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VidaGás: delivering better health to Northern Mozambique with LPG

Courtenay Sprague (Graduate School of Business Administration, University of the Witwatersrand, Parktown, South Africa)
Stu Woolman (Graduate School of Business Administration, University of the Witwatersrand, Parktown, South Africa)

Journal of Enterprising Communities: People and Places in the Global Economy

ISSN: 1750-6204

Article publication date: 29 March 2011

569

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

Citation

Sprague, C. and Woolman, S. (2011), "VidaGás: delivering better health to Northern Mozambique with LPG", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 5 No. 1, pp. 41-57. https://doi.org/10.1108/17506201111119590

Publisher

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Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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