AFROX

  • Dwangwa and Nchalo
  • Started 2012
  • 2017 to 2018 demand doubled
  • Duty removed now only paying VAT
  • Prices controlled by MERA
  • Distributors offered discount to make profit
  • No policy of illegal selling of cylinders
  • Cylinder refill model
  • Usage of cylinders belonging to Afrox by other players
  • They only refill cylinders belonging to them
  • Initial charge expensive (duty on cylinders and associated equipment still applicable)
  • Margins not enough for the players to conduct awareness campaign hence need for the Govt. to assist
  • Less than 1% using LPG in Malawi
  • 6kg handy-pack K56,000
  • Organization visits as a marketing strategy (Payment in installments) – challenges were in the collections of the costs
  • Plan was to have distributor in every 10 KM
  • 55 tons in BT
  • 40 tons in LL
  • Cylinders from competitors not filled however cylinders from neutral players can be filled while Afrox cylinders are refilled
  • Maintenance of the cylinders for the Afrox done by the

265 (Afrox distributor)

  • Done print media, radio, tv etc
  • Giving safety tips, saving tips, pros and cons
  • AFROX locating distributors within reach ( 21 distributors available in whole Malawi)
  • All distributors require licenses, same licensing fees for all distributors like big institution PUMA, licenses per location,
  • MERA license, Trading license, retail license, EMP, storage license

CISONECC

  • Responsible for policy advocacy
  • Is there like an association for the gas players – no association currently available
  • Big shift

ALL

  • Conditions are prohibitive, 5 years audited accounts etc
  • Outlets not being developed due to prohibitive conditions
  • AFROX has a criteria for evaluating the sites for the distributors
  • Requirement for MBS certificate (for product that’s not being worked on)
  • Other gas suppliers refill each other’s cylinders and only Afrox does not refill for the competitors
  • Training by the distributor to the consumer of how the cylinder is used
  • Technical people to be trained so that they can maintain the equipment ( cookers) in the rural areas (TEVET, MZUNI, etc)

Other LPG Players (IOC 3 Outlets and DELTA 2 outlets)

WAY FORWARD

  • Sharing of experiences and information (analysis of usage and awareness strategies)
  • Develop messages for the awareness campaigns (demonstration)
  • Share the policy and other instruments for LPG promotion
  • Support to the industries
  • Prayer