• Cameroon to exempt biofuel equipment from customs duties by 2026
• Incentives aim to cut firewood use, boost green energy production
• Biogas, pellets, eco-charcoal sectors targeted for industrial growth

The Cameroonian government plans to launch an investment incentive program for the biofuels sector starting in 2026. To achieve this, the government will introduce customs exemptions on industrial production equipment used to make biofuels such as eco-charcoal, pellets, and biogas, according to the National Energy Compact. This compact is described as both a “commitment by the State of Cameroon” and a “roadmap for developing sustainable energy infrastructure” through 2030.

Through these customs incentives, Cameroon aims to boost the production of energy sources that remain underused in the country. The main goal is environmental protection, achieved by reducing households’ dependence on firewood and traditional charcoal.

According to the United Nations Development Programme (UNDP), wood and charcoal account for 82.3% and 30.6% of household energy consumption in Cameroon, respectively. In the Far North region, which is already facing severe drought, the use of firewood for cooking energy reaches 95%, the UN agency reports.

By introducing a customs policy that exempts imports of industrial production equipment from taxes, Cameroon expects to stimulate investment in alternative energy solutions, including biogas, which produces energy from biodegradable waste. The country’s biogas industry is still in its early stages, led by operators such as the household waste collection and treatment company Hygiène et Salubrité du Cameroun (Hysacam). Since 2013, Hysacam has developed biogas capture stations at its landfills in Douala and Yaoundé.

Biofuels Market Still Wide Open for Investment

The customs incentives announced by the government could enable companies like Hysacam to further diversify their activities by moving into large-scale biogas production. Startups operating in this space, often seeking funding, should also be able to take advantage of this opportunity provided by the state to develop and secure a lasting position in a market that remains wide open.

Producers of pellets, or wood pellets, are also expected to benefit from the 2026 incentives to expand their operations and promote a product less known than biogas. Pellets are small, cylindrical, 100% natural solid fuels made from compressed sawdust and wood chips. Compagnie Générale des Granulés SA, located in Akom I, about 30 kilometers from Kribi, is one of the few pellet producers in Cameroon. By using wood waste from the forestry industry, the company says it has a production capacity of 500,000 tonnes per year for both industrial and residential use.

Meanwhile, the production of eco-charcoal remains limited in Cameroon. Due to a lack of investment in industrial-scale production, the activity is mainly driven by startups such as Kemit Ecology, which artisanally transforms vegetable waste collected from markets and households in the economic capital, Douala.

"Green charcoal is coal produced from carbon-rich biodegradable residues, mainly from agricultural residues and household waste. It comes in the form of briquettes or balls the size of traditional charcoal pieces and could be used in most traditional ovens used in the South. Green charcoal can be used as a substitute for coal, firewood for domestic cooking and even heat production in industries," the UNDP explains. 

In 2023, the UN agency supplied a production unit for this biofuel to a women’s association in Maroua, in the northern part of Cameroon.

Brice R. Mbodiam, Business in Cameroon