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Cameroon to Sign Two Loan Agreements Worth 60 billion

Solar Energy

The President of the Republic signed two decrees empowering the Minister of Economy, Planning and Regional Development to sign two financing agreements with two international financial institutions to finance projects in the fields of digital and renewable energy.

 

Cameroon will sign a loan agreement with Unicredit Bank Austria AG. The financing requested by the country from this Austrian financial institution amounts to 6.7 million euros, or F CFA 4.46 billion. This money will be used to finance the rural electrification project using solar photovoltaic systems and public lighting in nine regions of Cameroon.

 

This project is announced in a context where Cameroon is multiplying initiatives related to the production of green energy. Indeed, between 2016 and 2020, the State has managed to electrify 350 localities, thanks to the construction of mini solar power plants, the construction of associated distribution networks and the installation of prepaid metering systems. Financed to the tune of 53 billion CFA francs by the government, whose share amounts to 7 billion CFA francs, and by China, through EximBank China, to the tune of 46 billion CFA francs, this project, which is called the “rural electrification campaign using the solar photovoltaic system“, aims to electrify 1,000 localities throughout the country.

Another decree issued by the President of the Republic on 6 December 2022, authorises Alamine Ousmane Mey to sign a credit agreement with the International Development Association (IDA), one of the three subsidiaries of the World Bank, for an amount of 84.1 million euros, equivalent to CFAF 55.165 billion. The government intends to use this money to finance the project to accelerate digital transformation in Cameroon (Patnuc).

Specifically, the Patnuc, which is led by the Ministry of Posts and Telecommunications, the Ministry of Agriculture and Rural Development, and the Ministry of Livestock, Fisheries and Animal Industries, aims to put in place new institutional, legal and regulatory frameworks conducive to the growth of the digital sector, the strengthening of digital confidence, the creation of digital platforms and the acquisition of relevant equipment for a secure and resilient development of digital services in Cameroon.



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Published on 03.01.2023

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