There have been some issues at the distributor level. The distributors represent Sodigaz to the end consumer. There have been some reports of bad customer service on the part of the distributors and some mismanagement of the payments. There is enough demand that Sodigaz can select only the top distributors and eliminate those that are causing issues. This requires some type of screening process and also occasionally monitoring.
There are future risks that Sodigaz has to keep in mind as well. The major one is the supply of LPG. There are already shortages throughout the region and demand continues to grow. Mali is dependent on surrounding countries to import LPG into their ports. These countries may, in the event of a shortage, prioritize incoming gas for domestic use and even prohibit exports until the shortage is over. In addition, conflicts in the port countries could disrupt supply. This happened during the conflict in Cote d'Ivoire. Sodigaz currently has relationships with 4 different LPG importers, which minimizes their risk to such events. They should maintain these various relationships.
Another risk is related to the government subsidy. The subsidy plays major role in dictating the market of LPG. Sodigaz needs to make sure to keep the government aware of the impact of their actions as much as possible, which they are doing through the Professional Group. This relates not only to the amount and time span of the subsidy, but also the timely payment of the subsidy to the enterprise. If not, much of Sodigaz's working capital is tied up waiting for subsidies, which limits the amount of gas they can purchase.
The staff expressed some dissatisfaction with their salaries. Both the Malifolkecenter and the staff themselves saw the team spirit of the staff as one of the major strengths. On the other hand, the head entrepreneur ranked the staff as one of his least important stakeholders. It is difficult to tell who is right, but the low salaries reflect the entrepreneur's perception of the staff and they are beginning to notice. If the staff truly is one of the strengths, then as they move into better paying organizations, Sodigaz will face some internal issues.
Due to the type of product Sodigaz sells, fire is a major risk. The gas is extremely flammable, especially when stored in high quantities. This could cause an explosion, death, destruction of equipment and/or loss of gas stock. Safety is thus very important. In the staff surveys, the general opinion was that there was a good level of safety. The entrepreneur should be sure to continue this high level of safety and perhaps have annual safety trainings.


