ETHIOPIA

NetMark
was active nationwide in Ethiopia from 2003 to 2006. The
targetedsubsidies program was focused in Amhara and Oromia regions.
NetMark
Partners included:
• EAI, Permanet® (began 2005)
• Petram, DawaPlus® and Wobalba™ (began 2006)
USAID Country Project
Budget: $4,291,000
Commercial Partners’ Investment: $2,498,961
ENABLING
ENVIRONMENT
NetMark project goals in Ethiopia were cut short by a shift in government
policy concerning free distribution of insecticide-treated nets (ITNs)
and importation bans on commercial nets enacted by the Drug Authority
Control Administration of the Federal Government of Ethiopia. Despite
these challenges, the discount-voucher subsidy program was successfully
established in Amhara and Oromia zones.
NetMark provided
advice to Ethiopian companies interested in production of nets and long-lasting
insecticidal nets (LLINs). A study tour for five companies was arranged
to a net stitching company in Kenya. A feasibility study for the production
of LLINs was carried out in collaboration with Adami-Tulu Pesticides,
the Federal Ministry of Health (FMOH), and the Tesfa-Ilg Foundation.
As part of its technical
support to help sustain and increase access of LLIN products in Ethiopia,
NetMark, on behalf of the USAID Mission, donated an AlphaImager EC system
to the Vector Control Unit of the Aklilu Lemma Institute of Pathobiology.
The institute will use the machine to conduct bio-efficacy testing on
insecticide-impregnated mosquito nets.
SUPPLY OF ITNs
Brands and Sales:
NetMark helped develop the retail market for ITNs in Ethiopia.A total
of 215,083 ITNs were sold by NetMark commercial partners in retail outlets
in Ethiopia while the project was there.
Retail Outlets/Accessibility:
During the project period of performance, NetMark’s formal partners
expanded their distribution outlets, creating over 81 new retailpoints.
Sales were mostly driven by the discount-voucher targeted subsidy program.
Although early programmatic gains were substantial in Ethiopia, by late
2006, the FMOH had scaled up free net distribution in all malarial areas.
The effort to cover ten million households with 20 million nets was
a huge undertaking by the Ministry and its National Malaria Control
Program (NMCP), and the NMCP has indeed seen some major successes since
the scale-up. However, the distribution of free ITNs was often untargeted
and unmonitored, which led to a significant number of nets being leaked
into major urban markets at prices significantly lower than commercial
nets. This resulted in reduced sales for NetMark’s partners and
a distortion of the commercial market. In addition to this, free nets
were also distributed in areas where the NetMark discount-voucher program
was operating. This led NetMark to close down its voucher programs too,
since women were receiving free nets at the community level.
Price:
In 2005 and 2006, NetMark commercial partners were successfully selling
ITNs in competition with leaked “free” nets. However, due
to the massive influx of free nets , by 2008 there was no longer any
commercial incentive to sell.
EQUITY VOUCHER PROGRAM AND FREE NETS
In 2005, NetMark launched its discount-voucher targeted subsidy program
in Amhara and Oromia regions. Over 62,000 vouchers were distributed,
and achieved a redemption rate of 79%. Before NetMark’s voucher
program started, ITNs in highly malarial areas (mostly peri-urban and
rural areas) were hard for people to obtain through the commercial sector.
But as the voucher program took off, so too did awareness and demand
for ITNs. However, as noted above, the intensified free net distribution
eventually cut into commercial sales so heavily that retailers participating
in the voucher program were no longer interested in buying or selling
nets.
