The Cameroonian government has granted Prometal the green light to secure 90 megawatts of electricity directly from the Electricity Development Corporation (EDC), the state-owned electricity asset manager. Finalizing the agreements will follow a series of consultations scheduled from June 8 to 12, 2026, in the offices of the Prime Minister in Yaoundé. A June 1 directive from Secretary-General Séraphin Magloire Fouda to the Minister of Water and Energy, Gaston Eloundou Essomba, outlines the roadmap for this initiative.
Prometal joins elite group of Cameroon’s direct hydropower consumers
Negotiations will center on the special pricing framework granted to Prometal since February 2025 and the finalization of contractual documents. Two agreements will underpin this arrangement: a supply contract between EDC and the steel producer, and a compensation agreement between EDC and Socadel, the recently restructured successor to Eneo. Upon signing, Prometal will become the second industrial entity in Cameroon to draw power straight from hydropower dams, following the Cameroon Aluminium Company (Alucam).
The precedent set by Alucam looms large in this setup. Long recognized as Cameroon’s largest electricity consumer—accounting for up to 40% of national output at its peak—the aluminum giant is directly connected to the Edéa dam. This facility, like the Songloulou dam, now falls under Socadel’s management. Prometal, in contrast, will rely on EDC-operated infrastructure: the Lom Pangar dam with its 30 MW foot plant, and the Memve’élé dam, which delivers peak output of 211 MW.
Energy demand triples in just three years
The shift to direct power supply aligns with Prometal’s industrial growth trajectory. With five operational units in the Douala-Bassa industrial zone—Prometal 1, 2, and 3, Profab, and Progaz—the company’s energy needs surged from 26 MW in 2024 to 40 MW in 2025. Projections indicate a rise to 60 MW in 2026 and 90 MW in 2027, driven by the launch of Proalu, a sixth facility dedicated to aluminum sheet and electrical cable production.
For a company of this scale, securing reliable power at competitive rates is essential for maintaining competitiveness. The traditional grid, plagued by chronic inefficiencies across generation, transmission, and distribution, could no longer accommodate this surge without jeopardizing production lines. Direct supply from EDC introduces a pricing model tied to water rights, bypassing downstream network bottlenecks.
EDC anticipates fresh revenue streams to fund expansion
At EDC, the official rationale conceals a strategic financial incentive. The corporation’s revenue model hinges on water rights fees and reinvestment into new infrastructure. Yet persistent payment delays from Socadel, its long-standing counterpart, have strained this model. Prometal’s entry as a creditworthy client bolsters EDC’s cash flow outlook. Insiders highlight pending projects awaiting financing, including the 400 MW Mbakaou 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 electricity sector is substantial. Between 2016 and 2025, the company paid 42 billion FCFA to Eneo (now Socadel) and the National Electricity Transport Company (Sonatrel), averaging 4.2 billion FCFA annually. Redirecting these funds to EDC could reshape industry dynamics and accelerate consolidation within the state-run segment.
