Cameroon’s 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 hydroelectric assets. Final agreements will be finalized following a series of consultations 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 Water and Energy Minister Gaston Eloundou Essomba, outlines the procedural roadmap.
Prometal joins elite group of direct hydroelectric consumers
The upcoming talks will focus on the special tariff 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 manufacturer, and a compensation agreement between EDC and Socadel, the recently restructured entity formerly known as Eneo. Once signed, Prometal will become only the second company in Cameroon to draw electricity directly from hydroelectric sources, following the Cameroon Aluminium Company (Alucam).
The precedent set by Alucam carries significant weight in this decision. For decades, Alucam has been Cameroon’s largest electricity consumer, at times accounting for up to 40 percent of national production. It draws power directly from the Edéa dam, one of several now under Socadel’s management, alongside the Songloulou facility. Prometal, however, will be supplied from EDC-operated dams—specifically Lom Pangar, which includes a 30 MW foot unit, and Memve’élé, whose peak output reaches 211 MW.
Steel giant’s energy needs surge amid industrial expansion
This direct supply arrangement aligns with Prometal’s rapid industrial growth. Operating five facilities in the Douala-Bassa industrial zone—Prometal 1, 2, and 3, Profab, and Progaz—the company’s energy consumption has skyrocketed from 26 MW in 2024 to 40 MW in 2025. Projections indicate a further increase to 60 MW in 2026 and 90 MW in 2027 with the launch of Proalu, a sixth plant dedicated to aluminum sheet and electrical cable production.
For a company of this scale, securing a stable, cost-effective energy supply is critical to maintaining competitiveness. The traditional grid, plagued by systemic inefficiencies in production, transmission, and distribution, could no longer reliably support such rapid demand growth without disrupting manufacturing operations. Direct procurement from EDC allows Prometal to negotiate rates tied to water rights, bypassing the inefficiencies of downstream segments.
EDC leverages deal to fund critical infrastructure projects
While EDC’s official stance emphasizes energy sector stability, the financial implications of the agreement are clear. The corporation’s revenue model relies heavily on water rights fees, with proceeds reinvested into new projects. However, payment delays from Socadel, its primary customer, have strained this system. Prometal’s participation as a creditworthy partner injects much-needed liquidity into EDC’s operations. Insiders point to several stalled initiatives now in line for funding, including the Mbakaou hydropower plant (expanded to 400 MW capacity), the Memve’élé 2 expansion, and a planned 50 MW solar facility at the Memve’élé site.
Prometal’s financial contributions to Cameroon’s power sector are substantial. Between 2016 and 2025, the company paid a total of 42 billion FCFA to Socadel (formerly Eneo) and the National Electricity Transmission Company (Sonatrel)—an average of 4.2 billion FCFA annually. Redirecting these funds to EDC could reshape power sector dynamics and accelerate the optimization of state-owned assets.
