AfDB grants a €74 M loan to Cameroon for electricity sector reforms
The Board of Directors of the AfDB Group granted a €74.25 million loan to Cameroon to implement the first phase of the Electricity Sector Recovery Support Programme.
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Côte d’Ivoire, Abidjan: The Board of Directors of the AfDB Group granted a €74.25 million loan to Cameroon to implement the first phase of the Electricity Sector Recovery Support Programme.
The programme will support the Cameroonian government to implement the reforms necessary in the energy sector in 2024 and 2025 so that the country can produce enough electricity to cover its national requirements of 5,000 MW and build a reserve to export energy to neighbouring countries, particularly Chad. The reforms will enable Cameroon to reduce its commercial losses on electricity, improve revenue collection and deal more efficiently with energy flows in distribution, by migrating metering from a post-paid to a pre-paid mode and installing smart meters, including in public buildings.
The programme aims to develop an information-education-communication plan aimed at the population, to publicize the new type of metering and introduce customers to pre-payment. The Bank’s aims to build human resource capacity so that Cameroon has a critical mass of qualified personnel to work throughout the electricity sector value chain, from production to knowledge distribution, with the aim of facilitating faster responses to technological, organizational, environmental, climate-related and financial needs in the sector.
The programme will contribute to the development of a low-cost, integrated master plan to build planning capacity in the electricity sector, covering the whole of the electricity value chain in Cameroon and taking gender concerns into account. The whole population of Cameroon could benefit, including small and medium-sized enterprises (SME), which will see several constraints on the development of their activities, including the irregularity of the energy supply, removed. This should improve the business environment and allow the Cameroonian economy to attract more capital.
Source: African Development Bank Group
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