(Business in Cameroon) – Steel giant Prometal has struck a major deal with Cameroon’s national electricity transmission company, Sonatrel, giving it direct access to the high-voltage grid. The agreement, signed on April 7 in Douala by Prometal CEO Hayssam El Jammal and Sonatrel head Victor Mbetmi Nyanga, will help the company power its plants at full capacity and ramp up production.
As part of the deal, a 50 MVA substation will be made available right away, with a second 75 MVA station to follow in the coming months. Both were built by the City Centre/Alliances Services/Coget Sarl consortium for CFA4.3 billion, after a public tender launched by Sonatrel.
Prometal says the new setup will give it more stable power, allow it to negotiate with the supplier of its choice, and cut its electricity bill by eliminating distribution charges. For Sonatrel, the deal means new revenue, a broader industrial client base, and stronger cash flow to fund future projects.
Energy Minister Gaston Eloundou Essomba said the deal reflects the government’s push to make Cameroon more attractive for industrial investment. He called it a turning point for Prometal, which is the country’s second-largest industrial energy consumer, with five production units and a current demand of 45.5 megawatts.
The minister also reassured manufacturers that strategic power projects are on track — including the transfer of electricity from the Nachtigal dam to Douala, and upgrades to the existing grid.
Encouraged by the move, Prometal’s CEO said the company plans to keep expanding. A new plant in Kribi is in the pipeline, and once operational, the group’s energy needs will climb to over 60 megawatts. With the added power capacity, Prometal aims to boost its annual output from 360,000 to 600,000 metric tons of finished steel. That should help meet rising domestic demand, cut back on imports, and position Cameroon for a smoother entry into the African Continental Free Trade Area (AfCFTA).
Sonatrel’s chief, Victor Mbetmi Nyanga, said the company is fully committed to improving power access for local industries. He unveiled a short- and medium-term investment plan worth over CFA33 billion, which includes three new substations in Douala-Logbaba, three in Bekoko, one in Koumassi, one in Bafoussam, two in Yaoundé, and several more across the country.
