The decision comes amid persistent power outages, infrastructure challenges and disputes over unpaid state debts that have hampered operations.
Cameroon is set to take full control of its main electricity provider, Energy of Cameroon, ENEO, after reaching a preliminary agreement to acquire a 95% stake in the company. The British investment fund actis, which has held a majority 51% share since 2014, agreed to sell its stake to the Cameroonian government for 78 billion CFA francs approximately €119 million. The remaining 5% will be owned by ENEO’s employees once the deal is finalized. This move marks a significant shift in Cameroon’s energy sector, reversing the privatization of AES-Sonel, ENEO’s predecessor 24 years ago.
However, the transition comes amid longstanding challenges, including frequent power outages, aging infrastructure and unresolved financial disputes. Actis has repeatedly cited unpaid government debts as a major obstacle to ENEO’s operations. David Alderton, Actis’ chief negotiator and head of Cameroon Power Holdings, CPH, confirmed the preliminary agreement but emphasized that finalization depends on the settlement of all outstanding payments owed by ENEO. This includes arrears linked to technical and personnel service contracts. While the deal has been approved in principle, it still requires final authorization from President Paul Biya before completion.
The nationalization raises questions about the future of Cameroon’s electricity sector, which has struggled with reliability and expansion. The government now faces the dual challenge of modernizing infrastructure and managing ENEO’s substantial liabilities, estimated at several hundred billion CFA francs. The outcome of this transition will be closely watched as Cameroon seeks to stabilize its energy supply and meet growing demand.
