VidaGas commits to expanding its distribution of propane beyond servicing Ministry of Health (MoH) clinics to include local businesses and households. The plan calls for accelerating VidaGas' second phase expansion in Nampula province and building upon its existing distribution network in the neighboring province of Cabo Delgado. The commitment aims ultimately to create a third-party retailing network throughout Nampula, Niassa, and Zambezia provinces.
VidaGas will reliably supply and service business and household customers with propane throughout the Nampula, Niassa, and Zambezia provinces of Mozambique. Furthermore, VidaGas commits to build a robust distribution infrastructure in Nampula, VidaGas commits to building a second propane filling plant in Nampula similar to its plant in Cabo Delgado. The Nampula plant will need to be scaled up rapidly to handle the potential demand by businesses and households in Nampula, which has 3.5 million residents.
VidaGas is a for-profit propane distribution company established in 2002 by two nonprofit organizations, US-based VillageReach and Mozambique-based Foundation for Community Development (FDC). All VidaGas profits will be reinvested into VillageReach's health care programs in northern Mozambique, increasing long-term sustainability.VidaGas provides energy services to the Ministry of Health by ensuring the reliable supply of propane to rural clinics and other health facilities. The propane is used to run refrigerators to store vaccines, sterilize medical equipment, and provide lighting for nighttime medical procedures, birthing in particular.
In addition to its health mission, VidaGas has a broader development mission of supporting economic and environmental development. In Cabo Delgado, VidaGas is the largest supplier of cooking fuel (propane) to restaurants, hotels, and companies that maintain onsite kitchens for staff. VidaGas replaces wood- and charcoal-burning cooking equipment with efficient and clean burning propane stoves. VidaGas is also bringing the benefits of propane to households. Through a project with USAID's Urban Energy Program, VidaGas is developing sales, marketing, and micro-financing programs aimed at households. Switching households to propane has two benefits. It eases pressure on environmentally important mangroves rapidly being cut down for cooking fuel, and it improves the health of women and children, who suffer disproportionately from respiratory disease and vision impairment resulting from exposure to cooking smoke.
SEEKING: VidaGas is seeking investors to support its complete expansion into Nampula province. With the Ministry of Health as its anchor client there, it is the monthly propane supplier for over 100 clinics, and the number is growing.