VidaGas: VillageReach – The Mozambican Foundation for Community Development Joint Venture Harvard Case Solution & Analysis

This case describes the evolution of the liquefied petroleum gas (LPG) distributor startup incubated by two not-for-profit NGO, to help improve the vaccine cold chain in northern Mozambique. These NGOs should be prepared to address whether and how to sell their part in the launch. VillageReach and Mozambique Foundation Community Development (FDC), and NGOs have been involved in national immunization programs in the expanded program on immunization (EPI), in northern Mozambique. The purpose of this program is to ensure a rapid and universal access to vaccines and other medical supplies. Previously, VillageReach realized that the program objectives may not be met if the cold storage (and transportation) vaccine has been guaranteed. Because electricity was scarce and unreliable in the region, VillageReach seek alternative solutions to support the cold storage. VillageReach, finally decided to use the LPG supply refrigerators, and, due to the lack of reliable sources of LPG in the region, FDC and VillageReach went to fund VidaGas, LPG distribution company. It soon became obvious that the effective distribution network of the CIS could provide benefits to the community above and beyond health: at the time, most businesses and households in the region, prepared with the use of biomass fuels. These fuels represent a significant threat to health, and to promote deforestation in the region. Although VidaGas can be considered a success, it has not yet reached break-even in its current operations. In addition, the new investment will be required to expand operations in neighboring provinces outside the province used for the pilot, Cabo Delgado. As the Ministry of Health (MoH), FDC and VillageReach will expand improvements in national immunization programs in these provinces, the availability of a reliable source of LPG will be important to achieve their goals. At the same time, resources VillageReach and FDC for further investment are limited.
Covered: Health, Supply Chain, developing countries, venture capital "Hide
by Noel Watson, Santiago Kraiselburd Source: Harvard Business School 25 pages. Publication Date: June 11, 2009. Prod. #: 609107-PDF-ENG

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