Trafigura invest to accelerate access to LPG in Africa

Trading company Trafigura has purchased a minority stake in UK utility company Bboxx. The size of the stake and the value of the deal have not been disclosed.

Bboxx has an established solar technology business in Africa and Asia and in July 2019 began expanding into the pay-as-you-go (PAYG) LPG sector.

Bboxx is running PAYG pilot schemes in the Democratic Republic of Congo (DRC), Rwanda and Kenya. Households in the scheme use around 6kg a month, the company said.

PAYG meters enable households in developing countries to access LPG clean cooking equipment, circumventing the upfront cost of purchasing a whole cylinder of LPG. Bboxx's programmes use smart meters developed by Nairobi-based start-up PayGo Energy. Bboxx has also developed an online platform, connected to smart meters, which allows the company to remotely deliver clean cooking.

The IEA estimates that 900mn people in sub-Saharan Africa — 70pc of the population — lack access to clean cooking.

"The use of charcoal and wood result in significant emissions of greenhouse gases and black soot, as well as deforestation," Trafigura said. "The lack of modern cooking solutions also has negative health and gender equality consequences, and results in lost economic opportunities".

"Access to modern clean cooking services using LPG is significantly cleaner and a vital step in the energy transition to low and zero-carbon sources," Trafigura said.

"We are working with Trafigura, specifically as a market leader in LPG, to leverage their expertise and to drive further growth as we seek to scale our clean cooking services further," Bboxx said. "As a global leader in LPG, Trafigura will play a major role in the future supply growth of LPG across Africa," the firm said.

By Aidan Lea