DR Congo's SNEL seeks debt restructuring with six banks
The state-owned electricity company aims to finance four new projects through international financial institutions.
The Société nationale d’électricité (SNEL) is discussing debt restructuring and financing for four electricity projects with six international banks. SNEL's Director General, Teddy Lwamba, met with representatives from JPMorgan, HSBC, Standard Chartered, Absa Group, Dubai Islamic Bank, and EXIM Bank of India on October 22, 2026, in Dubai. These discussions occurred on the sidelines of the Invest Africa forum.
SNEL currently dedicates 60% of its revenue to repaying commercial and financial debts, leaving only 15% for operations, maintenance, and investments. The company also faces challenges collecting payments from public institutions, which owe approximately 23.07 million USD for 2025, with only 3.88% of the expected 24 million USD paid. This situation highlights SNEL's financial fragility due to high debt servicing and poor revenue collection.
Financial analysts suggest that debt restructuring could improve SNEL's cash flow through rescheduled payments. However, they caution that new investments require better collection rates, sustainable pricing, and careful resource management. The outcome of the Dubai discussions will depend on the agreements reached and their ability to increase electricity generation and transport capacity.
Why it mattersThe state-owned electricity company SNEL is seeking to restructure its debt and secure financing for new projects, impacting its financial operations and future investments.