Investisseurs & Partenaires and BIO invest in Ghanaian company XpressGas
The impact investing group Investisseurs & Partenaires (I&P) and the Belgian Investment Company for Developing countries (BIO) are pleased to announce a USD 6 million investment in XpressGas, a pioneering distributor of Liquefied Petroleum Gas (LPG) in Ghana. LPG offers an efficient and environmentally friendly alternative to traditional dirty fuels currently being used, particularly for peri-urban and rural areas.
24-06-2021
XpressGas is raising USD 6 million, USD 3 million in equity from I&P and USD 3 million in debt from BIO to accelerate the growth of its B2C segment, to further consolidate the B2B business, and to improve its information system, health and safety standards.
We are delighted to welcome I&P and BIO’s support of XpressGas’ goal to become the premier LPG marketing and distribution company in Ghana through innovation and exceptional customer service.
Kofi Nketsia-Tabiri, founder and CEO of XpressGas
A leading and pioneering company in the energy sector in Ghana
XpressGas Limited is the fastest-growing and one of the largest LPG companies in Ghana. The company currently has 31,000 branded LPG cylinders under management and 27 LPG bulk road and delivery vehicles and it operates a network of 60 LPG refilling stations and vendors across Ghana. The main focus of the business is on the peri-urban and rural areas of the country.
Over 75% of Ghana’s household population still relies on charcoal and kerosene as their primary sources for cooking fuel. With 94% of customers first-time LPG users, XpressGas has a direct positive impact on the air quality of its clients, reducing CO2 emissions, averting deforestation and reducing black carbon emissions, with considerable environmental and health benefits. The company’s ambitions are fully aligned with Ghana’s government’s stated target to increase the usage of LPG as cooking fuel by 50% in 2030 and to raise awareness on environmental, health and safety matters.
XpressGas was launched in 2009 by Kofi Nketsia-Tabiri, and has advanced to the ranks of the top LPG companies in Ghana in just 8 years.
“We are delighted to welcome I&P and BIO’s support of XpressGas’ goal to become the premier LPG marketing and distribution company in Ghana through innovation and exceptional customer service. XpressGas is committed to increase the market penetration of LPG as cooking fuel and contribute to a reduction of deforestation – caused by the use of wood and charcoal as cooking fuels – as well as a reduction in the negative health effects caused by the associated smoke production”, said Kofi Nketsia-Tabiri, founder and CEO of XpressGas.
Good for the people, good for the environment
An investment led by Investisseurs & Partenaires and BIO
On I&P’s side, the investment is led by I&P Afrique Entrepreneurs II, a fund that invests in equity and quasi-equity as a minority shareholder in small and medium-sized businesses located in Sub-Saharan Africa. "The LPG industry in Ghana is currently at a transition point in terms of regulation. We are excited to partner with a stand-out entrepreneur who has positioned XpressGas to reflect what this pivotal moment demands: innovation, greater accessibility and higher safety standards," says Baafour Otu-Boateng, Investment Director at I&P.
BIO was particularly struck by the company’s strong management team and the project’s positive impact on the Ghanaian population’s health and environment. Elsie Ndada, Investment Officer at BIO “is especially pleased with the sustainable vision and ambition of the founder and how successful the perfectly gender-balanced Executive Management has led so far, the exceptional growth of the company having health, security, safety, and quality at the heart of their strategy. I am convinced that with such a good team and such good knowledge of the market and the industry, the company has huge impact potential.”
AltRaise acted as exclusive financial advisor to XpressGas on this transaction.
Media contacts
XpressGas
Winifred Appea
Investor Relations
wappea@xpressgas.com
I&P
Clémence Bourrin
PR and Communication Officer
c.bourrin@ietp.com
BIO
Ben Jehaes
Manager External Relations
ben.jehaes@bio-invest.be
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