Cameroon’s Socadel Seeks CFA200 Billion to Ease Cash Strain and Restructure Debt

Cameroon’s state-owned power utility Socadel is seeking CFA200 billion from local banks to strengthen its cash position and refinance existing debt, part of an effort to ease financial pressure that affects payments across the country’s electricity sector.

On August 31, Socadel signed a mandate in Yaoundé with General Bank of Cameroon (GBC), Afriland First Bank and BGFIBank Cameroon to structure and syndicate two credit facilities worth a combined CFA200 billion.

General Bank of Cameroon will act as lead arranger, with Afriland First Bank and BGFIBank Cameroon as co-arrangers. The agreement does not mean the CFA200 billion has already been secured. Socadel said the mandate only starts the structuring and syndication process. Access to the funds remains subject to credit approvals, completion of contractual documentation and other standard conditions.

The proposed financing includes a CFA50 billion revolving credit facility to cover day-to-day cash needs and provide an operating liquidity reserve.

A second, CFA150 billion medium-term facility would refinance existing bank and supplier debt. The aim is to replace some short-term obligations with financing that can be repaid over longer periods, reducing immediate pressure on Socadel’s cash flow.

“This signing marks an important step in strengthening our ability to meet our commitments to our main partners,” Socadel Managing Director Oumarou Hamandjoda said. He added that stronger liquidity should help the company meet payment deadlines, secure operations and support more reliable electricity supply for households and businesses.

Targeted bank financing reaches CFA260 billion

The latest mandate brings to CFA260 billion the total amount Socadel is seeking to structure and raise from local banks. On July 1, 2026, the company gave General Bank of Cameroon a separate mandate to arrange CFA60 billion. That financing is intended for priority investments in electricity generation, distribution and commercial infrastructure.

The two operations therefore address different needs. The CFA60 billion is earmarked for investment, while the new CFA200 billion is mainly intended to support liquidity and refinance existing financial obligations.

None of the CFA260 billion has yet been presented as fully secured financing. Socadel said both mandates remain subject to the completion of their respective structuring and fundraising processes.

For General Bank of Cameroon, the latest deal extends its role in financing the state-owned utility. Managing Director Victor Noumoué said the CFA200 billion syndication demonstrates the bank’s commitment alongside Socadel and the Cameroonian government.

Socadel says this first phase of its financing plan has three objectives: stabilize its cash position, improve the regularity of payments to power producers, the National Electricity Transmission Company (Sonatrel) and other suppliers, and create the financial conditions needed to continue investment in the sector.

The stakes extend beyond Socadel’s own balance sheet. The utility collects most of the electricity sector’s revenue and channels payments to other companies across the industry. Cash shortages at Socadel can therefore delay payments to power producers, the transmission company and suppliers, contributing to the accumulation of arrears throughout the electricity sector.

Brice R. Mbodiam