(Business in Cameroon) – Yesterday, Cameroonian President Paul Biya authorized Minister of Economy, Alamine Ousmane Mey, to sign a CFA24.8 billion financing deal with the African Export-Import Bank (Afreximbank). This will be the second loan Cameroon has secured from the bank for the solar electrification project, which aims to power 200 rural communities across the country.
As a reminder, President Biya has already authorized the Minister of Economy to contract a CFA35 billion loan with Afreximbank on March 7, 2023. The related presidential decree was signed on February 6, 2023. The loan was then used to provide solar power to over 13,000 rural households.
The investments from these two financial contributions from Afreximbank are part of the third phase of the solar electrification project, which aims to power 1,000 communities in Cameroon. Launched in 2016 by the Cameroonian government, the project is being implemented by Chinese partner Huawei Technology. The first two phases, still being implemented, aim to electrify 165 and 184 communities, respectively, according to officials.
Ultimately, this energy project will help increase the rural electrification rate in Cameroon, which the Rural Electrification Agency (AER) estimates at just 20%. However, the project will only bring electricity to 11% of the 9,000 communities still without power. According to the Minister of Water and Energy, Gaston Eloundou Essomba, CFA874 billion will be needed to fully electrify all the communities still lacking electricity.
In addition to improving access to electricity in rural areas, the vast 1,000-community solar electrification project will help diversify the country’s energy mix. Currently, the energy mix in Cameroon is largely dominated by hydroelectric power, while solar, wind, and biomass combined represent barely 1%, according to official data.
