AVAD Enterprises Company Limited

When Lilian David Makibinga founded AVAD Enterprises Company Limited in 2021, her vision was to make clean cooking energy accessible to more households and to create economic opportunities for underserved communities. What began as a small LPG distribution business has since grown into one of the leading gas distribution companies serving the Kilimanjaro and Arusha regions of Tanzania.

Before becoming an entrepreneur, Lilian worked in the marketing department at Oryx Gas. Through her interactions with customers, she witnessed firsthand the challenges many households faced in accessing LPG and saw an opportunity.

“As I engaged with customers every day, I understood their struggles in accessing gas services. I realized there was a gap in the market, and I decided to transform that challenge into a business opportunity,” she says. Driven by this vision, Lilian made the bold decision to leave her job and establish her own LPG distribution business. Her determination and understanding of customer needs soon began to pay off.

Within two years of its operation, AVAD was appointed as Oryx Gas’ main distributor for the Kilimanjaro and Arusha regions, marking a major milestone in the company’s growth. AVAD distributes LPG for household use through an extensive network of dealers and sub-dealers. The company’s strategy has been to bring services closer to customers, ensuring that both urban and rural households have access to reliable and affordable clean energy.

However, reaching rural communities presented significant challenges. The cost of distribution was high, customer numbers were low, and many small entrepreneurs, particularly women and youth, lacked the capital needed to participate in the LPG business.

This is where the partnership between AVAD and the Africa Enterprise Challenge Fund (AECF) became transformational. Through the collaboration, AVAD expanded LPG distribution to remote communities while empowering small-scale entrepreneurs to establish their own gas businesses. One of the greatest barriers facing aspiring entrepreneurs was access to startup capital. AECF helped address this challenge by supporting entrepreneurs, while AVAD strengthened its own investment to expand services and grow its distribution network.

“The partnership with AECF enabled us to bring gas services closer to rural communities while supporting women and youth entrepreneurs who lacked the capital to start their own businesses,” Lilian explains. As a result, LPG adoption in rural areas increased significantly. AVAD expanded its service coverage by approximately 40 percent, while sales grew from 200 metric tons to 250 metric tons of gas. “This growth would not have been possible without AECF’s support,” she says.

One of AVAD’s most notable achievements has been its focus on empowering women entrepreneurs.

Initially, attracting women into the LPG business was challenging. Many lacked startup capital, while others faced social barriers that discouraged them from entering a sector traditionally viewed as male-dominated.

To overcome this challenge, AVAD partnered with community-based Village Savings and Loan Associations (VICOBA). Through these groups, women were supported and given access to LPG cylinders, enabling them to establish small businesses and repay their investments through manageable monthly payments.

“VICOBA became a powerful platform for helping women enter the LPG business and build sustainable livelihoods,” says Lilian.

The establishment of local Points of Sale (POS) further improved access to LPG. These centers not only sell gas but also provide customer support, safety education, business guidance, pricing information, and home delivery services. “There were people who questioned why a woman would choose to run a gas business instead of staying at home,” Lilian recalls. “Many men did not believe women could succeed in this industry.”

She also encountered hurdles accessing financing, as some financial institutions doubted women’s ability to manage loans successfully. Additionally, broader structural challenges, including limited opportunities for women to own land and other productive assets, often restrict women’s ability to secure collateral to grow their businesses.

Today, AVAD employs eight women across various departments, including marketing and customer service, demonstrating her commitment to creating opportunities for other women in the industry.

In the early years, convincing people to switch from traditional cooking fuels to LPG was quite an uphill task. Many households had misconceptions about gas safety. AVAD responded by investing heavily in community education, training people on the safe use of LPG and dispelling myths surrounding gas explosions and other safety concerns.

Since the partnership with AECF began, LPG adoption in rural communities has increased significantly. Women now spend less time preparing meals and no longer need to collect firewood. Families are benefiting from cleaner kitchens, healthier living conditions, and lower medical expenses associated with smoke-related illnesses. “Women are now safer and healthier because they no longer rely on firewood,” Lilian says. “The respiratory and eye problems caused by smoke have reduced greatly.”

The benefits are being felt across generations.

For Lilian, the partnership between AVAD and AECF has been a driver of growth, inclusion, and social transformation.