AfDB loans Cameroon 74 million euros to boost electricity sector

The African Development Bank (AfDB) has approved a loan of €74 million (approximately FCFA 48.5 billion) to the Cameroon government to bolster the country’s electricity supply.

The loan is designated to facilitate the implementation of the first phase of the Electricity Sector Recovery Support Programme (PARSEC), as announced by the bank on its official website.

According to the AfDB, this loan will support the Cameroonian government in implementing crucial reforms within the energy sector in the years 2024 and 2025.

The overarching goal is to enable Cameroon to generate sufficient electricity, reaching a capacity of 5,000 megawatts, and build reserves for potential energy exports to neighboring countries, particularly Chad.

Highlighting the broader impact of PARSEC, the AfDB emphasized that the program would contribute to the development of a comprehensive, cost-effective, and integrated master plan.

This plan aims to enhance planning capacity across the entire electricity value chain in Cameroon, with a particular focus on addressing gender-related concerns.

The long-term vision for the project is to establish a consistent and reliable electricity supply for Cameroonians, thereby fostering a more robust economic environment.

Despite the country’s substantial electricity potential, Cameroon has grappled with issues such as low voltage, frequent power cuts, and significant parts of the nation experiencing interruptions in electricity supply.

While Cameroon’s overall electricity access rate stands at around 65%, recent research from 2021 reveals that only 32% of Cameroonian households have access to a public grid connection through a personal subscription.

The imminent official launch of Cameroon’s largest dam, the Nachtigal hydropower plant, scheduled for January 2024, promises to address some of these electricity challenges.

Expected to contribute 420MW to Cameroon’s energy grid, the Nachtigal hydropower plant will cover 30% of the country’s energy needs.

Mimi Mefo Info