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 entity managing the country’s hydropower assets. Final contract negotiations are scheduled to take place from June 8 to 12, 2026, in the offices of the Prime Minister in Yaoundé, following 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.

Cameroon’s second direct industrial power connection

The upcoming talks will focus on finalizing Prometal’s bespoke tariff agreement, in effect since February 2025, and drafting the definitive contractual framework. Two agreements will be central to the arrangement: a supply contract between EDC and the steel manufacturer, and a compensation contract between EDC and the newly restructured Société camerounaise d’électricité (Socadel), formerly a division of Eneo. Upon signing, Prometal will join the Compagnie camerounaise de l’Aluminium (Alucam) as Cameroon’s second industrial entity drawing power straight from the source—specifically, the Lom Pangar dam with its 30 MW foot unit and the Memve’élé complex, which delivers up to 211 MW at peak output.

The Alucam precedent carries significant weight. The aluminium giant, long regarded as Cameroon’s largest electricity consumer—covering up to 40 % of national output—is directly linked to the Edéa dam, an asset now under Socadel’s management alongside Songloulou. Prometal’s new arrangement bypasses the traditional grid, tapping into EDC’s hydropower infrastructure to secure reliable, cost-competitive energy.

Steel giant’s energy needs triple in three years

Prometal’s expansion mirrors its soaring electricity demand. With five operational facilities in the Douala-Bassa industrial zone—Prometal 1, 2, 3, Profab, and Progaz—the group’s consumption has surged 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 plant dedicated to aluminium sheet and electrical cable production.

For a manufacturer of this scale, guaranteed supply and stable energy costs are non-negotiable for maintaining competitiveness. The existing grid, plagued by persistent inefficiencies in generation, transmission, and distribution, could no longer accommodate such growth without disrupting production lines. Direct procurement from EDC ensures a pricing model tied to water rights, eliminating unnecessary intermediaries and stabilizing costs.

EDC leverages deal to fund new hydropower projects

While EDC highlights the public-service dimension of the arrangement, the financial upside is unmistakable. The corporation’s revenue model hinges on water-rights fees, reinvested into expanding capacity. However, persistent payment delays from Socadel—its traditional anchor client—have strained cash flow. Prometal’s entry as a creditworthy counterparty injects much-needed liquidity, enabling EDC to advance stalled initiatives such as the 400 MW Mbakaou plant, the Memve’élé 2 expansion, and a proposed 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 remitted 42 billion FCFA to Socadel and the national transmission utility (Sonatrel), averaging 4.2 billion FCFA annually. Redirecting these payments to EDC could rebalance sector dynamics and accelerate consolidation of the state-owned portfolio, reinforcing grid efficiency and long-term sustainability.