Supply chain

Supply chain

PIDG companies can build local businesses and supplier networks into the construction and maintenance of infrastructure through locally sourced labour, goods and services.

In addition to the benefits of the resulting infrastructure itself, PIDG-supported projects can generate significant development impact in host communities and countries by creating local employment opportunities, promoting local enterprises, and developing capacity and resilience in local supply chains.

PIDG companies report on the providers, nature and value of their main supplies of goods and services. ‘Local content’, including the supply of core inputs such as fuel and labour as well as more specialised technical, operations and maintenance services, can have significant economic impact. International suppliers might bring with them advanced equipment, technical expertise, competence and quality standards. This can contribute to local enterprise and workforce development through capacity building and technology and skills transfer.

Sustainable supply chains: Gabon railways

PIDG-supported projects may also contribute to the development of supply chains more directly. Through its guarantee of the construction and upgrading of railway infrastructure servicing Gabon Special Economic Zone (GSEZ), GuarantCo is significantly improving transport logistics in the supply chain for timber. This will help to convert the local supply of timber into more processed, higher value products, encouraging value addition in the nascent local and regional wood industry.

GSEZ has been able to leverage its position along the supply chain to promote sustainable forest management and combat deforestation. It is committed to procuring timber on a sustainable basis across the entire supply chain process that meets the strict standards of the international certification companies, including the Forest Stewardship Council (FSC) and Bureau Veritas.

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