EU to invest CFA 60bn in key infrastructure projects in Cameroon ⁰

As part of the second phase of the Multiannual Indicative Program (MIP) 2025-2027, the European Union (EU) has announced it will mobilize €91 million (around CFA60 billion) to fund infrastructure projects in Cameroon. This initiative seeks to support the country’s economic and social development, strengthen key sectors, and promote regional integration within Central Africa. The announcement was made during the third session of the Economic and Technical Dialogue on the Cameroon-EU partnership, which took place on November 14, 2024, in Yaoundé.

Among the projects benefiting from this funding are two major initiatives: the construction of a bridge over the Ntem River between Cameroon and Equatorial Guinea, and the extension of Cameroon’s railway network to Chad. Other key projects include the Yaoundé bypass road, which aims to reduce traffic congestion in the capital, and the Kikot hydroelectric project, which will strengthen the national power supply.

“These strong commitments from the European Union, in the form of grants and budget support, aim to accelerate the completion of key infrastructure projects and reinforce structural reforms for better public financial management and enhanced competitiveness for Cameroon,” stated the Ministry of Economy’s communication service.

The EU is already involved in funding major projects that are transforming Cameroon’s infrastructure. One example is the Nachtigal hydroelectric dam (Central Region), which has a capacity of 420 MW. Supported by the EU, this project will provide nearly 30% of the electricity to the southern interconnected grid of Cameroon and play a key role in stimulating the country’s industrial growth. Another important project is the construction of the bridge over the Logone River, which will connect the Cameroonian city of Yagoua to the Chadian city of Bongor. Once completed, this bridge will provide a third official crossing point between the two countries, strengthening trade relations and contributing to sub-regional integration.

In addition to infrastructure projects, a significant portion of the discussions during this session of the Economic and Technical Dialogue focused on improving the business climate in Cameroon. The EU and the Cameroonian government are working to make the country more attractive to private investors by facilitating access to funding that supports entrepreneurship and stimulates economic activity. The EU plans to implement financial mechanisms through the Neighbourhood, Development and International Cooperation Instrument (NDICI-Global Europe) and the Global Gateway program. These initiatives will particularly target small and medium-sized enterprises (SMEs), especially in the infrastructure and energy sectors. Minister Alamine Ousmane Mey emphasized that the growth of the private sector is crucial for job creation and wealth generation. “A vibrant and productive private sector means more jobs, more wealth, and a better quality of life for the people. This is a priority for us, and through our cooperation with the European Union, we believe we will receive more support,” he said.

The announced funding is part of the MIP 2021-2027, which was officially launched in February 2022 in Yaoundé. The MIP is designed to structure and strengthen the EU’s response to the multiple challenges Cameroon faces, particularly in governance, democratic consolidation, peace, and stabilization. The program focuses on inclusive growth, with particular attention to the private sector, the creation of decent jobs, and environmental sustainability. The program spans seven years, with a solid commitment for the 2021-2024 period. The EU has allocated an additional CFA88 billion for the 2025-2027 period, with new priorities, including digitalization, which has been added as the fourth priority area of the program.

Source: Business in Cameroon