Cameroon Employers’ Economic Rentrée Held Under Shadow of Power Cuts

Cameroon's economic reunion held in Douala on September 10, 2026, was overshadowed by the persistent issue of power cuts. The Confederation of Employers of Cameroon (GECAM) warned that these blackouts and rationing are severely impacting industry, despite new generation capacity being introduced. GECAM President Celestin Tawamba highlighted unreliable electricity as a major obstacle to the country's industrial competitiveness during the meeting held at the federation's headquarters in Bonanjo, Douala.

The economic reunion turned into an alarm over what Tawamba described as a persistent energy crisis and a decline in public investment. According to GECAM, 65 percent of member companies are forced to rely on diesel generators, which are significantly more expensive than grid supply and directly affect profit margins. Industrial rationing in some regions can last up to 10 hours a day, with several industrial plants suspending production temporarily.

The power sector is in dire financial straits, with ENEO Cameroon, the utility responsible, recording average monthly revenues of CFA31 billion (around US$55 million) but operating costs of CFA44 billion (about US$78 million), leading to a monthly shortfall of CFA13 billion (approximately US$23 million). The government plans to refinance ENEO's liabilities through a local banking syndicate, with monthly gains of CFA2.5 billion (around US$4.4 million) projected.

However, the utility's accumulated debt stands at CFA177 billion (about US$313 million), and the state cannot easily fund maintenance, fuel purchases, or grid upgrades, further perpetuating the cycle of power cuts. The financial strain on the power sector is exacerbated by a hydrological deficit, estimated at three billion cubic meters due to low rainfall and congested transmission corridors like the Edea-Douala axis.

Industrial users in Douala and the Littoral region bear the brunt of the power cuts, as production lines halt, cold chains are disrupted, and port-linked logistics face delays that ripple through the entire supply chain in Central Africa. Smaller businesses without backup generation are particularly hard hit, as diesel is costly to burn.

Larger firms with captive power sources can better endure interruptions, but even they face energy costs that erode their competitiveness. The state faces a dilemma: it must maintain affordable tariffs while addressing the widening utility deficit. In January, Tawamba stated that 80 percent of member companies identified the electricity deficit as their primary operational challenge, a warning that has not diminished by September.

The employers left the January session with a joint monitoring platform between GECAM and the Ministry of Water and Energy (MINEE), promising transparent dialogue. The Ministry has outlined plans for debt renegotiation with local banks, settling unpaid electricity bills of public entities, and implementing cost cuts. These efforts aim to generate CFA9.853 billion (about US$17 million) in additional monthly revenue and reduce charges by CFA3.853 billion (approximately US$7 million) by 2027.

However, the success of these measures hinges on the timely refinance of ENEO's liabilities and the actual commencement of industrial connections scheduled for the fourth quarter of 2026. The outcome will determine whether Cameroon can finally break the cycle of power outages and improve its industrial competitiveness.