Creation of social businesses to fill critical infrastructure gaps is a fundamental part of VillageReach’s model. VidaGas is VillageReach’s pilot social business program that fills the requirement for safe, clean, affordable energy with broad market appeal. In 2002, VillageReach and its local partner, Mozambique Foundation for Community Development (FDC), established VidaGas to provide critical propane fuel services to rural health centers operated by the Mozambique Ministry of Health. Before VidaGas, health centers relied on dangerous, outdated and inefficient kerosene-burning refrigerators and lamps that required constant maintenance and failed frequently. Propane-fueled refrigerators, lamps and stoves enable vital health services including child vaccinations, childbirth, emergency surgeries, and the sterilization of medical equipment.
VidaGas Results:
- Largest volume propane provider in northern Mozambique with an annual delivery of approximately 300 tons
- Supplies more than 260 remote health centers supporting a population of approximately 5 million
- A reliable and profitable market supplier, reaching an expanding customer base of households and businesses including hospitality, tourism and light industry
- Recognized by the World Bank Development Marketplace and UNDP World Business Award
VidaGas built its customer base from its anchor customer, the Ministry of Health. Local businesses including the hospitality, tourism, and restaurant sectors were eager to switch from charcoal to propane but were concerned about supply reliability from existing retailers. Unlike its competitors, VidaGas built a filling plant in northern Mozambique to receive bulk shipments of propane, lower prices, and improve supply reliability. VidaGas is also unique in its provision of value-added services, such as equipment procurement and installation and ongoing after-sales support such as spare parts, maintenance and repairs. By working first with the Ministry of Health, VidaGas positioned itself to meet the stringent requirements of its other customers. Strong demand from the health system and businesses enables VidaGas to offer low prices and consumer finance to households.
