The state-owned Electricity Development Corporation has converted CFA10.289 billion in prior government funding into share capital, increasing its registered capital by 68.6%.
Cameroon's Electricity Development Corporation (EDC) has officially increased its share capital by 68.6%, from CFA15 billion to CFA25.289 billion. This adjustment was achieved through a debt-to-equity conversion, formalizing CFA10.289 billion in funds previously provided by the government. The transaction, approved at an extraordinary general meeting, does not represent new state financing, as the funds were already transferred to the company between 2008 and 2010.
The capital increase was registered with the Yaoundé-Centre Administratif Court of First Instance on October 7, 2026. Financial statements from EDC confirm the origin of these funds, noting that the Ministry of Finance began providing the money in 2008 and continued until 2010. Initially recorded as investment grants due to the unspecified nature of the funding, the classification was later flagged by the company's auditors.
The conversion of these past government disbursements into equity aims to reflect the actual financial structure of the state-owned enterprise. This move follows an audit recommendation and clarifies the company's capital base without introducing additional state expenditure at this time. The company's registration update is now being processed.
Why it mattersInvestors are affected because the company has restructured its capital, converting government debt into equity, which impacts its financial reporting and balance sheet.
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