Cameroun: Prometal secures direct power supply from dams
The Cameroonian government has granted Prometal the green light to secure 90 megawatts of power capacity directly from the Electricity Development Corporation (EDC), the state-owned electricity asset management company. Finalizing the agreements will follow a series of consultations scheduled from June 8 to 12, 2026, within 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 direct hydropower users
The upcoming negotiations will focus on the tailored pricing model granted to Prometal since February 2025 and the finalization of contractual documents. Two key agreements will govern the arrangement: a supply contract between EDC and the steel manufacturer, and a compensation agreement between EDC and the recently restructured Société camerounaise d’électricité (Socadel). Once signed, Prometal will become Cameroon’s second company to draw electricity directly from dams, following the footsteps of the Cameroonian Aluminium Company (Alucam).
The Alucam precedent looms large over this initiative. Long recognized as Cameroon’s largest electricity consumer, Alucam once accounted for up to 40% of national output, drawing power directly from the Edéa dam. While Edéa and Songloulou dams now fall under Socadel’s management, Prometal will be supplied from EDC-operated facilities, including the Lom Pangar dam and its 30 MW downstream plant, as well as Memve’élé, whose peak output reaches 211 MW.
Energy demand surges as industrial growth accelerates
This shift to direct power procurement aligns with Prometal’s rapid industrial expansion. With five operational units in the Douala-Bassa industrial zone—Prometal 1, 2, 3, Profab, and Progaz—the company’s electricity needs have 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 with the launch of Proalu, a sixth facility dedicated to aluminum sheet and electrical cable production.
For a heavyweight industrial player like Prometal, securing a stable, cost-effective power supply is non-negotiable. The traditional grid, plagued by chronic inefficiencies in production, transmission, and distribution, could no longer support this growth without threatening manufacturing continuity. Direct procurement from EDC bypasses intermediate segments, tying power pricing to water rights and ensuring greater predictability.
EDC bets on Prometal to unlock new projects
Behind the official stance, EDC’s financial incentives are clear. The company’s revenue model hinges on water rights fees and reinvestment in new infrastructure. However, Socadel’s payment delays have strained this cycle. Prometal’s entry as a reliable counterparty injects much-needed liquidity into EDC’s coffers. Insiders reveal several stalled projects poised for revival, including the 400 MW Mbakaou hydropower plant, the Memve’élé 2 expansion, and a planned 50 MW solar facility at the Memve’élé site.
Prometal’s financial footprint in Cameroon’s power sector is substantial. Between 2016 and 2025, the group paid 42 billion FCFA to Eneo (now Socadel) and the national grid operator (Sonatrel), averaging 4.2 billion FCFA annually. Redirecting these funds to EDC could reshape sector dynamics, accelerating consolidation within the state-owned segment.
