As a major boost to Central Africa’s industrial sector, Prometal SA, a subsidiary of Prometal Groupe, has secured a €40 million (CFA26.2 billion) revolving working-capital facility from the African Export-Import Bank – Afreximbank.
The agreement was officially signed in Cairo, Egypt, on September 28, 2026, by Afreximbank Vice President Denys Denya and Prometal Groupe CEO Hayssam El Jammal. This strategic financing is designed to fund the steelmaker’s operating cycle and ensure a steady influx of essential raw materials amid severe supply constraints.
The credit facility comes at a critical juncture for Cameroon’s steel processing industry, which currently lacks a local iron ore supply to feed its mills. According to sources at Afreximbank, the funds will primarily finance imports of key intermediate inputs, such as steel billets, which are essential for producing reinforcing bars and structural steel components.
Prometal CEO Hayssam El Jammal praised the strategic partnership as a major milestone, emphasizing that the long-term collaboration will help transform Africa’s broader industrial ambitions into reality.
Raw material acquisition remains a significant bottleneck for domestic steelmakers due to a sharp gap between local supply and industrial demand. Data from the Cameroon Organization of Steel and Metal Processing Industries – Ocitram reveals that locally collected scrap metal accounts for only about 40% of the industry’s needs. As processing capacity has expanded, manufacturers have increasingly relied on international markets for semi-finished products. This new liquidity pool ensures Prometal can maintain uninterrupted operational flow despite local scrap shortages.
From an institutional perspective, the transaction directly supports Afreximbank’s broader agenda to foster intra-African industrialization. Afreximbank President George Elombi noted that empowering established manufacturers like Prometal accelerates the growth of regional value chains and enhances overall manufacturing output.
By guaranteeing continuous raw material imports, the funding assists in shielding the regional steel leader from severe market disruptions and supply chain shocks.
However, raw material sourcing is only one side of a broader structural challenge facing Cameroon’s steel sector. Ocitram reports that the country’s installed processing capacity has reached approximately 1.2 million tons annually, far outpacing the domestic market demand estimated at 450,000 tons. This oversupply coupled with energy constraints and input shortages has prompted domestic mills to operate at roughly 50% capacity, leaving an estimated CFA30 billion worth of finished inventory sitting idle in warehouses as of September 2026.
This revolving facility provides Prometal with the vital financial cushioning needed to navigate a complex operating environment. While the immediate funding solves critical supply-side hurdles for the company, the broader Cameroonian steel industry must still reconcile its massive production capacity with domestic market saturation.
As new manufacturing ventures enter the region, this financial backing ensures Prometal maintains its competitive edge and market leadership across Central Africa.
