Gabon dissolves SEEG, two new firms take over water and electricity

The SEEG era has officially ended in Gabon. The government has confirmed the dissolution of the Société d’énergie et d’eau du Gabon, the historic operator of public water and electricity services for more than four decades. In its place, two separate companies will be established, each focused on a specific sector. The decision, taken during a recent council of ministers meeting in Libreville, puts an end to months of uncertainty and speculation over the future of an operator plagued by technical and financial deficits.

End of a historic public service operator in Gabon

After French group Veolia relinquished its concession in 2018, the Gabonese state took over the SEEG. However, the company never regained stability, leading to frequent water cuts and power outages in major urban centres. Libreville, Port-Gentil and Franceville regularly experienced blackouts, sparking anger among residents and businesses. The transition authorities, who came to power after the overthrow of Ali Bongo in August 2023, made reforming the sector a priority in the national development plan.

The government’s assessment has been harsh. Ageing infrastructure, chronic underinvestment, opaque governance and a blurring of roles between generation, transmission and distribution are among the main complaints. Splitting the activities is intended to clarify responsibilities and attract specialised investors capable of injecting capital into each of the two segments.

Two specialised entities for water and electricity

Specifically, the reform creates one company dedicated to electricity and another to drinking water. This separation, already adopted by several countries in the sub-region, helps isolate the distinct economic models of each sector. Electricity distribution relies on heavy-generation logic, high-voltage networks and an energy mix. Water services follow territorial and public-health considerations, with very different issues around catchment, treatment and rural supply.

The new institutional framework should also facilitate the arrival of targeted technical and financial partners. International lenders, such as the African Development Bank and the World Bank, have for years demanded clearer structures before committing long-term financing. The International Finance Corporation (IFC) had already expressed interest in sector-specific projects, provided the legal framework was overhauled.

Industrial and social challenge for transition authorities

Nevertheless, implementation will be delicate. The fate of the approximately 2,000 SEEG employees is a sensitive issue, as is the assumption of accumulated debts and the continuity of billing for customers. Authorities must also define the exact scope of concessions, pricing mechanisms and the role of the future regulatory body. Several unions have already demanded guarantees to preserve social benefits and avoid abrupt layoffs.

Strategically, the reform aligns with the broader economic sovereignty agenda of transition president Brice Clotaire Oligui Nguema. Gabon wants to regain control over its strategic assets while securing the supply of essential services. The country has considerable hydroelectric potential, notably with the Grand Poubara and Kinguélé Aval dams, still largely underused relative to national demand. The challenge now is to turn this natural endowment into operational performance for households and industries.

The timetable for setting up the two entities has not been detailed, but the government anticipates a gradual rollout over the coming months. The reform’s success will depend on the quality of governance and the ability to mobilise the capital needed for catch-up investments.