Wednesday, April 24, 2024
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Eneo, Cameroon’s primary power utility, is currently navigating a restructuring of debts and grappling with liquidity issues, according to its CEO’s announcement on Thursday. The CEO confirmed that Actis, the company’s major shareholder, intends to sell its stake to the government, pending regulatory approval, as Actis transitions under the ownership of New York-based private equity firm General Atlantic. Actis presently holds a 51% stake in Eneo, while the Cameroonian government owns 44%.

Eneo’s CEO, Amine Homman Ludiye, disclosed that the company is indebted to financial institutions to the tune of 150 billion CFA francs ($247.02 million) and owes independent producers up to 360 billion CFA francs. Efforts are underway to restructure these debts with creditors. Additionally, outstanding bills totaling 266 billion CFA francs from last December remain unpaid by the government and state-owned enterprises, exacerbating Eneo’s financial strain and impeding its ability to pay service providers and invest in the sector.

Eneo is grappling with a supply deficit of 150 megawatts of electricity due to decreased water levels in various hydroelectric power plants, leading to power cuts in major cities like Douala and Yaounde. Ludiye anticipates this situation persisting until the end of March, citing a lack of liquidity hindering access to alternative power sources.

Discussions between Actis and the Cameroonian government regarding the sale of Actis’s stake to the country are ongoing. Finance Minister Louis Paul Motaze has indicated that the government’s offer is nearing finalization, with the deal expected to conclude by year-end. However, Ludiye clarified that these developments have yet to impact Eneo’s operations.

Eneo generates approximately 70% of the energy it distributes and relies on independent producers for the remainder in a market with a demand of nearly 1,000 megawatts. The company highlights significant challenges in service delivery due to inadequate transport and distribution infrastructure.

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