A Guide on the Legal Framework for Investing in the Energy Sector in Cameroon

January 3, 2024

Investing in the energy business is a lucrative opportunity to contribute to Cameroon's ever-growing economy's development and sustainability.

However, before embarking on such ventures, it is critical to have a thorough understanding of the regulatory structure controlling investments in Cameroon's energy sector.

This piece attempts to shed light on the major regulations and accessible prospects, providing significant insights for both domestic and foreign investors.

1. Overview of Cameroon's Energy Sector

Cameroon is blessed with abundant natural resources, making it an attractive destination for energy investments. Its diverse energy mix includes hydro, thermal, gas, and renewable sources, promoting a balanced and sustainable energy supply.

2. Legal Framework and Regulatory Bodies

The legal framework for investing in the energy sector in Cameroon revolves around several key legislations and regulatory bodies. These include:

a) Law No. 2011/022: This law aims to promote the production, transportation, and distribution of electricity, fostering private investments and
ensuring open access to the grid.

b) Institutional Framework: The Ministry of Water and Energy (MINEE) oversees the energy sector while the Electricity Sector Regulatory Agency
(ARSEL) focuses on regulating the electricity market, ensuring fair competition, and protecting consumer interests.

c) Licensing and Permits: Before commencing any energy-related project, obtaining the necessary licenses and permits from ARSEL and MINEE is
mandatory. These regulatory bodies assess the feasibility, technical capabilities, and environmental impact of proposed investments.

3. Investment Incentives and Opportunities

The Cameroonian government provides various incentives to attract local and foreign investors in the energy sector:

a) Tax Advantages: Investors benefit from tax exemptions on imported equipment, machinery, and raw materials used in energy projects.
Additionally, corporate income tax reductions and accelerated depreciation schemes are available for qualifying investments.

b) Renewable Energy Opportunities: Renewable energy sources like solar, wind, and biomass hold significant potential in Cameroon. The government
is actively encouraging investments in these sectors through attractive feed-in tariffs, land provision, and simplified administrative procedures.

c) Public-Private Partnership (PPP) Projects: Cameroon actively seeks private sector collaborations in the energy sector through PPPs, creating
opportunities for investors to participate insignificant projects like the construction of hydroelectric dams, power plants, and transmission lines.

4. Investor Protection and Dispute Resolution

The legal framework also prioritizes investor protection and provides mechanisms to resolve disputes:

a) Investment Guarantee: Cameroon is a member of several international agreements and conventions that protect foreign investments, including the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).

b) Dispute Resolution: In the event of disputes, investors can engage in a neutral and internationally recognized arbitration process, ensuring fair and impartial resolution.

5. Conclusion


Navigating the legal environment for investing in Cameroon's energy sector is critical for making informed decisions and mitigating potential risks.
Cameroon, with its highly developed and well-regulated energy sector, provides several prospects for both domestic and foreign companies.
Investors can access into the country's abundant energy resources while contributing to its long-term growth and development by understanding the legal requirements, incentives, and opportunities.


6. The Role of Neneng Law Office.


Looking for a reputable law firm in Cameroon to carryout a thorough legal due diligence on your behalf? The Neneng Law Office is the place to go.
We are committed to providing high-quality due diligence legal services to our clients based on our years of experience and expertise.
Whether you need assistance with contracting, regulatory compliance, due diligence, legal advisory, investigation, or any other legal issue, our team of qualified lawyers in Cameroon are ready to assist you.
Client satisfaction is Neneng Law Office's primary priority, with personalized attention and appropriate solutions for each case.
You may count on our professionalism and extensive knowledge of the Energy sector and its legal framework in Cameroon. For any of your legal needs, contact Neneng Law Office now.



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