PRESS RELEASE-SOCADEL/General Bank of Cameroon/Afriland First Bank/BGFIBank Cameroun: SOCADEL Initiates Process to Raise Extra 200 Billion CFAF from Local Banks
The aim of this transaction is to increase liquidity, restructure existing commitments and help financially stabilise the electricity sector.
Yaounde, Monday 31 August 2026
Today, the Cameroon Electricity Corporation (SOCADEL) signed, with General Bank of Cameroon (formerly Société Générale Cameroun), Afriland First Bank and BGFIBank Cameroun, a mandate to structure and syndicate, alongside local banks, a global facility of a target amount of CFAF two hundred billion (200, 000, 000, 000). General Bank of Cameroon is the arranger and syndicate leader, while Afriland First Bank and BGFIBank Cameroun are co-arrangers.
Let’s be clear: signing this mandate opens the structuring and syndication phase. It does not mean the funds have been made available right away. The funds will be mobilised subject to loan authorisations, finalisation of contract documents and fulfilment of standard conditions.
Two Additional Facilities for a Target Amount of CFAF 200 billion
The proposed deal is hinged on two syndicated lines, which meet two distinct yet complementary needs:
- Facility 1 - renewable loan : CFAF 50 billion. The aim of this line is to meet current cash flow needs and build an operational liquidity reserve.
- Facility 2 - medium- term loan : CFAF 150 billion. The aim of this line is to refinance existing bank loans and trade payables, over longer maturities, in order to reduce short-term commitments.
A Governance- and Accountability-oriented Recovery Approach
This transaction is part of SOCADEL’s financial and operational recovery plan. On 28 May 2026, the Board of Directors authorised that negotiations should be started and tasked the General Manager with spearheading them, under oversight from the Board Chair.
“Our priority is clear : restore trust over the long term, improve on service continuity and quality, as well as generate concrete results for users. This mandate is a defining stage in SOCADEL’s recovery. We would like to hail the mobilisation of local banks, which are responding to the Head of State’s appeal to restructure SOCADEL and, more generally, transform the electricity sector,” declared Antoine NTSIMI, SOCADEL Board Chair.
The transaction will be performed with due regard for SOCADEL’s internal procedures, applicable regulations and lender control requirements. The resources effectively mobilised will be allocated to the stated aims. Their use will be monitored documentarily and reported regularly to relevant company bodies and financial partners, in accordance with contractual commitments.
"This signing is an important step in strengthening our ability to honour our commitments to our main partners. Liquidity is not an end in itself : it has to enable us better respect our due dates, secure our transactions and support the supply of more reliable electricity to both households and companies. This approach is built on financial discipline, transparency and accountability,” declared Oumarou Hamandjoda, General Manager of SOCADEL.
Long-term Bank Mobilisation
The transaction announced today comes after a maiden mandate was signed, on 1st July 2026, with General Bank of Cameroon to raise CFAF 60 billion. This separate mandate is related to financing priority investments in generation, distribution and commercialisation infrastructure, in order to progressively improve on service quality.
The mandates of 1st July and 14 August 2026 are complementary : the first targets priority investments while the second targets operational liquidity and refinancing of existing commitments. They are the first components of SOCADEL’s financing plan and remain, each, subject to successful conclusion of the corresponding structuring and mobilisation processes.
“As for the arranger and syndicate leader we are, this syndication transaction of CFAF 200 billion confirms the commitment of General Bank of Cameroon to SOCADEL and to the State of Cameroon. Beyond the amount, it is a strong signal for the financing of our country’s defining infrastructure. It is also a token of the solidity of our bank and a commitment to provide decisive support to our customers on one hand, and to support our country’s economic growth on the other hand.” declared Victor NOUMOUE, Managing Director of General Bank of Cameroon.
In their capacity as co-arrangers, Afriland First Bank & BGFIBank Cameroun are putting their structuring expertise and market knowledge at the service of syndication with local banks.
“BGFIBank Cameroon is committed to working alongside the Government of Cameroon to make a lasting contribution to the stability of the electricity sector, which is a key driving force for industrialisation. As arranger, we will support the reforms undertaken by SOCADEL, which will have a tangible impact on the supply of electricity to households and businesses,” stated Mr ABAKAL MAHAMAT, Managing Director of BGFIBank Cameroun.
Through this first phase of its financing plan, SOCADEL is pursuing three priorities: stabilise its cash flow, make payments to electricity-generating entities, SOCADEL and other vendors more regular, as well as create conditions for more lasting investment in the electricity sector.
Creating Conditions for More Reliable Electricity
The Cameroon electricity sector has, for several years, been grappling with financial imbalances and unrelenting cash flow strains. These constraints ripple across the entire value chain: electricity-generating entities, power transmission company SONATREL, vendors and SOCADEL, which is involved in generation, handles distribution under its concession and collects most of the sector’s revenue.
In a system where financial flows are closely interconnected, a liquidity shortfall can be transferred from one link in the chain to another — from generation to transmission then to distribution — and drive the accumulation of arrears. By increasing its available cash flow and by rescheduling existing commitments, the overall facility aims to reduce these strains, make payments more regular and support the continuity of operations.
More rigorous management and better structured financing should help deliver more reliable electricity to households, companies and the Cameroon economy.
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Associated documentation
Projet de CP Conjoint - Signature Mandat Emglish version
Media Contacts
SOCADEL: Babette TCHIENGOUA, Media Relations Officer, [email protected] , 691 836 060
General Bank of Cameroon: Blaise ETOA TSANGA, Marketing and Communication Director, 699949366
BGFIBank Cameroun: Krystie Kondo, Communication Officer BGFIBank Cameroun, [email protected]
Afriland First Bank: communication@
