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Cameroon: Reduced Costs for Industrial Investments in Renewable Energy and Drinking Water

Cameroon exempts renewable energy and drinking water production equipment from taxes to encourage investment and improve access, especially in rural areas.

Cameroon: Reduced Costs for Industrial Investments in Renewable Energy and Drinking Water
Cameroon News

Cameroon is intensifying its commitment to energy transition and improved access to drinking water by easing the financial burden of industrial investments. A circular issued by the Minister of Finance, Louis Paul Motazé, on February 12, 2026, details a specific list of equipment essential for the production of drinking water and renewable energies, including solar, wind, and biomass.

The list of eligible equipment is extensive and includes items such as photovoltaic panels, deep-cycle batteries, solar cables, pumps, inverters, hydroelectric turbines, various control and regulation instruments, as well as biogas purification systems and drilling units.

According to the circular, this equipment will benefit from a total exemption from customs duties and taxes for a period of 12 months. This incentive is intended to lower the initial costs of investments in alternative energy and drinking water production infrastructure, making these projects more attractive to investors.

The government insists that the tax benefits granted to economic operators must translate into lower prices for end consumers. The goal is to prevent customs incentives from only benefiting importers, without improving equipment accessibility for the population.

Coercive measures are also planned to ensure compliance. Operators who do not pass on the tax benefits to prices will face sanctions in accordance with the Customs Code of CEMAC (Economic and Monetary Community of Central Africa). In addition, any re-export of goods imported under this preferential regime will be subject to prior payment of the duties and taxes initially suspended.

By reducing the financial barriers to importing this equipment, Cameroon hopes to stimulate investment in energy and water production infrastructure, particularly in underserved regions. The initiative aims to encourage the deployment of alternative solutions, especially in rural areas, where access to electricity and drinking water remains a major challenge. In July 2025, the Cameroonian government had already announced a National Energy Compact aimed at accelerating access to electricity and clean cooking. This compact aims to increase the rate of access to electricity to 100% and that of clean cooking solutions to 40% by 2030. In October 2025, Cameroon declared its intention to mobilize 4,030 billion FCFA of private investment to finance its Energy Compact.

"The Head of State has asked us to be more present on social networks," the Minister of Communication recalled during a press conference, emphasizing the importance of government communication around these initiatives.

Source : www.investiraucameroun.com