OVERVIEW

NetMark's Role

In trying to develop sustainable commercial markets for ITNs in partnership with international net and insecticide manufacturers and their African distributors, NetMark encountered many supply bottlenecks and identified smaller African manufacturers who were struggling to grow their net business. To help address these problems, NetMark launched an initiative to help African manufacturers increase the quantity, quality, and variety of nets they produced by providing technical assistance on net production; linking manufacturers with insecticide producers and net distributors; supporting new brands and markets; and facilitating the transfer of LLIN technologies where feasible.

Background

Africa needs tens of millions of ITNs every year, and demand for LLINs has overwhelmed supply. Many of the nets now in use are from Asia (Thailand, Vietnam, China). While a few large African net makers do well in the current market, many of the smaller African net producers are under pressure from various directions:

      • cheaper imports from large companies working at higher economies of scale
      • untargeted free and subsidized ITN programs using imported products that reduce
        their market
      • inability to compete with major firms for large tender bids
      • lack of links with insecticide manufacturers
      • reluctance or inability to market their own brands of ITNs
      • taxes and tariffs on the polyester chips, yarn, and netting used to make nets
      • lack of access to new ITN technologies like long-lasting nets (LLINs).

African manufacturers can play an important role if they can adapt to the conditions of the current market and find their niche. While their production capacities may be limited, they are closer to country needs and net distributors and can supply regular amounts of nets that meet the financial needs of local distributors better than imported nets. They can better understand local and regional markets and produce the types of nets that people prefer. They could form local or regional alliances with distributors and insecticide companies that could provide them with steady orders and access to new technologies. NetMark is committed to helping them build their capacity and realize their potential.

NetMark Activities

Since 2003, NetMark has been working to support and expand African net manufacturing through five major streams of activities;

1. Improving Manufacturing Quality and Efficiency: NetMark has added textile experts to its core team and provided confidential assessments for African manufacturers through factory visits by textile experts. Immediate changes are made on the factory floor and
comprehensive recommendations on improving quality control to international levels are provided. NetMark held a workshop on Quality Control for 10 manufacturers in Sept. 2004 and prepared a handbook on QC that is on its website.

2. Expanding links to Insecticide Manufacturers and Distributors: NetMark has helped link African manufacturers to sources of yarn and insecticide kits and helped several companies launch their own brands of ITNs. It has served as a forum for information to link
companies selling ITNs to new suppliers of nets and insecticide. In bringing African net manufacturers together for technical meetings, NetMark stimulated the creation of the African Net Manufacturers’ Association which is now being set up by 10 companies.

3. Helping Local Net Stitchers Produce and Market Quality ITNs: Recognizing that local stitchers are a major source of nets for many people. In Nigeria, for example, local stitchers produce at least 4 million nets/year compared to 1.3 million produced by textile
manufacturers. NetMark has provided targeted support to stitcher associations and is helping stitcher groups find sources of netting and insecticide kits meeting WHO specifications.

4. Creating Local Net Production Capacity: Many countries would like to develop their own net production capacity, however, net manufacturing requires millions of dollars in investment in an area of high competition and low margins. For countries with a sizable local market, net stitching can be a way of developing local net production and employment while providing a product meeting local market needs. NetMark is helping companies decide if they should invest in a full manufacturing facility or start with local stitching capacity.

5. LLIN Technology Transfer: The high demand for LLINs by donors and ministries of health has led to delays of 6-12 months in obtaining LLINs from the two companies making them. NetMark embarked on a two-pronged effort to increase access to LLINs by:

1) working with Bayer and Siamdutch to develop a mechanized process for the LLIN treatment of finished nets that could use any of the WHOPES-recommended insecticides; and 2) educating African manufacturers on current and upcoming LLIN technologies and linking them to the companies that might share these technologies. In September 2004, NetMark sponsored 10 companies to attend the LLIN Conference in South Africa; and a year later NetMark held an LLIN Technical Meeting in Nairobi that brought together 29 companies involved in net and insecticide production and public sector groups that are the major purchasers of LLINs. NetMark is also helping companies explore financing options for new technology adoption and the most affordable options for creating an LLIN product.

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