LPG Distribution for Cooking - Ghana

In Ghana the main source of cooking fuel in the rural areas is firewood. A local enterprise has purchased a site outside of Accra to set up an LPG distribution center. However access to LPG is but one barrier to firewood substitution. The majority of these households cannot afford the up-front cost of the LPG stoves and cylinders. The enterprise therefore proposes to offer a financing plan for homeowners to switch to LPG.

With the support of AREED a business plan is being finalized for the proposed plan. If promising, AREED will assist in the design of the financing mechanism as well as provide working capital to launch the scheme. Additionally AREED will assist the entrepreneur in identifying local sources of capital and will consider providing a guarantee to establish a line of credit with a local bank.