SOCADEL Adopts CFA630bn Recovery Plan to Stabilise Power Supply, Address Legacy Debt

Cameroon Electricity Corporation (SOCADEL) has adopted a CFA630 billion recovery plan to strengthen electricity procurement, finance investments and address inherited sector debt.

The plan was approved by SOCADEL’s Board of Directors during its first meeting of the year in Yaoundé on May 28 and was publicly announced by Board Chairman Antoine Ntsimi on June 5. Integrated into the company’s 2026 budget, the programme balances revenue and expenditure at CFA630 billion, including CFA375 billion allocated to electricity and fuel purchases and CFA74.6 billion earmarked for investments.

The recovery programme comes as consumers across several regions continue to experience recurrent electricity outages, placing pressure on households and economic activity. According to the board, the budget framework is designed not only to support operational requirements but also to progressively settle commitments owed to suppliers and partners.

SOCADEL said the approach is expected to restore confidence among stakeholders, secure continuity of electricity services and strengthen the utility’s financial position. To support these objectives, the board authorised Director General Oumarou Hamandjoda, under the supervision of the chairman, to begin negotiations with development finance institutions and other lenders to mobilise additional resources for debt restructuring, treasury refinancing and future investments.

A major challenge facing the company remains the debt inherited from former operator ENEO. Figures presented during the board meeting indicate that inherited liabilities amount to approximately CFA800 billion, including CFA500 billion owed to suppliers. The scale of these obligations has made financial restructuring a central pillar of SOCADEL’s recovery strategy.

The planned mobilisation of new financing is expected to support both operational stability and the restructuring of existing obligations across the electricity sector. Beyond financing measures, the board also approved a series of organisational reforms aimed at improving the company’s performance and long-term sustainability.

These measures include implementing the government’s electricity sector roadmap, introducing governance reforms within the utility and preparing a broader restructuring and operational transformation programme. Management was also instructed to accelerate initiatives designed to improve service delivery and strengthen operational efficiency.

Among the immediate priorities identified by the board are an increase in the fuel budget for the northern regions and the implementation of an action plan to address electricity deficits in the East Region, particularly in Bertoua. SOCADEL said the measures are intended to improve electricity availability in areas facing persistent supply constraints.

Mercy Fosoh