Continental Focus, International Reach

Sonelgaz to Seek Foreign Funds

Thursday, August 1, 2019

Sonelgaz, the state-run utility in Algeria, plans to seek foreign loans to finance its energy development plans. The move will make it the first state-run Algerian firm to seek funds outside the country in decades.

Algeria’s subsidized electricity prices are very low compared to its neighbors Energy Minister Mohamed Arkab said, according to a Reuters report. Arkab said the firm had no plans to raise prices.

“External debt is an option, which is being examined in order to find the most comfortable and least restrictive conditions,” Sonelgaz CEO Chahar Boulakhras told a news conference. “Foreign indebtedness becomes a necessity. We need funding for our development plans.”

He went on to say that the plans were aimed at meeting consumption levels in the future amid increasing domestic demand in the country of 43 million people.