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Without electricity outages, Cameroon’s economy could have grown at more than double the actual rate.
Last modified: July 1, 2025, 6:42 p.m.
Electricity is essential for both economic development and social well-being. However, many developing countries, including Cameroon, face challenges of unreliable and insufficient electricity supply, leading to substantial but often unquantified damages.
In this study, we evaluated the direct economic and environmental impacts of electricity outages in Cameroon through a novel methodology that combines survey data with night-time light radiance measurements from NASA satellites. The results reveal significant losses: without electricity outages, Cameroon’s economy could have grown at more than double the actual rate. Our central estimate suggests that the average annual loss is approximately 3.32% of GDP, which is almost equivalent to the country's average growth rate over the same period. Over the past decade, Cameroon has lost an estimated 10,361 billion XAF—more than the combined budgets of 2020 and 2021.
In terms of environmental impact, nearly 3 million tons of CO₂ have been emitted by backup generators, with the total emissions roughly equivalent to one-fifth of Denmark's manufacturing sector emissions in 2024. The additional cost incurred by firms due to generators usage amounted to 169 billion XAF in 2024, potentially triggering inflationary pressures and affecting international competitiveness. These estimates do not account for indirect economic impacts or the broader social and welfare costs associated with electricity outages, which are likely to be significant. The magnitude of these impacts underscores the critical importance of prioritizing energy security in national development policies.
