Cameroon needs  $12 billion, or CFA7,200 billion, to overhaul its power sector, Minister of Water and Energy Gaston Eloundou Essomba told the Africa Energy Forum in Cape Town. The forum, a major event for the African energy sector, ran from June 17 to June 20, 2025.

On June 20, Essomba unveiled Cameroon’s “energy compact” to representatives from the World Bank, the African Development Bank, and global investors. The strategic plan serves as a roadmap to achieve universal access to electricity by 2030, built around six major objectives. These include connecting an additional 8 million people to electricity, aiming for 100 percent access, and increasing clean cooking access to 40 percent, all while reducing national energy intensity by 16.9 percent by 2030.

The plan also seeks to boost installed power capacity to 3,000 megawatts, with 10 percent from renewable sources. It further aims to strengthen regional interconnections to achieve 1,000 megawatts of cross-border capacity.

The plan additionally forecasts a financial rebalancing of the sector, targeting a 90 percent collection rate. It relies on several reforms, including revising the legislative framework, creating a mini-grid code, and implementing fiscal and customs incentives. The plan also incorporates the restructuring of the national electricity company Eneo and the establishment of a payment stabilization fund.

This plan, initially unveiled in April, was also presented in Washington from April 21 to April 26, 2025, during the annual meetings of the World Bank and the International Monetary Fund. According to the Ministry of Water and Energy, “the presentation of this plan in Cape Town represents a decisive moment for Cameroon’s energy diplomacy, as it seeks to mobilize sustainable financing, strengthen investor confidence, and solidify its place among African leaders in the energy transition.”

The offensive comes as the country faces rapidly increasing energy demand from both households and industries. However, official data indicates that installed capacity remains limited to 1,982.4 megawatts. Hydropower and solar energy account for 1,379.6 megawatts and 30.83 megawatts respectively, making up over 63 percent of the energy mix.

To address this deficit, several projects are currently underway. These include the construction of the 500-megawatt Kikot hydro dam and the 75-megawatt Bini à Warak dam. The objective is to meet demand and ensure universal access to energy.

Source: Business in Cameroon