A significant proportion of Africans are unable to purchase nets at commercial prices. NetMark believes that donors, government, NGOs and the commercial sector need to collaborate to ensure that cost is never a barrier to net use by developing targeted subsidy programs that reach the vulnerable without jeopardizing the establishment of sustainable local distribution capacity.

Many programs distribute subsidized public health products without ensuring they reach the poorest people or those at a high risk for contracting a disease. Well-intentioned but untargeted subsidy programs can (1) waste money and limit public health impact by providing a subsidy to someone who does not need it, (2) drain scarce financial and human resources by having the public sector purchase, distribute, stock, and sell the product, and (3) discourage the commercial sector from marketing a high-quality and sustainable product supply.

The benefits of using a targeted subsidy approach include:

• High-risk populations can be specifically targeted.
• The commercial sector bears the logistical burden of procurement, storage, distribution and sales.
• The public sector can focus on the delivery of quality health care and prevention services.
• Beneficiaries can select the product they like and can afford at subsidized price in a nearby retail outlet.
• The commercial sector is supported for a durable and extensive local supply
• Untargeted free or subsidized products don't flood the market.

The Voucher Approach

Using a voucher-based approach to targeted subsidies ensures minimal product leakage.