BY ADMORE CHIUMIA ENERGY CONSULTANT – PRACTICAL ACTION CONSULTING QUANTITATIVE & QUALITATIVE MARKET RESEARCH FOR LIQUEFIED PETROLEUM GAS IN MALAWI BY ADMORE CHIUMIA ENERGY CONSULTANT – PRACTICAL ACTION CONSULTING

INTRODUCTION Practical Action Consulting has been awarded a Contract to conduct a Quantitative and a Qualitative Market study for LPG by USAID Malawi through PERFORM activity.

Introd… Increase in Population of Malawians using Charcoal as a Primary Cooking Fuel. From 2% in 1998 to 11.3% in 2014 (NSO 1998, 2014). Increased urbanization (4.2%) against an annual population growth of about 2.8%. Increased Loss of Forests.

PROJECT GOAL The goal of the project is to support National Charcoal strategy (NCS) framework on increasing use of fuel- efficient cook stove technologies (to increase efficiency in consumption of biomass energy) in Malawi.

RESEARCH OBJECTIVES To analyze and summarize experiences with LPG promotion in sub-Saharan African Countries. Undertake quantitative research to document the comparative costs and efficiencies (in areas not limited to effects/impacts and indoor pollution) and cooking fuels in Malawi To quantitatively assess LPG market potential in Malawi and document recommendations to scale-up adoption

SIGNIFICANCE OF THE STUDY The outcome of this research will feed into the National Charcoal Strategy, which will provide a framework for addressing the linked problems of increased Deforestation and Increased Demand for Household Cooking Fuels.

KEY ACTIVITIES Undertake quantitative research to document the comparative costs and efficiencies (in areas not limited to health effects/impacts and indoor pollution) of cooking fuels. i.e. Paraffin, firewood, charcoal, electricity, LPG. Quantitatively assess LPG market potential in Malawi and document recommendations to scale-up adoption. Assessment of LPG demand, supply and market structure in Malawi, including an analysis of constraints to market development/growth. Conduct Regional Stakeholders Validation Workshops

Coverage & Duration The Market Research will cover the country, focusing on all the four cities, plus a good sample of the districts in each region. Duration for the Project is 12 Months (May 2017 – April 2018)

Expected Outputs / Deliverables summarize experience with LPG promotion from other countries in Sub-Saharan Africa to understand what has worked (and why), what did not work (and why), and the influence of contextual variables in addressing the common market barriers to LPG adoption. Examine the LPG value chain in Malawi and identify market channels, actors and their functions; the strengths and weaknesses of each function and actor; and recommendations for increasing the likelihood of LPG adoption. Evaluate supply and demand, market size and growth (at present, and projected into the future), supply cost and pricing, competitiveness of LPG against other market options, risks and mitigating factors, and recommendations.

CONCLUSION It is hoped that LPG, as clean and an environmentally friendly fuel, has a potential to become an alternative to Charcoal for Household Cooking

THANK YOU VERY MUCH. ZIKOMO KWAMBIRI.