Société Nationale d’Electricité (SNEL), the public power utility of the Democratic Republic of Congo (DRC), owes over $3 billion, more than three times its sales in 2022. The African Development Bank (AfDB) recently disclosed the figure in its Compact Énergétique National report.
According to the source, SNEL’s debt breaks down into financial debt (over 75%), commercial debt (13%), tax obligations (11%), and social debt (0.3%). Financial debt alone exceeds $2 billion; and stems from mining contracts (42%) and multilateral investment banks (58%).
The Congolese government has committed to restructuring SNEL's commercial and financial liabilities, which account for 88% of its total debt. The plan includes having technical and financial partners buy back portions of SNEL's domestic debt. A comprehensive restructuring study is expected to be completed by the end of 2026.
This debt restructuring is part of broader reforms to help SNEL fully cover operating costs by 2029. Planned initiatives include separating assets, accounts, and personnel according to value chain segments—production, transport, distribution, and retail—and implementing capacity-building programs and performance-based incentives. The government also intends to introduce a tax amnesty plan for SNEL's arrears to various financial authorities.
A regular payment mechanism for official institutions and other legitimate claimants should also be set up, alongside a new tariff regime designed to allow SNEL to cover its costs while delivering efficient services.
The utility’s financial woes are exacerbated by electricity tariffs that fall below recovery costs. Currently, electricity is billed at an average rate of $0.09 per kilowatt-hour, insufficient to meet operational expenses. Compounding these issues are payment arrears to public entities totaling around $110 million and a low bill collection rate–61% in 2022. This severely hampers SNEL's ability to invest in infrastructure maintenance and expansion, leading to high technical and non-technical losses estimated at 46% in 2022.
SNEL’s restructuring is part of a larger transformation within the DRC's energy sector. Through the National Energy Compact, the government aims to mobilize nearly $37 billion by 2030—approximately $20 billion from private sector investments—to enhance electricity access and modernize energy infrastructure. The goal is to boost the electrification rate, from 21.5% in 2024 to 62% (60 million people) by 2030.
This article was initially published in French by Timothée Manoke (intern)
Edited in English by Ola Schad Akinocho
