Cameroon Secures $40M for Solar Electrification

November 28, 2024 • Estimated Reading Time: 2 minutes

Key Figures & Findings: The Government of Cameroon, led by President Paul Biya, has authorized a CFA24.8 billion ($40 million) financing agreement with the African Export-Import Bank (Afreximbank) a pan-African multilateral trade finance institution promoting intra-African trade and development, to support its solar electrification project. In collaboration with Huawei Technology, this initiative aims to electrify 1,000 rural communities, providing sustainable energy solutions and boosting access to electricity in underserved areas. This marks the second collaboration between the Cameroonian government and Afreximbank, which had earlier provided a CFA35 billion( $55 million)—loan in March 2023 for the same initiative.

Statistics & Insights: The current phase targets electrifying 200 communities, with the total project aiming to benefit 1,000 communities. With rural electrification at just 20%, the government requires CFA874 billion($1.4 billion)  to achieve universal access.

Future Implications: By December 2025, this initiative could increase Cameroon's rural electrification rate, currently at 20%, and diversify its predominantly hydroelectric energy mix. However, achieving nationwide rural electrification will require substantial financial and logistical commitment.