Cameroon moves to nationalize Eneo with 95% state ownership
By Synthia Lateu
Energy of Cameroon (Eneo), the country’s main electricity producer and distributor, is moving toward nationalization, with the State of Cameroon now holding 95% of its capital. The British investment fund Actis has agreed to sell its 51% stake, which it had acquired from AES-Sonel in 2014. The remaining 5% will be held by Eneo’s staff once the deal is finalized.
Actis accepted a 78 billion CFA francs offer (approximately 119 million euros) from the Cameroonian government for the purchase. A preliminary agreement has reportedly already been reached between the two parties.
However, this return to public ownership comes 24 years after the privatization of AES Sonel and with a liability of several hundred billion CFA francs. Amid recurring power outages and insufficient modernization of the electricity transmission infrastructure, Actis has repeatedly cited unpaid debts by the State as a major issue.
David Alderton, the chief negotiator for Actis and head of Cameroon Power Holdings (CPH) — the fund’s investment vehicle in Eneo who confirmed the preliminary agreement set strict conditions for its completion. “All payments owed by Eneo to Actis (including arrears related to technical and personnel service contracts) must be fully settled before finalization,” he reportedly said.
Although the deal has been approved in principle, it still awaits final approval from President Paul Biya.
However, with such a heavy debt burden left behind by Eneo, questions arise about Cameroon’s ability to mobilize investment to reduce its energy deficit .
