1. CLEANER COOKONG CAMP Presentation
Quantitative and Qualitative Market Research on Liquefied Petroleum Gas in Malawi (Supply and Demand)
CLEANER COOKONG CAMP Presentation by
ADMORE CHIUMIA
Funded by the Protecting Ecosystems and Restoring Forests in Malawi (PERFORM) activity of the United States Agency for International Development (USAID Malawi )

2. Introduction
Use of biomass energy (charcoal and firewood) has increased: 95% in 2014.
Consequences
Deforestation: estimated hectares of natural forest across Malawi destroyed
Undermining agricultural productivity and food security
Undermining hydroelectric power generation

3. Introduction cont’d
A “rapid scan” done under the National Charcoal Strategy to ease pressure on charcoal and firewood identified Liquefied Petroleum Gas (LPG)
Market assessment on LPG in Malawi constitutes a major follow up

4. Objectives
Broad objective: Assess the potential for an LPG market in Malawi
Specific objectives:
Understand feasibility of LPG market in Malawi
Analyse the demand and supply dynamics of LPG in Malawi
Identify and analyze barriers to development and expansion of LPG market in Malawi
Provide specific and actionable recommendations

5. Methodology Targeted respondents: Geographical coverage:
Consumers ( households and institutions)
Suppliers
Regulators
Geographical coverage:
North:Mzuzu, Mzimba and Karonga
Centre: Lilongwe, Kasungu and Salima
South: Blantyre, Zomba and Mangochi

6. Methodology Cont’d Sampling techniques
Demand-side: Purpose sampling
Supply-side: All major suppliers
Regulators: All regulators
Sampling size for demand side actors
Households: 332 (300)
Institutions: 81(45)

7. Methodology Cont’d Data collection instruments Household questionnaire
Institutional questionnaire
Key informant interview and In-depth interview guides
Case studies

8. Demand-side Results (Households)
Use of LPG
Users: 47%
Non-users: 53%
Awareness of existence of LPG among non-users
Aware: 74%
Not aware: 26%

9. Demand-side Results (Households) cont’d

10. Demand-side Results (Households) cont’d

11. Demand-side Results (Households) cont’d

12. Demand-side Results (Households) cont’d

13. Demand-side Results (Households) cont’d

14. Demand-side Results (Households) cont’d

15. Demand-side Results cont’d

16. Demand-side Results (Households) cont’d

17. Demand-side Results (Institutions) cont’d

19. Demand-side Results (Institutions) cont’d

20. Supply-side Results
Number of Suppliers/importers and their geographical presence
AFROX: Blantyre, Lilongwe, Mzuzu , and different districts in Malawi
Industrial Oxygen : Blantyre, Lilongwe, Mzuzu, Salima
Delta Gas: Lilongwe

21. Supply-side Results cont’d
Capacity: very limited
Industrial Oxygen: Storage Capacity of 40 tonnes
Delta Gas: import 50 tonnes a month
Distribution network
AFROX: Gasman (Blantyre), Chigodi (Lilongwe), Gas and Gadgets (Zomba), Mzuzu Panel Beaters (Mzuzu)
Industrial Oxygen: none
Delta Gas: none

22. Supply-side Results cont’d
Time taken to import
More than a month to bring a truckload
Challenges in importing LPG
Advance payments
VAT on LPG imports

23. Results (Regulators)
National Energy policy to reduce reliance on firewood to 30% by 2030
MERA is currently involved in raising awareness of LPG through television, radio and the print media
Lack of monitoring or enforcement in the LPG sector

24. Results (Regulators) Cont’d

25. Willingness to pay (WTP) for LPG: Demand side
WTP for LPG from both users and non-users.
WTP averaged MK62, for all households
However, there were differences in the levels of WTP for households with different socioeconomic characteristics

26. Willingness to pay for LPG
Characteristic
WTP (MK)
Gender
MHH
65197
FHH
61957
Income
MK50,000-MK200,000
39,311
MK201,000-MK500,000
61,381
MK501,000-MK800,000
66,872
MK800,000-MK1000,000
81828
Above MK1000,000
79958
Education
Primary
43,556
Secondary
51,484
Tertially
67,770

27. Gender participation in LPG related activities
Activity
Women participation (%)
Initial decision to buy LPG
19.9
Paying for LPG
32.7
Cooking using LPG
49.4

28. Gender perspectives from the suppliers of LPG
The study noted the following:
LPG involves men, women and children.
Unlike firewood, men participate in the purchase and refilling of LPG gas cylinders.
Males participation in LPG could be attributed to the fact that LPG is generally associated with people of a certain high social economic class.
As much as women are the ones who use LPG, men have a say on how much a household can spend on LPG as such, both men and women should be involved in efforts to promote increased adoption of LPG as an alternative cooking fuel.

29. Recommendations (Demand-side)
Subsidies
Increasing distribution network to reduce transactional costs
Gradual recovery of cylinder cost

30. Recommendations (Supply side)
Raise awareness about benefits
Remove 16.5% VAT and 5% levy
Introduce a system that allows cross-filling of cylinders
Provide incentives to reach rural population