PayGas, the pay-as-you-go gas retailer, opens first station in Soweto, Gauteng
- Pay as you Gas™ first 4 stations in Western Cape are already servicing 10.000 clients and more than 40.000 beneficiaries
- PayGas plan to deploy 52 more stations in South Africa in the next 2 years, reaching 200.000 customers and creating 300 jobs for local entrepreneurs inside low-income communities
- Tapping into a R4.5bn ($300 Million) market for low-income household energy inclusion in SA, and R600 bn ($40 bn) in Africa
On Saturday, 13 March 2021, PayGas opened its first station in Soweto, Gauteng to reach thousands of beneficiaries previously without access to affordable, clean cooking energy. This is on top of the 4 pay-as-you-gas™ stations in Western Cape servicing more than 40 000 low-income beneficiaries in Delft, Nyanga, Philippi and Kayamandi townships, thanks to the dedicated support of Clean Cooking Alliance, AFROX (Linde Group) and PICK N PAY.
Today, an estimated 21 million individuals1 in South Africa, and 900 million on the African continent are without access to affordable clean cooking. PayGas‘ mission is to offer affordable access to clean cooking energy (LPG), through the implementation of safe and locally managed gas dispensing stations in townships, where consumers can buy only what they can afford, thanks to a proprietary technology that fractions gas purchases into smaller quantities. This makes the purchase process more flexible and hence affordable to low-income households in South Africa.
According to research2, a family of four people typically consumes an average of 7 kg of LPG for cooking purposes each month. The average household runs out of a 5 kg cylinder after 2 to 3 weeks. Often, low-income households cannot afford to swap an empty cylinder for a full sealed one – currently priced at R120 (8 $) – before their next income. This forces thousands of individuals across the country to revert to alternative sources such as paraffin (kerosene), charcoal, wood, or expensive grid electricity3 to fulfill their monthly cooking needs. Gas is by far the cleanest, most sustainable option available as it pollutes 20% less than kerosene and half as much as coal.4
Launched silently in 2019 and already counting more than 9500 consuming households, PayGas works thanks to a patented pay-as-you-go software payment platform combined with a cashless refilling station, connected to a barcode on customers’ cylinders. Starting today, PayGas users located in Soweto can purchase an electronic Flash voucher (01for You from PEPKOR) at any spaza shop nearby, go to the Pay-as-you-gas™ station, and fill their cylinder, totally or partially, for as little as R10 (0.5 USD).
Together with Afrox (Linde Group) and through a micro franchising with Pick n Pay Market Stores owners, PayGas plans to roll out more than 50 Pay-as-you-gas™ stations within the next 2 years.
“The agreement with Pick n Pay and Afrox (Linde Group) is a major milestone for PayGas’ deployment plan,” said Philippe Hoeblich, Founder and CEO at PayGas. “With their implantation, support, and logistics, we can now execute the phase 01 of our ambitious plan to roll out more than 50 new PayGas stations catering for close to 200 000 customers across major townships in South Africa in the next 24 months. I founded PayGas in response to a gaping need for flexible affordable clean cooking energy for lower-income households in urban areas across South Africa and we cannot wait to execute on our ambitious plans to cater to households in more cities in the country and across the continent.”
“We are delighted to have supported PayGas to deploy its first station outside the Western Cape,” said Simba Mudimbu, Senior Manager for Private Sector & Investment with the Clean Cooking Alliance. “The launch of the Soweto station, which is a model for safe, in-community LPG re-filling stations, demonstrates that the pay-as-you-gas business model can be scaled across South Africa and beyond. We look forward to continuing to support PayGas to maximize impact through its commitment to providing affordable access to clean cooking energy.”
With its solution Pay-as-you Gas™, PayGas is the leading pas-as-you-go gas provider in South Africa. Founded in 2019 by Philippe Hoeblich and a team of international experts in the field, it delivers flexible affordable clean energy to lower-income households across the country. For more information visit paygas.africa.
2 “Investigating the current and future roles of paraffin in South Africa”, ENERGY RESEARCH CENTER/ University of Cape Town (2012)
4 Africa Energy Outlook 2019” (International Energy Agency, IEA)