(Business in Cameroon) - In Cameroon, the electricity regulatory authority Arsel informs that from 2002 to Q1-2020, it received 71 electricity exploitation and distribution applications of which only 16 were successful. This is barley one successful application per year over the past 18 years.
According to the authority, this low success rate can be explained by several factors: the immaturity of projects, promoters not understanding the process and the complexity of procedures involved in obtaining administrative authorizations.
To solve these problems and increase the number of operators, Arsel indicates that it plans to, in 2020, strengthen the necessary regulatory tools by elaborating a clear procedural guide, standard tender documents and later on, draw a regulatory model.
Also, the authority plans to set up a framework for permanent consultation with the competent administrations and institutions, to support promoters in all the administrative steps necessary for the obtention of the authorizations, reduce delays and increase the number of operators.
According to legal provisions, to transport, distribute, sell, import or export electricity in Cameroon, companies have to obtain concession agreements, licenses, and authorizations from the Electricity Administration. Arsel is also competent for other cases like rural electrification or the construction of hydroelectric power stations with a capacity of less than 5 MW.