(Business in Cameroon) - The Cameroon Electricity Development Corporation (EDC) recently published its result for FY2021.
According to the document, the net profit after tax for the period was CFA572.7 million, CFA1.13 billion (-75%) down compared to 2019, when this indicator was CFA1.7 billion. This drastic decline, EDC says, is due to financial difficulties and the fallouts of the Covid-19 pandemic.
The company led by Theodore Nsangou (pictured) did not provide figures illustrating this precarious financial situation but the Technical Commission for the Rehabilitation (CTR) of Public and Para-public Sector Enterprises in Cameroon published a report in 2020 revealing that EDC already had a negative cash flow of CFA220,065,309 in 2019. CTR attributed this situation to the increase in tax (+56.7%), social (+20.13%), and supplier debts (+24%) as well as financial debts.
The Commission noted a 21% increase in personnel expenses although the EDC staff was trimmed from 326 to 311 as of December 31, 2019. This is because the company had to make back pay and other payments to its employees, those who resigned or were laid off, as well as to those who were on maternity leave.
To relieve the company and help it get out of this crisis, CTR suggests that "it develops new activities provided for in Decree No. 2020/244 of May 4, 2020, to generate other resources and strengthen its cash flow."