Cameroon boosts industrial growth with direct power supply to Prometal

Cameroon’s government has granted Prometal the green light to secure 90 megawatts of electricity directly from the Electricity Development Corporation (EDC), the state-owned entity managing the country’s power infrastructure. The final agreements will be finalized during a series of meetings scheduled from June 8 to 12, 2026, at the Prime Minister’s office in Yaoundé. A directive issued on June 1, 2026, by the Secretary-General Séraphin Magloire Fouda and addressed to the Minister of Water and Energy, Gaston Eloundou Essomba, outlines the roadmap for this arrangement.

Prometal joins elite group of Cameroon’s direct power consumers

The negotiations will focus on the special pricing model granted to Prometal since February 2025 and the finalization of contractual documents. Two key agreements will structure this deal: a supply contract between EDC and the steel manufacturer, and a compensation contract between EDC and Société camerounaise d’électricité (Socadel), a recently restructured entity from Eneo. Once signed, Prometal will become the second company in Cameroon to draw power directly from dams, following the footsteps of Compagnie camerounaise de l’Aluminium (Alucam).

The precedent set by Alucam plays a pivotal role in this new arrangement. Long recognized as Cameroon’s largest electricity consumer—accounting for up to 40% of national production at its peak—the aluminum giant is directly connected to the Edéa dam. Like Edéa, the Songloulou dam now falls under Socadel’s management. In contrast, Prometal will draw power from EDC-operated facilities, including the Lom Pangar dam and its 30 MW foot plant, as well as the Memve’élé dam, which boasts a peak output of 211 MW.

Energy demand surges as Prometal expands operations

This direct supply arrangement aligns with Prometal’s rapid industrial growth. With five operational units in the Douala-Bassa industrial zone—Prometal 1, 2, 3, Profab, and Progaz—the company’s electricity consumption has skyrocketed from 26 MW in 2024 to 40 MW in 2025. Projections indicate a further rise to 60 MW in 2026 and 90 MW in 2027, driven by the upcoming launch of Proalu, a sixth facility dedicated to aluminum sheet and electrical cable production.

For a heavyweight industrial player like Prometal, securing a stable power supply and controlling electricity costs are critical to maintaining competitiveness. The traditional grid, plagued by structural inefficiencies in production, transmission, and distribution, could no longer accommodate this escalating demand without disrupting manufacturing operations. The direct supply model from EDC ensures a pricing structure tied to water rights, bypassing the vulnerabilities of downstream grid segments.

EDC leverages deal to unlock new infrastructure funding

While EDC emphasizes the public interest behind this arrangement, the financial incentives are clear. The corporation generates revenue primarily through water rights fees, reinvesting proceeds into new projects. However, Socadel’s historical payment delays have strained this model. Prometal’s entry as a creditworthy counterparty injects much-needed liquidity into EDC’s coffers. Insiders highlight several pending projects awaiting funding, including the Mbakaou power plant (now scaled to 400 MW), the Memve’élé 2 expansion, and a 50 MW solar plant proposed for the Memve’élé site.

Prometal’s financial footprint in Cameroon’s energy sector is substantial. Between 2016 and 2025, the company paid a total of 42 billion FCFA to Eneo (now Socadel) and the Société nationale de transport d’électricité (Sonatrel), averaging 4.2 billion FCFA annually. Redirecting these payments to EDC could reshape sectoral dynamics and expedite the rationalization of state-owned assets. The shift underscores the growing role of industrial consumers in shaping Cameroon’s energy future.