Fight malaria in Africa

In commemoration of Africa Malaria Day (April 25), we'd like to thank you for your past contribution to our bednet coupon initiative to make long-lasting insecticide-treated bednets available to the poor through market-based approaches. Your generosity has helped make an impact on the lives of thousands.

As of the end of the first quarter in 2007, A to Z Textile Mills had sold more than 70,000 nets through the subsidized coupon scheme—providing protection from malaria for five years for more than 134,000 people. As part of the program, A to Z launched eight separate distribution channels, including door-to-door saleswomen, street vendors, targeted corporations employing low-income workers, and rural outreach. This diversity allowed A to Z and Acumen Fund to study each channel and establish its potential for scaling up nationally. (You can read more about each of the distribution channels in my journal from my trip to Africa with representatives of google.org in December.)

We have learned a tremendous amount from experimenting in distribution, marketing and pricing for low-income customers. Analysis of A to Z’s direct expenses to date shows that this program’s overhead costs are about $1 per net. We believe the coupon scheme is a cost-effective alternative to a completely charitable model, with the potential to reach communities of people living on $1-2 per day, particularly if we can find a price point that people can afford, and a sustainable subsidy that can help us achieve that price point.

Thank you again for your support as we work to create real change in the lives of the poor by providing access to affordable, critical goods and services.

Kind regards,

Jacqueline Novogratz