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

Green jobs the key to a sustainable economy

The EU needs a strategy by 2011 to encourage the creation of green jobs, says a draft resolution by the Employment and Social Affairs Committee that was adopted on Wednesday. more »

Gas supply crises: better protection for householders

Householders should not have to go without gas due to a gas-supply crisis, and such crises should be better managed, thanks to EU-wide co-ordination procedures and interconnection requirements laid down in draft legislation agreed informally with the Council at the end of June and approved by the Industry Committee on Tuesday. more »

Estonia joins the euro-family

Today the Council has taken the formal decision which will pave the way for the introduction of the euro in Estonia as of 1 January 2011 and will become the 17th European Union country to share the euro currency. more »

Deposit guarantee schemes – part 2

Proposals to improve protection for bank account holders and retail investors, and set up similar schemes for insurance policies. more »

Greener, more competitive farming after 2013

How should the EU's farm policy be reshaped and how should it be funded after 2013? more »

European Parliament ushers in a new era for bankers' bonuses

MEPs on Wednesday approved some of the strictest rules in the world on bankers' bonuses. more »

The European Parliament's position on financial supervision

Long before the financial crisis the European Parliament regularly pointed out the significant failures in the EU’s supervision of ever more integrated financial markets. more »

Magnetic Europe: Big plans for tourism industry

New strategy for stimulating tourism in Europe – to realise the full potential of an industry that already plays an important role in the economy. more »

Commission gives details of who received EU funds in 2009

The European Commission has disclosed who in 2009 received EU funds in policy areas like research, education and culture, energy and transport or external aid. more »

€ 30 million EU support for the promotion of agricultural products

The European Commission has approved 19 programmes in 14 Member States (Austria, Belgium, Czech Republic, Denmark, Germany, France, Greece, Italy, Ireland, the Netherlands, Poland, Slovenia, Spain and the United Kingdom) to provide information on and to promote agricultural products in the European Union. more »