The Government of Cameroon has regained effective control of Eneo, the country’s main electricity distributor and supplier, following the signing of an agreement to buy back the stake held by the British private equity fund Actis. The final agreement was signed on Wednesday, November 19, 2025, concluding a negotiation process that lasted more than two years.
The transaction was signed at the Ministry of Finance in the presence of Finance Minister Louis Paul Motaze and the Minister of Water and Energy (or Water Resources and Energy), Gaston Eloundou Essomba. Minister Essomba stated that this signing marks the “effective resumption of control of ENEO by the State of Cameroon” and is an “essential prerequisite” for launching the necessary reforms to stabilize the electricity system.
The key figures of the transaction are:
- Transaction Value: The government paid 78 billion CFA francs. This amount is equivalent to $137 million.
- Stake Acquired: The state acquired the 95 percent stake held by Actis. Actis had initially purchased a 51 percent share in Eneo in 2014, having previously acquired it from the American company AES-SONEL after SONEL was privatized.
- New Ownership Structure: The state will now hold 95 percent of the company, with the remaining 5 percent set aside for employees.
ENEO’s Severe Financial Strain
The government’s takeover comes as the electricity sector faces severe financial pressure. The financial imbalance, which Minister Essomba described as “profound,” is the root cause of operational difficulties and delayed payments to independent producers such as Nachtigal, Kribi, and Memve’ele.
The company is weighed down by significant debt:
- Total Debt: Eneo’s total debt reached 800 billion CFA francs (about $1.3 billion) at the end of 2024, according to the Ministry of Water and Energy’s Compact Energy Pays report.
- Debt History: Two years earlier, in 2022, Eneo’s debt already stood at about 700 billion CFA francs.
- Debt Breakdown: This total includes roughly 500 billion CFA francs owed to suppliers.
- Unpaid Bills: Eneo also faces approximately 80 billion CFA francs in unpaid bills.
- Public Creditors: Nearly half of the 2022 debt was owed to public entities, including Sonatrel, EDC, Sonara, SNH-Tradex, and Arsel. The problem of unpaid public entity bills constitutes a lack of earnings for Eneo.
The government’s subsequent recovery plan
The government’s subsequent recovery plan includes refinancing ENEO’s CFA800 billion debt and aims to restore the sector’s financial balance by 2028.
Authorities also intend to combat fraud, which accounts for nearly 15% of network losses.
The monetary value of these fraud losses is estimated by sources as either CFA60 billion per month or 60 billion FCFA per year.
Is this the Silent End of Independent Power Projects?
The state’s acquisition of a 95 percent stake in Eneo, despite being hailed as an act of “energy sovereignty”, presents a substantial challenge to independent power producers (IPPs) and developers of new power projects. This concern stems directly from Eneo’s profound financial imbalance, which Minister Gaston Eloundou Essomba identified as the root cause of payment delays.
Eneo’s crippling total debt, which reached CFA800 billion (about $1.3 billion) at the end of 2024, severely undermines its credibility as an off-taker for new power projects. For new IPPs, financing is contingent on a credible off-take agreement; hence, contracting with a highly indebted, state-controlled utility where payments have historically been delayed will likely stall investment and development.
While the government has prioritized refinancing this CFA800 billion debt and improving cash flow to “stabilize payments”, the success depends on achieving greater financial discipline, especially regarding unpaid bills from public entities, a known source of Eneo’s lack of earnings.
Skepticism remains, given that previous state management examples have resulted in financial difficulties for state-owned enterprises. The replacement of private commercial risk with sovereign risk may not fully alleviate the payment concerns for future IPPs seeking long-term, reliable revenue streams.
Is This the Silent End of Independent Power Projects?
The Cameroonian government’s acquisition of a 95 percent stake in Eneo, though framed as an act of “energy sovereignty,” marks a turning point for the country’s electricity sector. While the move signals greater state control over a strategic utility, it also raises deep concerns about the future of independent power producers (IPPs) and private investment in generation projects.
At the heart of the problem lies Eneo’s severe financial imbalance, identified by Minister Gaston Eloundou Essomba as the main source of recurring payment delays to power producers. By the end of 2024, Eneo’s total debt had ballooned to around CFA 800 billion (approximately 1.3 billion USD).
This massive liability undermines the company’s credibility as a reliable off-taker, a crucial factor in securing project finance for new IPPs. Without a bankable off-take agreement, investors are unlikely to commit capital, especially when payment defaults have become systemic.
The government has pledged to refinance Eneo’s debt and restore payment stability, emphasizing the need for stricter financial discipline, particularly in collecting arrears from public institutions. Yet, structural weaknesses in the sector’s revenue chain raise doubts about whether these reforms can be sustained.
Cameroon’s experience with state-managed enterprises adds another layer of skepticism. Historically, public control in sectors such as water and transport has yielded mixed results, often leading to inefficiencies and renewed fiscal pressure. Replacing private commercial risk with sovereign risk may offer political reassurance, but it does little to mitigate investors’ fears about delayed or partial payments over long-term contracts.
Ultimately, the state’s return to dominant ownership could stifle competition, dampen innovation, and slow private-led electrification. Unless strong governance and transparent regulatory oversight accompany this shift, the government’s quest for “energy sovereignty” might inadvertently signal the silent end of independent power development in Cameroon.
