Business / Companies
Econet acquires Redan Gas
14 Jun 2015 at 07:01hrs | Views
ECONET Wireless Zimbabwe (EWZ) has acquired Redan Gas in a deal that is expected to broaden its renewable energy portfolio.
Econet could neither confirm nor deny the transaction last week.
"As previously stated, the group is continuously exploring alternative energy options for the market such as solar energy and gas. As soon as there are material developments to report, we will update on progress on this initiative," said EWZ.
However, people familiar with the transaction said the telecommunications giant has decided to move in on the firm in order to expand its energy business.
"We have acquired Redan Gas as part of our energy business; we have targeted rural areas where we will be selling a two-plate gas stove that comes with a composite cylinder.
"The composite cylinder is different from the common gas tanks that are taken for re-filling.
"You just go to any Redan or Econet agent and exchange.
"There is huge business in LPG production throughout the world with it being produced from natural gas sources and crude oil refining.
"This means that LPG will be readily available for the foreseeable future and increased supply will result in lower prices and this drove Econet to venture into LPG business.
"We are going to keep the Redan brand," explained the source.
It is believed that Econet has more than 20 000 composite cylinders for its business. Most cylinders used in Zimbabwe are steel cylinders.
There is a gradual shift to renewable and alternative energy sources as power supplies continue to be erratic.
Statistics show that in 2014, the total LPG consumed in Zimbabwe rose to 9 138 tonnes.
Recently, Energy and Power Development Minister Dr Samuel Undenge said Government is pushing for the use LPG, especially for cooking, to lessen the burden on the power grid.
LPG is considered a cleaner form of energy for heating and cooking compared to paraffin and wood fuel.
Econet could neither confirm nor deny the transaction last week.
"As previously stated, the group is continuously exploring alternative energy options for the market such as solar energy and gas. As soon as there are material developments to report, we will update on progress on this initiative," said EWZ.
However, people familiar with the transaction said the telecommunications giant has decided to move in on the firm in order to expand its energy business.
"We have acquired Redan Gas as part of our energy business; we have targeted rural areas where we will be selling a two-plate gas stove that comes with a composite cylinder.
"The composite cylinder is different from the common gas tanks that are taken for re-filling.
"You just go to any Redan or Econet agent and exchange.
"This means that LPG will be readily available for the foreseeable future and increased supply will result in lower prices and this drove Econet to venture into LPG business.
"We are going to keep the Redan brand," explained the source.
It is believed that Econet has more than 20 000 composite cylinders for its business. Most cylinders used in Zimbabwe are steel cylinders.
There is a gradual shift to renewable and alternative energy sources as power supplies continue to be erratic.
Statistics show that in 2014, the total LPG consumed in Zimbabwe rose to 9 138 tonnes.
Recently, Energy and Power Development Minister Dr Samuel Undenge said Government is pushing for the use LPG, especially for cooking, to lessen the burden on the power grid.
LPG is considered a cleaner form of energy for heating and cooking compared to paraffin and wood fuel.
Source - sundaymail
