The Cameroon government has published a circular setting out the list of drinking water production and renewable energy equipment that will be exempt from import duties and taxes. This temporary measure is designed to reduce the energy deficit and accelerate rural electrification in this Central African country.
The measure was contained in the Finance Act 2024, published on 19 December 2023. But it was not until 13 March 2024 that the Cameroon Ministry of Finance published the circular specifying the list of equipment that will be exempt from taxes and customs duties for a period of 24 months, starting on 1 January 2024. The exemption applies to equipment for producing drinking water and renewable energy.
Drinking water equipment includes drilling and boring tools, pumps, suppressors, distillers and other water treatment equipment. As far as renewable energy is concerned, the Cameroon government’s measure concerns turbines for small hydroelectric power stations not exceeding 1,000 kW, which could enable Cameroon to exploit the immense potential of its many rivers.
A response to the energy deficit
To encourage the development of solar energy, the Cameroonian government has also decided to temporarily zero-rate panels, charge controllers, photovoltaic cables, control units, batteries for electricity storage, and so on. According to the Ministry of Finance, this measure is “in line with government actions to absorb the energy deficit by diversifying energy sources for rural populations and industry, and to facilitate access to drinking water”.
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In recent weeks, the energy deficit has manifested itself in urban areas through load shedding, which the government has attributed to the drop in dam levels due to the drought season, thus reducing the performance of hydroelectric power stations. Faced with this situation, which recurs every year, the government began its diversification strategy with the commissioning of the Maroua and Guider 36 MWp solar photovoltaic power plants.
By exempting imports of renewable energy production equipment from taxes and customs duties, Cameroon is joining other sub-Saharan African countries, including Mali and Senegal in 2020, and Zimbabwe in 2021.
Jean Marie Takouleu
