BACK TO CHAPTERS
Deep DivePresence of OGS suppliers
OGS players are present across different markets, including ones with more complicated contexts. This provides a strong foundation for these suppliers to reach those who most need OGS for electrification.
Most markets in Sub-Saharan Africa are served by both large OGS companies and small domestic OGS companies
Presence of OGS companies in Sub-Saharan Africa, 2023
Large Companies
Small domestic companies
Both
Few markets in Sub-Saharan Africa are served exclusively by either large or small OGS companies; most are served by a mix of both, which is key to achieving universal basic energy access.The products of large companies are present in all but a few countries with active OGS markets—partly because many of these products are also sold through local distributors. Among the 34 countries where large company OGS products are available, only 44% have a vertically integrated large company presence, suggesting the majority of these products are distributed by local distributors. Countries with a mature OGS market typically have a strong presence of large companies – for instance, Kenya, Nigeria, Rwanda and Uganda have 5 or 6 large companies present. However, their presence is often limited to denser, more urban areas in most countries, particularly those with relatively nascent markets. This typically leaves the small domestic companies to provide last-mile distribution in rural areas. Furthermore, the presence of large companies does not always indicate a dynamic market. over 40% of the countries where large companies are present have just one or two of them– such as, Côte d’Ivoire, Ghana and Somalia. And in 43% of these countries, the sales volume of affiliate companies is minimal – under 10,000 annual sales.
Availability of OGS products in Sub-Saharan Africa, 2023
OGS companies are also generally present in countries with the largest unelectrified population and countries designated as FCV. OGS products have a solid presence in Ethiopia, Nigeria and Democratic Republic of Congo (DRC) for example. Each of those countries has at least eight last-mile distributors present - though due to data limitations, it is not clear if these distributors operate in specific FCV zones in these countries. In 2023, affiliate companies sold over 100,000 OGS products in Ethiopia and Nigeria, as well as in the more mature OGS markets in East Africa (Rwanda, Uganda, Kenya). Notably, affiliate sales of SHS alone – which provide basic energy access – also surpassed 100,000 in Rwanda, Uganda, and Kenya, supported by 48 local distributors across these countries.
Note – GDC members used as proxy for small companies and affiliate GOGLA for large companies