The African continent is home to nearly a billion people who still cook using wood and charcoal, resulting in approximately 815,000 deaths annually due to air pollution. In 2023, the population of sub-Saharan Africa grew by 30 million, but only 11 million gained access to clean cooking methods. Akinwumi Adesina, former president of the African Development Bank, highlighted the need for clean cooking solutions during the first AIE Summit on Clean Cooking in Africa in Paris in May 2024.
Liquefied Petroleum Gas (LPG) is becoming a crucial component in Africa's energy mix, with the product experiencing rapid growth on the continent. LPG accounts for 76% of people accessing clean cooking in sub-Saharan Africa. However, the region's consumption stood at 6.4 million tons in 2025, translating to 4.8 kg per capita, significantly lower than the 50 kg per capita in North Africa.
The demand for LPG in Africa is expected to almost triple to 17 million tons by 2045, according to CITAC Africa. However, the current supply chain is insufficient to meet this growing demand. The United States is the largest supplier of LPG to Africa, but the continent lacks the infrastructure to handle large shipments. Only a few terminals in sub-Saharan Africa can receive full cargoes from very large gas carriers.
Investments are urgently needed across the LPG value chain, from gas processing and import terminals to bottling plants, logistics, and household cylinders. The African Investment Bank estimates that achieving universal access to clean cooking in Africa will require approximately $2 billion in annual investments by 2040. However, the capital is not scarce; rather, it is the bankable financing structures that are lacking.
Various stakeholders can play a crucial role in investing in LPG infrastructure. US producers, for instance, can offer long-term contracts to make import platforms bankable. International traders like Petredec, Vitol, and Trafigura have the necessary capabilities to develop multi-country platforms. Gulf partners, including national oil companies and sovereign wealth funds, can provide capital and financing for cargoes.
China is also a key player in Africa's LPG market, with investors already engaging in discussions. In April, the Nigerian National Petroleum Corporation signed a memorandum of understanding with Sanjiang Chemical and Xinganchen to explore potential partnerships in revamping and developing Nigeria's refineries. Mobilizing capital for LPG infrastructure is crucial to unlocking the sector's growth potential.
The next phase of Africa's growth will be shaped by those who invest in infrastructure linking supply to demand. The opportunity for LPG in Africa is vast, and those who act first will contribute to shaping the sector's future. With the right investments, Africa can transition to cleaner cooking solutions, reducing air pollution and improving the quality of life for millions of people.
Key points
- The demand for LPG in Africa is expected to almost triple to 17 million tons by 2045.
- Investments are urgently needed across the LPG value chain to meet growing demand.
- Various stakeholders, including US producers, international traders, and Gulf partners, can play a crucial role in investing in LPG infrastructure.
