Africa's LPG market needs $2 billion annual investment
The continent's fastest-growing petroleum product requires infrastructure upgrades to meet rising demand for clean cooking.
Africa needs about $2 billion annually by 2040 to achieve universal clean cooking access, a fraction of global energy investment. Liquefied Petroleum Gas (LPG) is the continent's defining downstream opportunity for the next two decades, with demand growing rapidly. Nearly one billion Africans still cook with firewood and charcoal, leading to significant household air pollution deaths.
Despite a 12% demand growth last year, sub-Saharan Africa's LPG supply chain is underdeveloped. The region consumed 6.4 million tonnes in 2025, far below North Africa's consumption, and forecasts predict demand will nearly triple to 17 million tonnes by 2045. Investment is urgently needed in processing, import terminals, bottling plants, and logistics to connect supply to demand.
The current infrastructure cannot handle large import vessels, and storage facilities are limited, often covering only 10 days of demand. This leads to reliance on expensive spot market purchases and price volatility, forcing households back to charcoal when fuel costs double. Experts state capital is available, but bankable structures for the entire value chain are lacking.
Why it mattersAfrican households seeking cleaner cooking methods and businesses involved in the LPG supply chain are directly affected by the need for infrastructure investment.