The Credit Agreement was signed on 7 March 2023 in Yaounde by the Minister of the Economy, Planning and Regional Development, Alamine Ousmane Mey, and the Deputy Executive President of the African Export-Import Bank (AFREXIMBANK), Dr. George Elombi. It was in the presence of the Minister of Water Resources and Energy, Gaston Eloundou Essomba.
This is the first sovereign lending operation of the African Export-Import Bank in Cameroon. The Loan Agreement signed on Tuesday, 7 March, 2023, to the tune of 53 million euro, or approximately 34.7 billion CFA francs for the partial financing of Rural Electrification by Solar Photovoltaic System in 200 localities in Cameroon, thus highlights the historical dimension of the event, but also the entry into an era of solid and dynamic partnership with a view to more consistent support to the implementation of Cameroon’s Development Vision, under the wise leadership of the President of the Republic, H.E. Paul Biya. The Minister of the Economy adds that the relevance of the signing of this Loan Agreement also lies in the nature of the project to be funded. The project involves the construction of 200 micro power plants and their integrated distribution networks, with a total installed capacity of 15 megawatts and a potential connection for more than 30,000 households. The overall cost stands at €146.574 million, i.e. about CFAF 96 billion. The first phase of €53 million is intended for the construction of about 87 power plants, for the connection of just over 13,000 households.
According to the Executive Vice-President of the African Export-Import Bank, Dr. Georges Elombi, AFREXIMBANK is ready to support the Cameroonian Government throughout the implementation of this programme. It should be noted that the 200-community rural photovoltaic electrification project is the third phase of a more comprehensive programme to equip 1,000 communities with solar photovoltaic systems. A commitment made in September 2012 by the President of the Republic, H.E. Paul Biya. The previous two completed, approved and operational phases installed 350 micro-power plants and connected 26,000 households out of the 49,240 envisaged, for an installed capacity of 24.2 megawatts and external financing of US$251 million. The specificity of Phase 3 of the project is the increase in power plant capacity with 50 power plants from 100 to 200 kilowatts.
As a reminder, Cameroon is one of the founding members of AFREXIMBANK. She has been a signatory to the Bank’s founding agreement since 8 May, 1993 in Abidjan. Our country’s prominent position within this institution was recently consolidated with the signing, on 13 December 2019 in Yaounde, of a bilateral agreement to open a branch of AFREXIMBANK in Cameroon.
Official opening since September 2019 in Yaounde.
