SNEL seeks investment and debt restructuring

The National Electricity Company (SNEL) of the Democratic Republic of Congo (DRC) is seeking new investments and debt restructuring to improve its financial situation and enhance electricity supply. According to a statement from SNEL's general director, Teddy Lwamba, the company has initiated discussions with six international financial institutions, including JPMorgan, HSBC, Standard Chartered, Absa Group, Dubai Islamic Bank, and EXIM Bank of India, to explore debt restructuring solutions and mobilize funding for electricity production and transmission projects. These discussions took place on October 21, 2026, in Dubai, United Arab Emirates, during a meeting organized in partnership with Invest Africa.

SNEL's debt breakdown

The SNEL's financial situation remains challenging, with an estimated debt exceeding 3 billion dollars, according to data from the National Energy Compact published in 2025. Financial debt accounted for approximately 75 percent of this debt, while commercial debts, tax debts, and social debts represented 13 percent, 11 percent, and 0.3 percent, respectively. Within the financial debt, commitments related to mining contracts and those with multilateral financial institutions represented 42 percent and 58 percent, respectively.

Government's restructuring plans

The Congolese government has committed to restructuring the SNEL's financial and commercial debts, which together represent about 88 percent of its debt. Proposed options include the repurchase of a portion of the domestic debt by technical and financial partners. A study on this restructuring is expected to be completed by the end of 2026, with the company aiming to fully cover its operational costs by 2029. However, the progress of the study and the amounts subject to restructuring remain unclear.

Infrastructure challenges

Beyond the debt, the SNEL's financial situation is also affected by difficulties in collecting receivables and the need for infrastructure maintenance. The Dubai discussions also focused on financing possibilities for the SNEL's electricity infrastructure portfolio, including hydroelectric projects, photovoltaic solar projects, battery storage, regional interconnections, transmission networks, and digital metering.

Major hydroelectric projects

Three hydroelectric projects were presented as investment opportunities: Luapula, with an estimated capacity of 800 MW for a cost of 1.68 billion dollars; Kibombo, with 246 MW for 662 million dollars; and Wanie Rukula, with 688 MW for 3.4 billion dollars. These three projects represent a cumulative capacity of 1,734 MW and a projected investment of 5.742 billion dollars. Invest Africa also reports a portfolio of approximately 4 billion dollars of photovoltaic solar projects, along with investment needs in transmission infrastructure, cross-border interconnections, and smart meters.

Public-private partnership potential

The discussions emphasized the potential for public-private partnerships (PPP) to support the development of these infrastructures. However, the amounts presented correspond to investment estimates and do not represent already mobilized financing. The SNEL seeks to reduce the weight of its existing financial commitments while attracting new capital to develop its production and transmission capacities. The realization of these ambitions will depend on the outcome of the discussions with financial institutions, the structuring of the projects, and the eventual conclusion of financing agreements.