Providing gas to poor households in greater Cape Town

Worldwide, liquid petroleum gas [LPG] has replaced paraffin (kerosene) as a domestic fuel in all except three countries. There are several reasons for this, the most important being the demonstrated greater safety of LPG. However, when attempts were made to move away from paraffin as the fuel of choice in South Africa, a number of barriers were identified. A primary one was commercial, with one of the players being dominant in the market and unwilling to make changes to the distribution system that would allow economic supply to low-income households. Further barriers included lack of familiarity with the product among the potential low income customers, and lack of good, safe appliances. There were also technical challenges in ensuring a safe distribution route, which necessitated finding novel means for refilling the cylinders, and developing a purpose-modified ISO shipping container in which to store cylinders, which has proved itself under real fire conditions. Value engineering showed that the optimum cylinder was 5kg, which also met most household´s needs for over a month. The appliance market was studied, and volume sources identified that were able to supply a good quality product at a very competitive price. The upshot is that LPG can now be delivered close to low-income homes at a price fully competitive with paraffin, and the households can have affordable, safe appliances for LPG use. The result has been the development of a rapidly growing business, and a marked improvement in the lives of the poorest citizens of South Africa. (249 words)