Two phases of a pilot scheme to supply LPG in the Nyarugusu refugee camp in 2017, and follow up research conducted by UNEP DTU Partnership, reveal a strong desire and willingness to pay (WTP) among refugee households for LPG as an alternative to traditional biomass for cooking. This reflects the relatively high financial and non-financial costs of woodfuel and charcoal use in the camp, which in turn is a function of the size and profile of the camp. Where there is a
willingness to pay (WTP) for any given good or service, but where the market is constrained in meeting this demand (such as in a refugee camp), there is a need for an intervention to create a market. This market creation plan is the outcome of various discussions with key stakeholders which took place between November 2017 and January 2018, the full list is presented in section 7. It intends to give a clear picture of the opportunities and challenges, along with the different options available to developing a market for LPG in the Kigoma region. The aims and intended outcomes of the LPG market creation programme support the Tanzanian government’s ambition to scale up the use of LPG across the nation. In the context of the refugee camps in Kigoma, it also addresses the GoT’s aim to help reduce deforestation and conflict risk with the local communities surrounding the camps. It is also aligned with UNHCR’s protection remit and with the emerging global framework of actions to supply clean, sustainable and affordable energy for displaced people, as part of global efforts to deliver on SDG7. Following comments and feedback provided by the UNHCR, a shorter concept note will be developed, targeted at funding agencies and donors.
