Cameroon is making a significant push for green energy by waiving over CFA9 billion (approximately USD 15.5 million) in customs duties and taxes for renewable energy projects. This strategic move, effective from November 2024 through 2025, aims to incentivize the import of essential materials and equipment, accelerating the nation’s transition to sustainable electricity generation.
Supporting Cameroon renewable energy
This pivotal tax exemption is formalized under Order No. 0221/MINFI, approved by the Ministry of Finance on September 13, 2024. The policy is broad, covering imports for energy generation from diverse renewable sources, including solar, wind, biomass, geothermal, and hydropower. It also extends to materials for crucial energy storage solutions, hybrid solar power generation, and the infrastructure needed for the production, transportation, and distribution of clean electricity.
The Ministry of Finance has detailed the financial scope of this initiative, projecting a forgone tax revenue of approximately CFA 3.7 billion in 2024 and CFA 5.3 billion in 2025. This two-year exemption, established under Article 5 of the 2024 finance law, is part of a wider government strategy to combat electricity and water shortages through indirect state support. The order covers around thirty products, including those for solar installations and drinking-water systems. To ensure the policy’s integrity, the ministry has emphasized that these exemptions must be applied with caution to prevent misuse and guarantee they directly contribute to the intended development of the renewable energy sector. This is one of several tax incentives for solar manufacturing in Cameroon designed to foster a green economy.
Expanding Cameroon renewable energy Access
Renewable energy is critical for expanding electricity access in Cameroon, particularly in rural areas where the electrification rate stands at a mere 24%. The nation possesses vast, largely untapped renewable potential, with estimates including 23,000 MW from hydropower, up to 8,000 MW from solar, 1,000 MW from biomass, and 13,000 MW from wind.
The government’s commitment is backed by concrete actions. A dedicated agency has been established to champion rural electrification, and numerous programs are in place to support renewable projects. Reinforcing this commitment, on December 3, 2025, President Paul Biya authorized a CFA36.4 billion loan from Afreximbank to finance a solar photovoltaic project targeting 200 localities. This initiative is part of a larger trend, as seen with recent Cameroon energy news highlighting the connection of 28.6 MW of new solar projects in the north. Ambitious plans to build two 30 MW solar power plants by 2025 and the ongoing Cameroon solar plant expansion further signal the country’s dedication to a sustainable energy future.
Renewable Energy Tax Exemption: Eligibility and Process
The tax exemption is accessible to both individuals and legal entities actively involved in generating electricity from renewable sources. This includes companies, public entities, and organizations engaged in producing clean energy or manufacturing the related equipment. To qualify for the exemption, applicants must satisfy the following criteria:
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Proof of Renewable Energy Activity: Applicants must provide official documentation demonstrating their involvement in renewable energy production or equipment manufacturing. This is vital for the growing Cameroon solar panel manufacturing sector, which relies on a complex manufacturing process involving specific raw materials and advanced manufacturing machines.
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Investment Plan: A comprehensive investment plan is required, detailing the project’s scope, anticipated outcomes, and financial contributions. This helps the government assess the project’s viability and its potential impact on the national energy grid. Understanding the plant cost breakdown is essential for creating a successful plan.
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Compliance with Regulations: All projects must adhere to Cameroon’s national environmental, safety, and technical standards. This ensures that new developments are not only effective but also safe and sustainable.
Prospective beneficiaries must submit their exemption requests directly to the Ministry of Finance, including all required documentation. This typically involves a detailed list of the materials to be imported, the investment plan, and any other information specified by the Ministry.
Each application undergoes a thorough evaluation to verify eligibility and compliance. Once approved, the Ministry grants the tax exemption, empowering the applicant to import the necessary materials and equipment to bring their renewable energy project to life. For those new to the industry, understanding the basics of manufacturing can be a valuable first step.
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