LUSAKA, Zambia – Africa’s growing demand for Liquefied Petroleum Gas (LPG) presents a major investment opportunity for the continent’s energy sector, but inadequate infrastructure could undermine efforts to expand access to clean cooking.
African Refiners and Distributors Association (ARDA) Executive Secretary Anibor O. Kragha said investment in LPG infrastructure will be critical to addressing the continent’s clean cooking deficit and meeting rising energy demand over the next two decades.
Nearly one billion Africans still rely on firewood and charcoal for cooking, contributing to household air pollution, deforestation and preventable deaths.
In an article outlining the continent’s downstream investment prospects, Kragha said household air pollution kills approximately 815,000 people annually in Africa, while access to clean cooking continues to lag behind population growth.
He noted that between 2022 and 2023, sub-Saharan Africa’s population increased by 30 million, but only 11 million people gained access to clean cooking.
Kragha argued that while refining has dominated Africa’s petroleum sector discussions for years, LPG is emerging as the next major frontier.
He said LPG already accounts for 76% of people gaining access to clean cooking in sub-Saharan Africa, making it an important component of the continent’s energy transition.
LPG consumption
However, consumption remains relatively low.
Sub-Saharan Africa consumed 6.4 million tonnes of LPG in 2025, equivalent to approximately 4.8 kilogrammes per person, compared with more than 50 kilogrammes per person in North Africa.
Demand grew by 12% in 2025 and is projected by CITAC Africa to nearly triple to 17 million tonnes by 2045.
Kragha noted that the continent’s challenge is no longer simply generating demand for LPG, but developing the infrastructure required to ensure reliable and affordable supplies.
He pointed to inadequate import terminals, storage facilities, bottling plants, cylinders and inland transportation networks as some of the major constraints affecting the market.
Although the United States is Africa’s largest LPG supplier, he noted that no sub-Saharan African terminal can currently discharge a full Very Large Gas Carrier cargo of approximately 45,000 tonnes.
Only about 20 LPG storage facilities across the continent have capacities of 10,000 tonnes or more, while many countries maintain stocks covering ten days of demand or less.
This leaves African markets heavily exposed to international price fluctuations and supply disruptions.
LPG price hike due to closure of Strait of Hormuz
Kragha cited the closure of the Strait of Hormuz in 2026, which saw LPG import prices in East and West Africa rise by between 70 and 100 percent above their 2025 average.
He warned that when LPG becomes unaffordable or unavailable, households often return to charcoal and firewood, undermining progress towards cleaner cooking.
“Africa needs investment across the entire LPG value chain, including gas processing, refining, import terminals, strategic storage, bottling facilities, cylinder manufacturing and last-mile distribution.
“Increasing domestic processing and retaining more African-produced LPG within the continent could reduce dependence on expensive imports,” he argued.
He also identified the development of regional import hubs as an important opportunity, particularly for serving landlocked countries that depend on neighbouring coastal markets for fuel supplies.
For instance, Kenya’s port of Mombasa could strengthen LPG supplies to Uganda, Rwanda, South Sudan and the eastern Democratic Republic of Congo.
Similarly, Tanzania could serve Zambia, Malawi, Burundi and parts of the Democratic Republic of Congo, while Angola could supply regional markets through the Lobito Corridor.
He noted that these regional arrangements could improve economies of scale, reduce transportation costs and strengthen energy security.
Kragha also identified the Democratic Republic of Congo and Ethiopia as frontier markets with significant growth potential.
Despite having a combined population exceeding 250 million people, the two countries consumed only about 53,000 tonnes of LPG in 2025.
He said developing supply routes into such underserved markets could create substantial long-term opportunities for investors.
Call for public-private partnerships
The ARDA Executive Secretary said no single investor can develop Africa’s LPG industry independently, calling for partnerships involving international traders, African national oil companies, development finance institutions and local distributors.
He proposed regional hub consortia in which international traders provide operational expertise, producers secure long-term supply contracts, African governments facilitate infrastructure development and financial institutions provide capital.
He identified institutions such as Afreximbank and the Africa Finance Corporation as important potential partners in financing viable projects.
Kragha further said the Global LPG Partnership and ARDA are progressing a proposed US$1 billion clean cooking investment fund to support infrastructure development across the continent.
He argued that access to financing should be directed towards the entire supply chain rather than focusing exclusively on the purchase of cooking stoves.
According to Kragha, the International Energy Agency estimates that achieving universal access to clean cooking in Africa will require approximately US$2 billion annually by 2040.
He maintained that the investment is relatively modest compared with global energy financing requirements, but bankable projects, appropriate regulatory frameworks and effective partnerships remain essential.
Implications for Zambia
For landlocked countries such as Zambia, the expansion of regional LPG infrastructure could provide opportunities to diversify energy sources, improve supply security and expand access to cleaner household cooking fuels.
Tanzania’s potential role as a regional supply hub is particularly significant, given its geographical position and access to neighbouring markets.
However, translating these opportunities into affordable household access will require investments in inland transportation, storage, bottling and distribution networks.
Kragha said the countries and investors that move early to secure strategic locations, supply agreements and distribution networks will be better positioned to benefit from the projected growth in LPG demand.
He is expected to engage industry stakeholders at ARDA’s third LPG Forum scheduled for November 24–25, 2026, in Dar es Salaam, Tanzania.
The forum will be held under the theme, “Unlocking Africa’s LPG Potential: A Catalyst for Industrialisation, Energy Security and an Inclusive Energy Transition.”
As Africa pursues its energy transition and industrialisation ambitions, the development of a reliable LPG supply chain could become an important part of addressing energy poverty while improving public health.
Discussion about this post