The challenge
For tea companies that source their tea directly from plantations and smallholder farms, reliable supply chains and social peace within the farms are elementary in order to be able to promote the economic development of the tea sector. In addition, there is an increased interest on the part of consumers in social standards within the supply chain, which the companies want to meet. The ETP implements initiatives to improve the living conditions of people working in the tea industry. In Malawi and Rwanda, wages and incomes in the tea sector are usually insufficient for workers and smallholder farmers to meet their basic needs, such as sufficient food and drinking water, health care, and schooling. There is a lack of social protection and women are particularly disadvantaged.
Project approach
In order to reduce the income gap between actual income and a living wage, the project partners implemented the following measures, among others, with a budget of almost 1.5 million euros from 2015 to 2018:
- Development of reference values for the level of wages and income in Malawi to ensure the minimum subsistence level.
- Development of teaching materials to be used in Farmer Field Schools.
- Five-day Farmer Business Schools on business skills for smallholder farmers.
- Training of 1,200 farmers as trainers for Farmer Field Schools in Malawi.
- Support the establishment of Village Savings & Loan Associations (VSLAs) that promote income diversification and income-enhancing reinvestment of assets.
- Recommendations for women's empowerment on three tea estates in Rwanda and development of gender-based action plans.
GIZ and ETP jointly implemented most of the project activities. However, the implementation of the trainings was primarily the responsibility of ETP, while GIZ took the lead in setting the reference values for wages and income in Malawi.
The people who work on tea plantations or grow tea on smallholder farms are a fundamental part of our supply chain. Our business depends critically on their work. We must therefore ensure that their incomes and wages can support their livelihoods.
Results
The project contributed to a steady and significant increase in real wages in the Malawian tea sector. In Rwanda, the project created the conditions for those working in tea cultivation to increase their incomes in the medium term.
- Smallholder farms increased their tea production and diversified their income base
- In Malawi, a collective agreement for the tea industry was negotiated for the first time in 2016
- Workers' and farmers' organisations were empowered to negotiate higher wages and better working conditions with tea associations
develoPPP Classic
develoPPP Classic is aimed at medium-sized and large companies that want to invest sustainably in a developing or emerging country and expand their operational activities locally. Suitable projects receive technical and financial support of up to two million euros in public funding.
Project partners
