The renationalization of Eneo in Cameroon has become a point of apprehension for the IMF. In its assessments, made public in May 2026, the International Monetary Fund cautioned Yaoundé regarding the potential financial implications of the operation. This move saw the state reclaim nearly all capital from the former subsidiary of the British fund, Actis. Rechristened Société camerounaise d’électricité (Socadel), the company is now 95% state-owned, with the remaining 5% allocated to employees. The Washington-based institution is concerned about an immediate escalation of state liabilities within an already constrained budgetary framework.
Shifting financial burdens to a stretched budget
The Fund’s analysis is unequivocal: the takeover of the historic electricity distributor transfers financial obligations previously managed by a private entity into the public domain. According to the assessment shared with Cameroonian authorities, this operation moves structural expenditures, which have historically lacked sustainable solutions, directly onto the national budget. Issues such as tariff imbalances, cross-arrears with various government bodies, and mounting debts owed to independent producers now fall squarely on the Treasury’s shoulders.
However, the government’s fiscal flexibility remains limited. Cameroon is currently implementing programs supported by the Extended Credit Facility and the Extended Fund Facility, necessitating a delicate balance between public finance consolidation, debt servicing, and funding social expenditures. Simultaneously assuming the national electricity operator’s cash flow requirements further complicates this financial equation. The IMF underscores the critical need to prevent Socadel from becoming a source of uncontrolled and recurring expenses.
An economic model deemed unsustainable
Beyond the asset ownership structure, the very viability of the operator is a concern for the institution led by Kristalina Georgieva. The Fund characterizes the economic model of this new public entity as fundamentally imbalanced. The tariffs applied to consumers are insufficient to cover the full spectrum of production and distribution costs, while technical and commercial losses across the network continue to exert pressure. When state compensation occurs, it often takes the form of implicit subsidies or accumulated arrears, which ultimately revert to the national budget.
The new shareholding structure, with 95% state ownership and 5% for employees, reflects this new architecture. While this initiative aims to involve personnel in governance, it does not alter the primary challenge: ensuring the distributor’s financial equilibrium. The IMF notes that Actis’s departure, which became effective several months ago, was not accompanied by a comprehensive overhaul of the tariff model or a sufficiently quantified operational recovery plan to reassure its financial partners.
Stabilizing the electricity sector without widening the deficit
Despite these challenges, Cameroon’s electricity sector remains strategically vital. It is fundamental to the nation’s industrial competitiveness, the gradual commissioning of major hydroelectric projects like Nachtigal and Memve’ele, and the goal of universal energy access outlined in the National Development Strategy 2020-2030. Any failure by the distributor would destabilize the entire value chain, impacting producers, the Sonatrel transporter, and ultimately, final consumers.
For the Fund, the immediate priorities include clarifying Socadel’s mandate, establishing a credible tariff trajectory, and clearing the existing stock of cross-debts among the state, independent producers, and the distributor. Without these foundational steps, the risk of recurrent calls on public guarantees is considered high. Several IMF technical missions are slated to examine the company’s governance and the conditions for achieving operational balance in the coming months.
A crucial signal to investors also remains. The exit of a major private operator from the capital of an African utility, followed by renationalization, raises questions about the clarity of the public-private partnership framework in the sector. Yaoundé will need to demonstrate that Socadel is not merely a defensive measure but rather the beginning of a broader reform of energy governance. The IMF’s diagnosis, issued in May 2026, is intended to significantly influence these forthcoming decisions.
