South African based manufacturer of gas products Afrox has partnered with Ulula Energy to provide safe and affordable gas to the Western Cape’s informal domestic and residential markets.
Under the partnership, Ulula Energy will supply Afrox Safety Gas and Handigas cylinders to the low income housing and residential sectors as well as light industries in the province.
Gerhard van Wyk, national business manager for LPG, said the agreement forms part of Afrox’s strategy to branch out from its core business of supplying gas to large industrial commercial enterprises. Read more: Gas demand awakens new fields
“Ulula Energy has access to knowledge, experience and business contacts in the informal domestic gas market, and for that reason Afrox made the decision to appoint the company as the preferred LPG distributor of Afrox cylinders to the informal residential, domestic and light commercial industries in the Western Cape,” said van Wyk.
Ulula Energy is a Level 1 BBBEE contributor and independent black South African woman-owned and managed LPG distributor.
Owner of Ulula Energy, Rizelle Sampson, said the company’s primary objective is to develop a portfolio of high-growth energy companies centred on providing consumers with a diversified energy mix that is competitive and innovative.
Van Wyk said his company had identified a wide scope for growth in the informal and domestic gas market in South Africa as low income households begin to move away from the use of paraffin for cooking and turn to safer gas alternatives.
“Gas is becoming more and more competitive as a standalone energy alternative or in a hybrid system with electricity,” he explained.
The company’s lighter and more portable 5kg Safety Gas cylinders have been specifically chosen for the low-cost housing market where residents often have to carry cylinders from gas depots to their homes.
Van Wyk added that once established in the Western Cape, similar low-cost business models will be rolled out in other areas across the country.