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