Cameroon Authorizes Electricity Transmssion Company SONATREL to Open Subsidiaries
Business in Cameroon
Paul Biya, the President of the Republic of Cameroon, signed a decree on April 23, 2020, approving the statutes of the National Electricity Transmission Company (SONATREL), whose capital is XAF10 billion.
Article 6, paragraph 1, of the presidential decree, provides that “SONATREL may create subsidiaries to which it will entrust specific missions in line with its corporate purpose.” The following article states that these subsidiaries must be created by resolution of the board of directors. This thus gives the limited company greater flexibility in its missions.
The said missions are the management of the public transport network, the planning, development, and construction of the public electricity transport network, on behalf of the State, which is the company’s sole shareholder.
In addition to giving more flexibility to the company, the decree hints that the capital of SONATREL could also be open to external investors. “SONATREL’s shareholding may be open to other public or private entities,” says article 2 paragraph 2.
Created in 2015, SONATREL finances its activities through income from the management of the electricity transmission network. According to a tariff profile published on December 11, 2018, by the sector’s regulator, SONATREL collects XAF10.626 per kWh of energy transported.
