Africa’s Net Producer Faces Competition from Asia

By Henry Neondo

Competition for long-lasting insecticide treated bed nets, seen by the World Health Organisation as key in the fight against Malaria, a leading killer disease of African children under five years of age and pregnant women, could jeopardize local production in the northern Tanzania town of Arusha.

One of the largest sources of bed nets for Africa, and the largest manufacturer in Africa itself, A to Z Textiles of Tanzania cost-effectively produces tens of millions high-quality Long Lasting Insecticide Nets (LLINs) where malaria is most endemic, and the World Health Organization certifies its product.

Local funding, economies of scale, technology transfer, and partnerships all played important roles in A to Z's success, as did perceived benefits of local employment and capacity-building.  Regulatory issues and procurement rules were barriers.

But competition from Asia and the looming plateau in demand for LLINs, competition from LLINs from Asia, and the entry of more African LLIN manufacturers with questionable quality assurance could jeopardize its success, which is viewed by the Roll Back Malaria as important in the realization of its goal--- of 100 per cent of households in malaria endemic countries in Africa owning an insecticide-treated mosquito net (ITN) by the end of 2010.

The company's success was achieved without tariffs or other protectionist measures. Many such opportunities have been documented in the African context, such as manufacturing common medical supplies.

"Ultimately, success is enabled by responsiveness to opportunities, willingness to invest and take risks, ability to execute, and strong leadership," the authors say.  "A to Z and its partners have not only successfully created an African source for public health goods, but have demonstrated tremendous commitment to the endeavour."

"All suggest the need for continued innovation to stay in business," says an official from the company.