In its latest assessments of May 2026, the International Monetary Fund (IMF) warns Cameroon about the financial consequences of the renationalization of Energy of Cameroon (Eneo), which has since been renamed “Cameroonian Electricity Company (Socadel)”. The international financial institution estimates that “this development transfers unresolved structural charges to the national budget, in a context where budgetary margins remain narrow.”
“The public electricity operator, now almost entirely owned by the State (95% of the capital, with 5% held by employees), displays an unbalanced economic model,” says the IMF. And for good reason, explains the Bretton Woods institution, “revenues from billing are not sufficient to cover the actual costs of production, transport, and distribution.” Furthermore, during the operation that led to this transformation, Socadel inherited a total debt volume estimated at nearly 800 billion CFA francs (almost 1.5 billion USD). In addition to this heavy legacy of the former electricity distribution company in Cameroon, according to the Eneo Restructuring Plan 2026-2028, “there is a gap between the revenues collected and the expenses to be covered amounting to 13 billion CFA francs (approximately 23 million USD) per month.” To complete this [bleak] picture, as a financial legacy from Eneo to Socadel, the aforementioned restructuring plan reveals that “out of an average monthly actual billing of 40 billion CFA francs (approximately 71.5 million USD), Eneo actually only collected 31 billion (approximately 55.4 million USD).” 82.5% of these 40 billion CFA francs, or 33 billion CFA francs, are owed to Eneo by households and industries.
At the heart of the problem lies the pricing policy. The prices applied to consumers remain below the actual costs of the electrical system. This socially sensitive choice has long helped contain households’ energy bills. It has also generated implicit subsidies, the weight of which is now directly reflected in the public accounts.
The IMF emphasizes that “without progressive adjustments to tariffs, the company’s financial situation will remain structurally deficit.” In the long run, this dynamic could increase pressure on the state budget, to the detriment of other priorities such as public investment or social spending.
Another point of concern is the accumulation of arrears, especially from public administrations. Indeed, 7 billion CFA francs (17.5% of the total amount) is owed, with 3 billion by public administrations and decentralized territorial collectivities; 3.5 billion by public entities (Alucam, Camwater, Camtel, Sonara, CRTV, hospitals, and universities); and 0.5 billion by cement companies. The State then finds itself in a paradoxical position, both as a majority shareholder and a significant debtor of the company it controls. This dual role further weakens the operator’s cash flow and complicates any rapid recovery trajectory.
The recent legal transformation of the company, intended to mark a new beginning, does not solve the accumulated financial legacy. Commitments to independent electricity producers, combined with still insufficiently modernized infrastructure, continue to generate high costs. Without operational efficiency improvements, these constraints will remain a burden on public finances.
For Cameroon, the stakes go beyond the energy sector alone. The credibility of the budget trajectory is at stake in an environment marked by increasing financing needs and commitments to international financial partners. Any prolonged drift in the electricity sector could complicate debt management and the sustainability of public finances.
Nationalization, presented as a lever for economic sovereignty, thus appears as an incomplete solution. Without a profound reform of the economic model, improved collection, and controlled tariff revisions, there is a real risk of seeing sector imbalances transform into lasting budget vulnerability.
By taking back control of electricity, the Cameroonian State has gained strategic control. It also inherits a heavy financial responsibility, which will require delicate political choices to prevent the lights from going out… in the public accounts.
