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

Zapatero will analyse EU economic strategy with Merkel

The President of the Spanish Government, José Luis Rodríguez Zapatero, will meet this Monday with the German Chancellor, Angela Merkel, to analyse the future EU economic and employment strategy EU2020 before the Twenty-seven approve its basic lines at the Spring European Council. more »

MEPs set out fisheries reform priorities

The planned overhaul of the EU common fisheries policy should take better account of the huge differences across European fleets and fisheries, give greater responsibility to fishing regions, address the problem of fleet overcapacity and improve the traditional quota system, according to a non-binding report adopted by Parliament on Thursday. more »

Stronger European economic governance and tougher rules for the Stability Pact needed

The EMU framework and economic governance within the eurozone need to be revamped. more »

Young people to be a priority when EP starts work on 2011 budget

Young people should be a priority in EU action next year, it emerged on Tuesday, as the Budgets Committee started work on the EU's 2011 budget. more »

“Support for regional policy is our priority”, President of the European Investment Bank tells MEPs

European Investment Bank (EIB) support for EU regional policy is crucial for tackling the economic crisis, EIB President Philippe Maystadt told the Regional Development Committee on Monday. more »

Globalisation fund: Budgets Committee backs aid to Germany and Lithuania

Three thousand former car, refrigerator and construction workers in Germany and Lithuania could get €7.6 million in EU globalisation adjustment fund aid for training, self-employment and professional orientation under plans approved by the Budgets Committee on Tuesday. more »

European ministers will focus their discussions on the impact of the crisis on Greek agriculture and the future of the Common Agricultural Policy

Today, 22 February, the EU Council of Agriculture and Fishing in Brussels, under the chairmanship of the Spanish Minister, Elena Espinosa, will analyse the impact of the economic crisis on the Greek agricultural sector, which has experienced a drop in prices and income, with small farms that pose an obstacle for the producer for negotiating with large distribution chains. more »

Around 260 cities are hoping to establish municipal policies to tackle the crisis

Municipal policies to tackle the crisis and their application at EU level will be discussed during the three days of the summit entitled, “Networked Local Governments for a New Europe”, which will bring together representatives from 260 cities in Barcelona. more »

EBRD promotes energy efficiency projects in Moldova

The EBRD is promoting energy efficiency and renewable energy projects in Moldova, helping the economy to reduce its energy intensity with a new €20 million credit line for on-lending to local private companies. more »

EBRD supports ice-cream producer in Turkmenistan

The EBRD is lending $1.2 million to Salkyn, one of the largest ice cream producers in Turkmenistan, to help the company expand its distribution network and build up its brand. more »