Harbour with containers

Focus topic: SUSTAINABLE SUPPLY CHAINSTowards more sustainable production worldwide

For a growing number of consumers, the social and environmental sustainability of products is of central importance. At the same time, regulatory requirements on sustainability are becoming more stringent – for example, regarding the import of raw materials and primary goods into the EU or as a result of new reporting obligations.

Companies operating internationally face the challenge of making their globally interconnected supply chains even more transparent, enabling suppliers in developing countries and emerging economies to comply with international standards, and actively managing risks that have risen sharply in recent times. Due to the new geoeconomic situation, this increasingly requires supply chain structures to be set up in countries where companies have not previously operated.

At the same time, these business challenges offer significant opportunities to bring about a sustainable improvement in the living and working conditions of people in the Global South. Through the develoPPP funding programme, the German Federal Ministry for Economic Cooperation and Development (BMZ) provides targeted support for business initiatives that improve social and environmental sustainability in supply chains.

  • Environmentally friendly production
    The use of obsolete technologies in production processes, a lack of awareness about the eco-friendly management of natural resources, or the threat of loss of income during the transition to more environmentally friendly methods constitute considerable obstacles to environmental sustainability among local supplier businesses. Projects funded through develoPPP address these issues, for example, by providing training on the sustainable use of farmland, introducing low-emission technologies in production facilities, or diversifying sources of income.
  • Social standards and working conditions
    Fair wages, a safe working environment, reliable protection against health and social risks, and equal rights for women and minorities: these are all essential elements of socially sustainable business. To address these aspects, develoPPP can provide support for awareness-raising measures among management personnel at local suppliers, further training for employees or the development of local healthcare services. Certifications in accordance with international standards can help improve employees’ incomes by making local companies more competitive on the international stage.
  • Transparency, traceability and certification
    The more product components that are sourced and the more actors involved in the local value chain, the more difficult it is to seamlessly trace a product’s manufacturing process. Yet this is often a prerequisite for marketing a product as sustainable in the EU and thus generating higher incomes. Preparing for certification or providing support for the introduction of innovative solutions to improve traceability are therefore further approaches being pursued within the framework of develoPPP projects.
Farmers inspecting seedlings (Côte d’Ivoire)

CÔTE D'IVOIRE: German trading company and DEG Impulse ensure a transparent and sustainable cocoa supply chain

Albrecht & Dill GmbH, Germany’s leading cocoa trading company, is developing a climate-friendly and inclusive value chain as part of a develoPPP project with DEG Impulse gGmbH. For example, to improve the management of natural resources, over 2,500 smallholder farmers in three regions were trained in climate-smart farming methods in collaboration with local partners. Women and young people, in particular, also received training on sustainable financial practices. Digital traceability tools ensure transparency throughout the supply chain. In this way, the project partners are boosting incomes, creating jobs and making the cocoa supply chain sustainable overall.

KENYA: German ornamental plant producer and DEG Impulse strengthen responsible greenhouse production

The German Selecta one Group, in collaboration with DEG Impulse gGmbH, is strengthening its supply chain in Kenya. As part of a develoPPP project, the subsidiary Selecta Kenya is implementing training programmes for sustainable greenhouse production with the aim of ensuring high product quality and sustainability throughout the entire value chain.  Over 1,000 skilled jobs with fair working conditions are created by establishing new production and training facilities in the Kenyan highlands, introducing practical study modules and targeted training of trainers. In addition, employees and their families are given access to free medical care.

Farmer shows coffee cherries (Kenya)

KENYA: German-Kenyan start-up and DEG Impulse scale up digital solution for transparent agricultural supply chains

With support from DEG Impulse gGmbH via develoPPP Ventures, the German-Kenyan company eProd has developed a platform that helps agricultural businesses manage their supply chains efficiently and transparently. The ERP software manages the registration and payment of smallholder farmers, integrates financial service providers and enables traceability from seed to end product – a crucial requirement for international markets. Digital IDs secure transactions and facilitate access to credit. In addition, eProd offers (e-)Extension Services, training, monitoring for certifications and a communication module for cost-effective, targeted interaction. In this way, eProd strengthens transparency, trust, income and market integration.

Women stand in front of a factory hall holding Fair Trade signs (India)

INDIA: German clothing manufacturer and GIZ certify first textile supply chain under the Fairtrade textiles standard

In a joint pilot project, the German clothing manufacturer Brands Fashion GmbH and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH have, for the first time, certified an entire textile supply chain – from fibre production to dyeing and weaving through to garment manufacturing – in accordance with the Fairtrade textile standard. In addition to environmental considerations, certification also extends to workplace safety, employee co-determination and the introduction of a living wage. The first products labelled with the Fairtrade textiles standard for the entire supply chain have been on the market since October 2021.

Farmer harvests natural rubber in the forest (Indonesia)

INDONESIA: German mobility supplier and GIZ make rubber supply chain digitally traceable

In the past, one of the factors that made it difficult to trace the rubber supply chain in its entirety in Indonesia was the large number of intermediaries. As part of a joint project, the mobility supplier Continental AG and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH have established a digital traceability system that tracks the flow of goods along the entire supply chain. By involving local processing facilities and enabling smallholder farmers to market their produce directly, structures have been created that ensure greater transparency. At the same time, smallholder farmers benefit from increased productivity and higher income levels.

Field worker carries baskets on his shoulder (Madagascar)

MADAGASCAR: International consortium of companies, NGO and GIZ improve production conditions in the vanilla sector

The German manufacturer of flavours and fragrances Symrise AG and the consumer goods manufacturer Unilever PLC have been collaborating with the NGO Save the Children (STC) on several projects with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH since 2014 in a bid to improve cropping and working conditions along the vanilla supply chain. Smallholder farmers are trained in sustainable growing methods, for example, in order to raise the yield and quality of vanilla and diversify their sources of income. Moreover, some 5,000 families are benefiting from a project-backed health insurance scheme. Further support includes awareness-raising campaigns on health, hygiene, nutrition and child welfare.

Two people in a warehouse

develoPPP Classic

develoPPP Classic is aimed at 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.

Young empoyees in a discussion during a business meeting

develoPPP Ventures

develoPPP Ventures is aimed at young companies with an innovative business model that are active in a developing or emerging country and are ready to take the next step. Within the framework of a matching funds model, a public early-stage investment of 100,000 euros is possible.

Hans-Joachim Hebgen
Hans-Joachim Hebgen Agency for Business & Economic Development
[Translate to EN:] Ann-Kathrin Hentschel
Ann-Kathrin Hentschel Agency for Business & Economic Development
Daniel Thomann
Daniel Thomann Head of Programme DEG Impulse gGmbH
Anja Meinecke
Anja Meinecke Head of Programme Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Jonas Naguib
Jonas Naguib Head of Programme Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH