Gabon splits energy and water utility into two mixed-economy firms

The Société d’énergie et d’eau du Gabon (SEEG) will soon cease to exist. During a cabinet meeting held on Thursday, June 25, 2026, Gabonese authorities approved two draft laws that officially end the monopoly of the integrated operator and split its operations into two specialized entities. The first, named La Gabonaise des Eaux, will focus exclusively on the production and distribution of drinking water. The second, Électricité du Gabon, will take charge of the entire electricity value chain, from generation to commercialization. Both new entities will operate as mixed-economy companies, combining public and private capital.

Ending decades of a single integrated operator

Established in 1997 under a 20-year concession awarded to the French group Veolia, the SEEG represented the classic model of an integrated utility, bundling water and electricity under one roof. Common across Francophone Africa in the late 1990s, this model has shown increasing strain in Gabon, marked by frequent outages, aging infrastructure and persistent financial shortfalls. Even after the state resumed direct control of the concession in 2018, service quality continued to deteriorate, drawing complaints from both households and businesses.

By separating the two sectors, the government is betting on specialization. Electricity and water face distinct economic and technical realities. Electricity requires heavy investments in thermal and hydroelectric plants, energy-mix decisions and high-voltage grid management. Water, on the other hand, hinges on securing supply, treatment processes and expanding urban distribution networks. Keeping both activities under one roof often diluted investment priorities and slowed progress.

Why mixed-economy companies?

The decision to adopt a mixed-economy model reflects the Transition authorities’ determination to retain public oversight of essential services while inviting technical and financial partners to inject capital and expertise. This hybrid structure has been tested elsewhere on the continent with mixed outcomes. Senegal’s Sen’Eau, for instance, pairs the state with Suez for drinking-water distribution since 2020, while Côte d’Ivoire’s affermage model, involving CIE and SODECI, remains a regional benchmark.

Key details remain undisclosed: the exact capital split for each new entity, the names of potential strategic partners, a precise rollout schedule, and the fate of SEEG’s assets and staff. Transferring existing contracts, accumulated debts and international funding commitments will pose some of the most complex challenges during the transition period.

A political litmus test for the Transition

Beyond technical considerations, the reform carries significant political weight. Leaders from the Comité pour la transition et la restauration des institutions (CTRI) have made public-service improvement a cornerstone of their agenda. Water and electricity provision rank among the most visible grievances among Gabonese citizens, especially in the peri-urban areas of Libreville and Port-Gentil. Institutional change alone cannot repair decades of underinvestment in infrastructure.

Traditional lenders such as the African Development Bank and the French Development Agency will monitor the implementation of the new structure closely. Its credibility will hinge on the governance standards adopted by the two companies, the fairness of the tariff framework and the regulator’s ability to balance financial sustainability with service affordability. For Gabonese industrial players—particularly mining and timber firms with high energy demand—the stability of the new setup will be scrutinized. Both draft laws must still clear the Transition Parliament before they can take effect.