Cameroon Firms Look to Hydro to Help Close the Power Gap

Published: 12 January 2010 y., Tuesday

Elektros lemputės
Basile Nkwesi, Directeur Commercial of Multiprint, speaks for dozens of frustrated business managers in this busy enterprise center when he talks about Cameroon’s costly and unreliable electricity.

Power outages interrupt the printing process, impair equipment, and cause delays and cost overruns for customers.

“It’s an enormous constraint,” he says. “We lose clients to Asian competitors, because despite the distance, they’re more competitive.”

Like virtually all companies in the country, Multiprint backstops itself with a diesel-powered generator—one of the most expensive and inefficient solutions to power supply.

And when clients take their business elsewhere, it’s harder to expand, invest or recruit. In fact, Multiprint has cut its workforce to about 115 from 200 over the past two years. 

Inadequate power to support a more diverse and competitive private sector is one of the principle factors accounting for Cameroon’s sluggish economic growth, which falls far short of the seven percent annual growth the country needs to achieve the Millennium Development Goals, or to reach the government’s goal of attaining middle-income status by 2035.

Graphics System, another printing company here, operates a network of production houses,  but 15 days out of every month, there is a power outage somewhere in the system. Energy costs chew up about 10 percent of revenue, estimates Jean-Luc le Gall, Directeur General.  

When businesses in Cameroon are surveyed about constraints to doing business, 67 percent of the manufacturing firms cite limited access to and high costs of electricity as among the top five constraints they face.

“The energy problem is a problem for the whole economy,” says Justin Fotsing, chief economist of Groupement Inter-Patronal du Cameroun.  

Said ou Abdoulai Bobboy, at the Cameroon Chambre de Commerce argues that with “the huge investment in private generators” and the associated costs, investments are routinely postponed or shelved. “Projects founder or stall because of the fear of inadequate electricity,” he says.

To address the power gap, the government has called for the development of its hydropower potential, among the largest in Sub Saharan Africa.  The anchor project in this strategy is the Lom Pangar Hydropower Project, a regulating dam on the Sanaga River that could support additional hydropower generation of as much as 6000 MW.

Private sector leaders say they applaud the project. Their main worry is that it won’t come on soon enough to provide near-term relief from high production costs. 

Šaltinis: www.worldbank.org
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Paris fashion week ignores economic pinch

European cities may still be feeling the pinch of the global recession. more »

EBRD supports private ownership in Kazakhstan’s oil and gas sector

The EBRD Board of Directors has approved a $50 million convertible loan to Petrolinvest to finance the completion of exploration works at the company’s main oilfields. more »

Car safety: European Commission welcomes international agreement on electric and hybrid cars

The European Commission welcomes the adoption today at the United Nations in Geneva of the first international regulation on safety of both fully electric and hybrid cars. more »

Lithuania’s rating outlook raised by fitch on budget

Bloomberg has today announced that Lithuania had the outlook on its credit rating raised by Fitch Ratings after the Government implemented an austerity program to curb the budget deficit. more »

Eurostat: Lithuania shows highest increase in retail trade

In January 2010, compared with December 2009, the highest increase in retail trade in the EU-27 Member States was observed in Lithuania. more »

Globalisation fund: Parliament backs aid to Germany and Lithuania

Three thousand former car, refrigerator and construction workers in Germany and Lithuania will get €7.6 million in EU globalisation adjustment fund aid for training, self-employment and job guidance after Parliament gave the green light on Tuesday. more »

Tourism: upbeat prospects for 2010 season

Some 80% of Europeans continue to travel for their holidays according to a new Eurobarometer survey on ‘The attitudes of Europeans towards tourism 2010’. more »

Consumer protection under discussion by MEPS

The EU's internal market will be under scrutiny Tuesday when a series of reports will be debated by MEPs in Strasbourg. more »

EU to provide 45,000 micro-loans to unemployed and small entrepreneurs

EU Employment and Social Affairs Ministers today agreed on a new facility to provide loans to people who have lost their jobs and want to start or further develop their own small business. more »

MEPs set to vote on help for German & Lithuanian workers

Over €7.6 million in financial aid for training and self-employment could be available to former workers in German and Lithuanian if MEPs back the measures Tuesday. more »