Following its investment in Burkina Faso’s leading LPG distributor Sodigaz APC in 2017, Amethis has just sold its 22% stake in the company to African Infrastructure Investment Managers (AIIM).
Over the years, Sodigaz has built a 60% market share of Burkina Faso’s LPG distribution market and currently relies on a network of 2,200 gas resellers. Since its beginning in 1977, the company has grown to a 780-employee structure known for its commitment to gender equality.
The entry of AIIM into Sodigaz’ capital takes place as West Africa’s LPG market experiences significant growth. As a result, the company has recorded an annual growth rate of over 14% over the past four years and expanded into neighbouring countries such as Benin.
As West Africa’s middle class expands and governments seek to fight deforestation and promote public health, the demand for a clean cooking fuel such as LPG is on the rise. This is a trend that applies to the rest of the region and is increasingly generating the interest of investors, especially private equity players. Earlier this year for instance, Investisseurs & Partenaires’ fund I&P Afrique Entrepreneurs 2 made a $3m equity investment in XpressGas, Ghana’s fastest growing LPG distributor.