3 Great Opportunities to Get in on Botswana’s Booming LPG Business
If you haven’t been paying attention, LPG (liquefied petroleum gas) is on the rise in Botswana! As more households swap firewood for cooking gas, the market is bursting with business opportunities. Here’s everything you need to know to jump in.
The Growing Popularity of LPG.
LPG is quickly becoming the preferred energy source in Botswana. The reason? More and more households are making the switch from firewood to gas, driving up demand. According to Botswana’s energy regulatory authority (BERA), the country consumed a staggering 21,000,000 kilograms (21,000 tons) of LPG in 2021!
A Major Business Opportunity.
Despite the surging demand, citizen participation in the LPG market remains low, especially in supply and distribution. This leaves a massive gap for savvy entrepreneurs ready to make their mark.
The Infrastructure is Lacking—And That’s Good News for You.
There’s limited investment in gas infrastructure, particularly in storage and distribution. That’s where you come in. From importing to retailing, the market is wide open for those ready to seize the opportunity.
Winter Woes = Business Gold.
Every winter, Botswana experiences severe LPG shortages. While this may seem like a problem, it’s actually a golden opportunity for those in the supply chain. When demand spikes, so do profits!
Opportunity #1: Become an LPG Importer.
Importing LPG, especially via South Africa, is a lucrative opportunity. Once the gas is cleared at the border, it’s stored in bulk tanks and sold to wholesalers, distributors, and retailers. Think big and the profits could follow!
Opportunity #2: Become an LPG Distributor.
If importing isn’t your thing, consider becoming a distributor. Distributors purchase LPG in bulk from wholesalers, store it in their own tanks, and then sell it to retailers, government institutions, companies, and the general public. It’s similar to wholesaling but on a smaller scale.
Opportunity #3: Become an LPG Retailer.
Prefer to keep things simple? Retailing might be your path. Botswana has two types of LPG retailers: those who exclusively sell LPG and need a BERA license, and those who sell LPG alongside other hardware products, licensed by local councils. It’s an easy entry into the market.
Final Thoughts.
Botswana’s LPG market is on fire, and with the right strategy, you could be a major player. Whether you’re interested in importing, distributing, or retailing, the opportunities are there. Don’t let them pass you by.
