VidaGás: delivering better health to Northern Mozambique with LPG

Courtenay Sprague and Stu Woolman

Journal of Enterprising Communities: People and Places in the Global Economy, 2011, vol. 5, issue 1, 41-57

Abstract: Purpose - The purpose of this paper is to document the manner in which a pro‐poor company can deliver ongoing health benefits and improve environmental sustainability in a manner that addresses child and maternal mortality (in line with millennium development goals 4, 5 and 7). Design/methodology/approach - Field research in Mozambique including 12 in‐depth interviews with key personnel from December 2006 to January 2007. Findings - First, clear threats to the success of VidaGás' pro‐poor business model encompass insufficient liquefied petroleum gas (LPG) supply and storage facilities; poor industrial and commercial infrastructure in Northern Mozambique; inadequate training of retailers in LPG use; and inadequate consumer knowledge of the benefits of LPG. Second, key innovations employed by VidaGás to overcome these obstacles consist of the introduction of a novel cold chain to safeguard medicines; a complex supply chain to ensure timely delivery; and the exploitation of local knowledge and expertise to expand the uptake of LPG by Mozambicans. Practical implications - The case study focuses on a business problem with significant development implications. The challenge is to ensure a reliable supply of LPG in Northern Mozambique. To meet this challenge, VidaGás must achieve its stated goal of becoming a revenue‐generating entity within three years. In order to create a viable market for LPG, VidaGás must not only increase the uptake of LPG by poor consumers, it must expand LPG market access to commercial consumers, while raising additional capital. Originality/value - The paper contributes to the literature on social entrepreneurship and demonstrates how to link for‐profit business imperatives with development goals.

Keywords: Mozambique; Liquefied petroleum gas; Energy sources; Healthcare (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jecpps:v:5:y:2011:i:1:p:41-57

DOI: 10.1108/17506201111119590

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