Cameroon’s government has approved a landmark deal that allows Prometal, the country’s leading steel manufacturer, to secure 90 megawatts of hydroelectric power directly from dams operated by the Electricity Development Corporation (EDC). Finalizing these agreements will follow intensive negotiations 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 the Minister of Water and Energy, Gaston Eloundou Essomba, outlines the roadmap for implementation.
Cameroon’s second major industrial player tapping into direct hydroelectric supply
During these discussions, negotiators will finalize the special pricing terms granted to Prometal since February 2025 and draft the definitive contract documents. The arrangement hinges on two key agreements: a supply contract between EDC and the steel producer, and a compensation contract between EDC and Société camerounaise d’électricité (Socadel), which emerged from the restructuring of Eneo. Once signed, Prometal will join Alucam as the second major industrial entity in Cameroon drawing power straight from the source.
The precedent set by Alucam plays a pivotal role in this transition. Long recognized as Cameroon’s largest electricity consumer—at times accounting for up to 40% of national output—the aluminum giant is directly connected to the Edéa dam. Like the Songloulou facility, Edéa is now part of Socadel’s portfolio. In contrast, Prometal will draw power from EDC-managed dams, including Lom Pangar, which has a 30 MW base plant, and Memve’élé, whose peak output reaches 211 MW.
Steel producer’s energy demand triples in three years
This direct supply arrangement aligns with Prometal’s aggressive expansion. With five operational plants in the Douala-Bassa industrial zone—Prometal 1, 2, 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 by 2027, driven by the upcoming launch of Proalu, a sixth facility dedicated to aluminum sheet and electrical cable production.
For an industrial powerhouse of this scale, securing a stable power supply and controlling electricity costs are critical to maintaining competitiveness. The traditional grid, plagued by structural inefficiencies in generation, transmission, and distribution, could no longer support this growth without risking production disruptions. Direct supply from EDC enables a pricing model tied to water rights, bypassing the downstream segments of the system.
EDC leverages deal to fund new infrastructure projects
From EDC’s perspective, the financial upside of this arrangement cannot be overstated. The company’s revenue model depends on billing water rights fees and reinvesting proceeds into new projects. However, payment delays from Socadel, its longstanding client, have strained this financial cycle. Prometal’s entry as a creditworthy counterparty provides much-needed liquidity. Insiders point to several pending projects awaiting funding, including the expanded Mbakaou hydroelectric plant (now 400 MW), the Memve’élé 2 expansion, and a proposed 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 in bills to Eneo (now Socadel) and the Société nationale de transport d’électricité (Sonatrel). This averages 4.2 billion FCFA annually injected into the power sector. Redirecting these payments to EDC could reshape industry dynamics and accelerate the rationalization of state-owned assets.