Cameroon takes control of Eneo for FCFA 78 billion

 Cameroonian government takes  decisive step in its energy strategy: it has obtained an agreement in principle to buy Actis’ 51% stake in Eneo, the country’s main electricity producer and distributor. Proposed amount: FCFA78 billion, or approximately 119 million euros.

If the transaction is confirmed, the State will hold 95% of the capital, compared with 5% for the employees. A major change that could strengthen its energy sovereignty, at a time when load shedding continues to penalize households and businesses.

But the agreement remains conditional on the prior settlement of disputed claims, notably arrears relating to technical services contracts and personnel, still in dispute before the CCI de Paris. These disputes concern investments not validated by the sector regulator, Arsel.

The final price has been the subject of internal debate: between the 80 billion FCFA proposed by the Ministry of Finance on the basis of a KPMG report, and the 45 billion sought by certain people close to the Palace, due to the grievances accumulated against Eneo (abusive invoicing, poor quality of service).

This takeover is part of a stated political desire to reorganize the governance of the electricity sector. It could pave the way for new public investment in production and distribution, but it could also lead to the creation of a new electricity market.

source: EcoMatin