Socadel Opens First Funding Round to Rebuild Cameroon’s Electricity Network

Cameroon’s state-owned electricity utility Socadel has appointed General Bank of Cameroon, formerly Société Générale Cameroun, to structure a CFA60 billion fundraising on the local banking market to finance priority investments in the country’s electricity network.

According to a July 1 information notice, the company signed a mandate authorizing the bank to arrange and raise the financing. The funds will support investments in electricity generation, distribution, and commercial infrastructure.

The transaction marks the first banking operation under Socadel’s turnaround plan following the government’s takeover of former power utility Eneo. It comes as Cameroon continues to face frequent power outages, voltage fluctuations, and electricity supply disruptions affecting households and businesses alike.

In its statement, Socadel said it intends to focus on “concrete, measurable actions that directly address customers’ essential needs.”

“Our priority is clear: restore confidence, improve service reliability, and deliver visible results for customers,” said Antoine Ntsimi, chairman of the company’s board. “We are moving forward with discipline, humility, and determination. Results must speak louder than announcements.”

First Step in a Broader Financing Plan

The mandate follows a May 28, 2026 decision by Socadel’s board authorizing CEO Oumarou Hamandjoda, under the supervision of Board Chairman Antoine Ntsimi, to negotiate financing with local banks.

The board had outlined three objectives: finance new investments, refinance working capital, and restructure the company’s financial debt. For now, however, the mandate signed with General Bank of Cameroon covers only the investment component. Socadel said the financing will be used to strengthen and expand electricity infrastructure.

Talks with lenders on refinancing short-term liquidity needs and restructuring existing debt are continuing. The company said it expects to award a separate mandate covering those operations in the coming days. Hamandjoda described the agreement as the first concrete step in restoring the utility’s financial health.

A Modest Start to a Much Larger Challenge

The planned CFA60 billion fundraising comes against the backdrop of severe financial pressures. Since May 2026, Socadel has operated with share capital of CFA43.9 billion, but it also inherited significant financial liabilities following the state’s takeover of Eneo. The company carries an estimated CFA850 billion debt burden and faces a monthly cash shortfall of about CFA13 billion.

According to figures previously reported by Investir au Cameroun, Socadel collects roughly CFA31 billion in monthly revenue while its operating expenses approach CFA44 billion.

Against that backdrop, the planned CFA60 billion financing represents an important source of funding for urgent infrastructure projects but remains modest relative to the company’s overall liabilities. The amount is equivalent to roughly 7% of Socadel’s estimated debt.

The company’s financial recovery will therefore require much more than this initial operation. Its restructuring plan also includes refinancing nearly CFA177 billion in debt and short-term borrowing. Part of that effort is expected to involve a local bank loan of at least CFA150 billion with a seven-year maturity and a grace period of up to two years.

The mandate awarded to General Bank of Cameroon therefore addresses only one part of Socadel’s financing needs. It is designed to fund investments that can improve service quality before the company moves on to larger refinancing and debt restructuring operations.

Delivering Better Service Will Be the Real Test

The immediate challenge for Socadel is to convert the mandate into actual financing—and then into measurable improvements in electricity service. Cameroon’s power sector continues to struggle with unreliable service, high technical and commercial losses, and persistent liquidity constraints that affect the entire electricity value chain, from producers to suppliers.

Mobilizing financing from local banks is an important first step while the company prepares to tap international financial markets, a move planned for 2027.

Whether the strategy succeeds will depend on several factors, including Socadel’s ability to secure the financing, negotiate favorable lending terms, complete the planned investments quickly, and demonstrate measurable improvements in the reliability of electricity supply.

The agreement with General Bank of Cameroon therefore marks an important milestone, but only the beginning of a much broader recovery plan. Ultimately, Socadel’s turnaround will be judged less by the amount of money it raises than by its ability to deliver better electricity service to households, businesses, and industries across Cameroon.

Ludovic Amara