South Africa’s goal to become a key LPG gateway is coming into focus

South Africa’s position as a gateway for liquefied petroleum gas (LPG) into sub-Saharan Africa is widely accepted across the industry. However, there are questions about whether the country is ready to take on this role at a larger scale.

This is especially important in a region where about 900 million people still use wood and charcoal for cooking, and where demand for LPG is expected to rise as more people look for cleaner energy options.

At the Sub-Saharan Africa LPG Expo, convened by LPG Expo and the Liquefied Petroleum Gas Association of South Africa (LPGSA), a panel discussion on South Africa’s role as a regional hub brought together perspectives from across the LPG value chain, spanning supply, distribution and regional market development.

South Africa’s strategic position is clear. The country has established trade routes, is close to key supply markets and is seeing more policies that support clean cooking. South Africa is “already well positioned”, and national and regional frameworks are starting to help the country play a more co-ordinated role.

However, there are concerns about how ready South Africa is, with the discussion reflecting a shared view that the current system has not yet reached the level required to support growth at scale, with infrastructure gaps continuing to shape how the market develops.

These gaps are clear throughout the system. Bulk storage is still limited, which makes the market vulnerable to supply disruptions. Rail infrastructure, which could help move LPG from the coast to inland areas, has not grown fast enough. Distribution still depends mostly on busy road networks.

The need for additional storage capacity and a stable transport infrastructure emerged as a consistent theme, particularly in terms of capacity that can support both domestic demand and regional trade.

The discussion also highlighted that the challenge extends beyond infrastructure into how the market operates on the ground. Illegal filling practices continue to distort the operating environment, creating risks for safety and placing compliant operators at a disadvantage. If rogue filling, for example, isn’t curbed, there’s no incentive for importers to bring product in which has immediate effects: Cylinders go missing, safety is at risk and businesses that follow the rules are put at a disadvantage.

Enforcement was also a common theme in the discussion. While regulations exist, they are not always applied evenly. Without clear consequences for breaking the rules, it is hard to keep the system stable.

For investors and operators, this leads to uncertainty. People are more cautious with their investments, especially when asset protection and enforcement are unreliable. Assurance depends on strong enforcement, compliance and a stable business environment. When these are in place, investment is more likely. Without them, growth slows down, even if there is clear demand.

The panel also talked about households, since this is where LPG is actually used. Clean cooking is a main reason for demand, but just having access to LPG does not mean people will use it. The upfront cost of a cylinder is still a big barrier, especially for low-income families.

Discussions highlighted that the cost of a cylinder deposit is often much higher than what many families can afford at once. This affects when and how people start using LPG, and how regularly they use it.

Panellists spoke to the need for models that reflect these realities, noting that “every region, every village has a different need” as a real-world example of why local solutions matter. The industry is adapting by offering smaller cylinders, more local supply points and flexible payment options. The ability to move product across borders remains central to how supply is balanced across the region.

However, this flexibility relies on efficient systems and smooth processes. When there are problems at borders, delays and extra costs add up, making the supply chain less responsive.

The panel at the LPG Expo made it clear that South Africa is already playing a role in the regional LPG market through current trade and supply links. The future will depend on how well infrastructure is improved, how reliably rules are enforced and how much confidence there is for long-term investment.

“South Africa has the infrastructure and strategic position to become the leading LPG gateway for sub-Saharan Africa. While challenges remain, the commitment to developing cleaner energy solutions, combined with government support, makes this an exciting time for the industry,” said Gadibolae Dihlabi, managing director at LPGSA.

“With continued investment and collaboration, South Africa is poised to drive meaningful change across the region.”

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