Faced with recurring power cuts that affect its economy and the daily lives of its citizens, Cameroon is banking on solar energy as an alternative solution. The government has taken a significant step by completely removing customs duties and VAT on a wide range of equipment related to renewable energies, for a period of two years.
This decision, formalized by an order, concerns nearly 220 equipment references, including photovoltaic modules, solar panels, inverters and storage batteries. The main objective is to reduce the acquisition costs of this equipment and make it more accessible to the population and businesses.
Cameroon has significant hydroelectric potential, but its production fleet is aging and investments in transport and distribution infrastructure have been deferred. This situation has led to structural load shedding, prompting many households and businesses to use generators, which are expensive and polluting.
By removing import taxes, the government hopes for a significant drop in the cost price of solar installations, potentially by 20 to 30%. This incentive measure could transform the solar value chain, stimulating demand for solar kits, particularly in rural areas underserved by the national electricity grid.
The Cameroonian administration has associated customs and the Ministry of Energy to establish a precise nomenclature of the equipment concerned and avoid misappropriation. A posteriori control is planned to ensure that the exemptions really benefit the solar sector.
In the short term, this exemption should lead to an increase in demand for solar kits and a reduction in household spending on fuel for generators. In the long term, it could structure the solar market, provided that the government puts in place quality guarantees for imported equipment and streamlines import procedures.
The major challenge remains the fiscal and industrial sustainability of this policy. The Cameroonian government is counting on private investment in solar, but its success will depend on the ability of public services to control the quality of equipment and facilitate imports. The government aims to increase the share of renewable energies in the electricity mix to 25% by 2035. It remains to be seen whether training and maintenance infrastructures will keep pace with this energy transition.
In parallel with these tax measures, Cameroon has embarked on an ambitious plan, the National Energy Compact (CEN), aimed at sustainably transforming the electricity sector by 2030, with a targeted private investment of $6.5 billion. A new electricity law is expected by 2026, clarifying the rules of public-private partnerships and offering better visibility to investors.
The ultimate objective is to achieve an electricity access rate of 100% by 2035, compared to 74% in 2025, and to increase the share of renewable energies to 10% of the energy mix by 2030.
