Cameroon grants Prometal direct power access to boost industrial growth
The Cameroonian government has given the green light to Prometal, a leading steel transformation company in Cameroon and Central Africa, to secure a 90-megawatt power supply directly from the Electricity Development Corporation (EDC), the state-owned entity managing the country’s electricity assets. Finalizing the agreements will follow a series of consultations scheduled from June 8 to 12, 2026, at the Prime Minister’s office in Yaoundé. A directive dated June 1, 2026, signed by Secretary-General Séraphin Magloire Fouda and addressed to Minister of Water and Energy Gaston Eloundou Essomba, outlines the roadmap for this arrangement.
Prometal joins elite group of industries tapping Cameroon’s hydropower
The upcoming talks will focus on finalizing the special pricing terms granted to Prometal since February 2025 and drafting the definitive contractual documents. The arrangement hinges on two key agreements: a supply contract between EDC and the steel manufacturer, and a compensation contract between EDC and the Cameroonian Electricity Company (Socadel), which emerged from the restructuring of Eneo. Once these documents are signed, Prometal will become the second company in Cameroon to draw power directly from hydropower sources, following the Cameroonian Aluminium Company (Alucam).
The precedent set by Alucam carries significant weight in this setup. Recognized as Cameroon’s largest electricity consumer, Alucam once accounted for up to 40% of the country’s total power output. It is directly connected to the Edéa dam, an infrastructure now under Socadel’s management, alongside the Songloulou dam. In contrast, Prometal will draw power from EDC’s hydropower plants, namely Lom Pangar—with its 30-megawatt foot hydroelectric station—and Memve’élé, which boasts a peak output of 211 megawatts.
Prometal’s energy demand surges amid industrial expansion
The shift to direct power supply aligns with Prometal’s aggressive industrial growth. Operating five facilities in the Douala-Bassa industrial zone—Prometal 1, 2, and 3, Profab, and Progaz—the company’s energy consumption skyrocketed from 26 megawatts in 2024 to 40 megawatts in 2025. Projections indicate further increases to 60 megawatts in 2026 and 90 megawatts by 2027, driven by the launch of Proalu, a new plant dedicated to producing aluminum sheets and electrical cables.
For a major industrial player like Prometal, securing a stable power supply and controlling electricity costs are critical for maintaining competitiveness. The traditional grid, plagued by structural inefficiencies in production, transmission, and distribution, could no longer reliably support such rapid demand growth without jeopardizing manufacturing operations. Direct power supply from EDC offers a solution by linking tariffs to water rights, bypassing the downstream segments of the power system.
EDC leverages Prometal’s deal to fund new infrastructure projects
From EDC’s perspective, the financial benefits of this arrangement are clear. The company’s revenue model relies heavily on water rights fees, with proceeds reinvested into new power infrastructure. However, payment delays from Socadel, its primary customer, have strained this financial cycle. The addition of Prometal, a financially robust counterparty, provides welcome relief to EDC’s cash flow. Insiders reveal several pending projects awaiting funding, including the 400-megawatt Mbakaou hydropower plant, the Memve’élé 2 expansion, and a proposed 50-megawatt solar plant at the Memve’élé site.
The financial footprint of Prometal in Cameroon’s power sector is substantial. Between 2016 and 2025, the company paid a total of 42 billion CFA francs to Eneo (now Socadel) and the National Electricity Transport Company (Sonatrel), averaging 4.2 billion CFA francs annually. Redirecting these payments to EDC could reshape the dynamics among industry players and accelerate the rationalization of the country’s energy infrastructure portfolio.
