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South Africa: LPGas for African Development
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BuaNews (Tshwane)
25 October 2007
Posted to the web 25 October 2007
Cape Town
Liquid Petroleum Gas (LPGas) can be used to alleviate energy poverty and promote development in Africa.
During her opening address at the 20th World Liquid Petroleum Gas Forum being held in Cape Town, Minister of Minerals and Energy Buyelwa Sonjica said the theme of the forum, 'LPGas for African development', was very appropriate.
"Africa is home to 14 percent of the world population. Africa is rich in energy minerals and resources, with coal in southern Africa, oil and gas in North, West and Central Africa.
"Africa has 7 percent of the world oil resources. We produce 10 percent of total world output, but only consume 4 percent of the world's total annual consumption, she said.
"Our continent has enough oil and gas resources to trade among its member countries, and then to export the remainder."
Low electricity access, the minister said, is clearly demonstrated by the fact that only 37.8 percent of the population having access to electricity in Africa, with 68 percent being in the urban areas.
"This clearly leaves Africa as a dark continent despite the fact that we boast huge resources of energy minerals," Ms Sonjica said.
"Colleagues, ladies and gentlemen, energy consumption and economic growth are inextricably linked as energy is fundamental to the socio-economic development of our continent," she said.
Ms Sonjica also said that innovative solutions were needed to address the challenges of energy poverty in Africa and that energy and poverty are inextricably linked.
"There is a growing consensus that energy is central to reducing poverty and hunger, improving health and improving the lives of women and children generally.
"Sustainable development will only happen when energy poverty is tackled and the environment is protected," Ms Sonjica said.
"Crucial to both is the expansion of clean, affordable and accessible energy. LPGas can play that role."
She said that poor people spend up to a third of their salaries on energy, mostly for cooking and heating and that in rural sub-Saharan Africa, many women carry 20kg of fuel wood an average for 5km every day.
"This is time that could be spent on child care, education, socialising and also generating income."
The issues confronting the energy sector in general are those of security of supply and volatility of prices, said the minister. She added that in Africa we have the additional challenge to ensure that energy industries are able to contribute to broader economic growth and poverty reduction and that LPGas is linked to crude oil and its price volatility.
She said the price of LPGas, especially in South Africa is very high and the majority of the poor cannot afford LPGas.
"I understand that the conference is also addressing this challenge and I hope that recommendations will be made to guide those countries that are currently promoting LPGas consumption on this thorny issue of pricing," she urged.
She also urged private public partnerships in the LPGas industry and said that companies should invest in the energy sector now in order to unlock the economic potential of Africa.
An increased use in South Africa of LPGas has led to shortages in recent winters which Ms Sonjica said was unacceptable and needs to be addressed by industry.
"It is critical that the international companies involved in the sector provide finance to invest in infrastructure developments which will facilitate and ensure security of supply of LPGas in the country," she said.
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"LPGas as an energy carrier in Africa has been accepted by households, industrial and commercial consumers. The challenge is how best to grow the market."
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