argue that the move may be politically motivated.
Some suggest that the renationalization could be a means to consolidate power within the government or to benefit certain groups. There are also concerns about the potential for corruption in the new state-owned entity.
The government’s decision to take full control of the electricity sector comes at a time when frustration over power outages has reached critical levels in several regions, including Buea and Mutengene.
Inhabitants of these areas have endured weeks without steady electricity, which has impacted daily life and economic activities.
The renationalization of ENEO is not without precedent in Africa.
In recent years, several African countries have returned key sectors to state control, often due to concerns over the quality of service and the need for greater government oversight.
The move in Cameroon is part of a broader trend in the region, reflecting a shift towards more state — led economic strategies.
The new SOCADEL will also need to address the significant debt inherited from ENEO.
As of the end of 2024, the debt stood at about $1.
4 billion, a figure that has likely increased since then. This financial burden will require careful management and strategic planning to ensure the long-term sustainability of the electricity sector.
As the government moves forward with the renationalization, it will be closely watched by both domestic and international stakeholders.
The success of SOCADEL will be a critical indicator of the government’s ability to manage state-owned enterprises effectively and to deliver on its promise of improved electricity service for the Cameroonian people.
In conclusion, the renationalization of ENEO in Cameroon represents a pivotal moment for the country’s electricity sector. While it offers potential for positive change, it also comes with significant challenges that will require careful navigation by the government and its new state-owned entity.
The outcome of this transition will be closely monitored, not only by Cameroonians but by the broader African continent as well.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africanews
Source: Rédaction Africanews
