This post is a continuation in my series about Healthcare Delivery at the BOP. In my previous post, I highlighted examples of enterprises that make use of the franchising business model to provide healthcare to the poor. In this post, I will look at consumer products that help prevent respiratory diseases and malaria. As always, I encourage you to post your comments and questions.
Indoor Air Pollution
To address this problem, the Shell Foundation has committed US$ 10 million to tackle indoor air pollution through a new program called "Breathing Space." Shell’s approach is to identify, test and diffuse market-based solutions that provide a viable alternative to the high polluting biomass. Under this program supply- and demand-side interventions based on business and market principles are being piloted in eight developing countries.
One such solution that Shell is sponsoring is Project Gaia. The program seeks to create a model by which a household market for locally-produced alcohol-based fuels like ethanol and methanol can be developed on a commercially viable scale throughout developing countries. The initiative is being piloted in Ethiopia, where a thriving sugar cane industry can provide the biomass used to create the fuels. The project is also developing a CleanCook stove powered by the fuels.
What’s interesting about all of the models discussed is that they are affordable solutions that rely on local resources for their manufacturing and use. So in addition to the health benefits, the projects also create a number of sustainable local jobs relating to the production, selling, and servicing of the stoves. Also, with the exception of the Gaia project which is just now deploying its prototype stoves, each model seems to have traction, demonstrating the viability of providing such solutions on a for-profit basis. Finally, beyond the health and economic benefits the stoves bring, there are also the added environmental benefits of creating less pollution and using less biomass, a resource that is becoming increasingly scarce in some areas.
Anti-Malaria Bed Nets
Malaria is another disease responsible for more than one million deaths annually. The social and economic impacts are particularly devastating in Africa where 90% of deaths occur and poor children under the age of five are most at risk. Africa’s GDP is thought to be 32% lower than it would have been if malaria had been effectively controlled 35 years ago. While the race for a vaccine is on – GlaxoSmithKline recently said one could be licensed by 2010 – current prevention techniques are inadequate.
Another highly-effective and long-lasting insecticide-treated malaria bednet is being manufactured, produced and sold by for under $5 in east Africa. Tanzania-based A to Z, the largest privately help manufacturer of bednets in Africa, employs approximately 600 workers and currently produces 5 million bednets annually for distribution in Tanzania and other African countries. A to Z is also the lowest cost manufacturer in Africa due to an intense focus on innovation and productivity.
Both bednets are manufactured locally – PermaNet in Asia and A to Z in Africa – creating local jobs. Both products were also developed specifically for cash-poor consumers who require reliable long-term solutions. And like the cooking stove examples above, both companies demonstrate the viability of businesses that produce products for low-income communities, if such goods have a clear and demonstrated value to the consumer.
On Thursday, I will continue to discuss consumer products for disease protection, citing examples designed to improve nutrition and deal with water-borne illnesses.


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