Havgas Partnered with CCA to Scale-Up Affordable LPG Cooking Solutions for Low-Income Consumers in Kenya
The Fusion Experience Ltd., a sustainable energy company based in Kenya, has developed Havgas, an innovative business model offering 0.5 kg LPG cylinders to low-income consumers in high-density urban areas. The aim is to increase access to modern cooking solutions at an affordable price.
While LPG presents an effective alternative to dirty and inefficient cooking fuels, high costs of use pose a challenge to lower-income households. To address this, Havgas offers 0.5kg LPG cylinders that retail at a cost competitive with charcoal. At this price point, Havgas aims to compete with and substitute charcoal that many urban households buy on a daily basis. In addition to affordability, Havgas’s LPG solution also offers greater value for households based on longer cooking time (+/-3 days for an average household) compared to the equivalent spent on charcoal and a better overall cooking experience.
The Clean Cooking Alliance’s (CCA) Venture Catalyst Program supported Havgas to build out a comprehensive business plan and financial model for its operations and develop a strategy for scale. EED Advisory, a Nairobi-based consulting firm, provided third-party technical assistance to Havgas.
The project scope included:
- Independent validation of the product value proposition to the target household customer.
- Exploring pricing, affordability, and demand parameters of the LPG market through household surveys and focus groups.
- An analysis of Havgas’s unit economics as a “tool and fuel” player and building a comprehensive financial model.
- Providing the Havgas team with a roadmap for investor engagement and fundraising.
Following this project, Havgas is in a strong position to begin engagement with targeted investors with a clear plan for investment and growth.
“We wanted a third party to look at the work we had done in establishing Havgas and the market proposition for 0.5kg LPG cylinders. We were also conscious that we needed to have the tools to better explain our business model to potential investors. We are confident that we are on the right path and have something unique to offer in the pay-as-you-go LPG market. We look forward to continuing to work with the CCA Ventures team as we execute our plans.”
– Geofrey Lusaggi, Fusion Experience Kenya Limited
