The chapter of the SEEG has officially closed. The Gabonese government has confirmed the dissolution of the Société d’énergie et d’eau du Gabon, which served as the nation’s long-standing public water and electricity operator for over four decades. In its place, two distinct companies will emerge, each dedicated to a specific utility sector. This pivotal decision, made during a recent council of ministers meeting in Libreville, concludes months of anticipation and conjecture surrounding the future of an operator plagued by significant technical and financial shortfalls.

An era ends for Gabon’s public service operator

The SEEG, which was initially managed under concession by the French group Veolia before its withdrawal in 2018, had subsequently been re-nationalized and operated by the Gabonese State. However, the company struggled to regain stability, consistently leading to widespread water cuts and electricity load shedding across the country’s major urban centers. Cities like Libreville, Port-Gentil, and Franceville frequently experienced power outages, provoking considerable frustration among consumers and economic stakeholders. Following the change of government in August 2023, the transitional authorities swiftly identified the reform of this vital sector as a key priority within their national development agenda.

The assessment conducted by public authorities revealed a grim picture: aging infrastructure, persistent underinvestment, opaque governance, and a detrimental blending of responsibilities across production, transmission, and distribution. The strategic separation of these activities is specifically designed to clarify accountability and attract specialized investors keen on injecting much-needed capital into both the electricity and water supply chains.

Two specialized entities for water and electricity services

In practical terms, this reform entails the establishment of one company solely focused on electricity and another dedicated exclusively to potable water. This segmentation strategy, already successfully adopted by several nations within the sub-region, allows for the independent management of distinct economic models for each utility. Electricity distribution, for instance, involves complex heavy production, extensive high-voltage networks, and a diverse energy mix. Conversely, the hydraulic sector operates under a territorial and public health framework, grappling with unique challenges related to water capture, treatment processes, and rural service provision.

This new institutional framework is also expected to facilitate the engagement of targeted technical and financial partners. For several years, international funding bodies, including the African Development Bank and the World Bank, have advocated for clearer organizational structures as a prerequisite for committing long-term financing. The International Finance Corporation (IFC) had previously expressed interest in supporting sectoral projects, contingent upon a comprehensive overhaul of the existing legal and operational framework.

An industrial and social challenge for the transitional government

Nevertheless, the implementation phase is anticipated to be intricate. The future of approximately 2,000 SEEG employees represents a particularly sensitive issue, as do the management of accumulated liabilities and ensuring uninterrupted billing for customers. The authorities must also meticulously define the precise scope of the new concessions, establish transparent mechanisms for tariff setting, and delineate the mandate of the forthcoming regulatory authority. Several labor unions have already voiced demands for assurances regarding the preservation of social benefits and a commitment against involuntary redundancies.

From a broader strategic perspective, this reform aligns with the transitional president, Brice Clotaire Oligui Nguema’s, stated ambition for enhanced economic sovereignty. Gabon aims to reclaim control over its critical national assets while simultaneously guaranteeing the reliable provision of essential services. The nation possesses substantial hydroelectric potential, notably from the Grand Poubara and Kinguélé Aval dams, which remains largely under-utilized relative to national demand. The immediate challenge now is to translate this natural endowment into tangible operational performance for both households and industries.

While a detailed timeline for the establishment of the two new entities has not been publicly released, the government anticipates a phased implementation over the coming months. The ultimate success of this transformative reform will hinge on the quality of the governance structures adopted and the capacity to secure the necessary capital for crucial catch-up investments.