A journey to the first link in global supply chains

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Promoting fair working conditions worldwide A journey to the first link in global supply chains

What we consume has a worldwide impact through global supply chains. The National Supply Chain Act has been in force for just under three months. Federal Minister for Economic Cooperation and Development Schulze and Federal Minister of Labour and Social Affairs Heil travelled to Africa to see for themselves how well it is being implemented on the ground.

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Svenja Schulze and Hubertus Heil during their visit to a textile factory in Accra. (More information available below the photo under ‚detailed description‘.)

Federal Minsters Schulze and Heil also talked with workers in a textile factory in Ghana.

Svenja Schulze (SPD, m), Federal Minister for Economic Cooperation and Development, and Hubertus Heil (SPD, r), Federal Minister for Labour and Social Affairs, visited the KAD textile factory. Federal Minister for Labour and Social Affairs Heil and Federal Minister for Economic Cooperation and Development Schulze visited Ghana and the Ivory Coast.

Photo: picture alliance/dpa

Europe and the Global South share close economic ties via global supply chains, which is why Federal Minister for Economic Cooperation and Development Svenja Schulze stated that: "We in Germany also share a responsibility to ensure that human rights and environmental standards are respected throughout the supply chains."

She and Federal Minister of Labour and Social Affairs Hubertus Heil travelled to Ghana and the Ivory Coast, where, between 80 and 90 per cent of the workforce – particularly young people – are employed in precarious jobs with low wages and poor working conditions. Child labour is also widespread.

The Corporate Due Diligence in Supply Chains Act came into force on 1 January 2023 and regulates corporate responsibility for ensuring that human rights and environmental protections are respected throughout global supply chains. The Federal Ministry of Labour and Social Affairs answers questions about the law.

In Accra, the capital of Ghana, the ministers visited a textile factory that also exports to Europe and paid a visit to one of the largest second-hand textile markets in the world. Ghana is among the largest net importers and Germany one of the main exporters of used textiles.

The cocoa supply chain is the focus of political talks in the Ivory Coast. The two ministers also visited a plantation and a cocoa cooperative. One in three workers in the Ivory Coast works in cocoa farming, but a large number of them live in poverty. Many children are also put to work on the plantations. At the same time, the cultivation of cocoa is a major cause of deforestation in the country.

Empowerment rather than withdrawal

Germany’s National Supply Chain Act is designed to help improve working and environmental conditions. The primary aim of the regulations is to help the people who form the first link of the supply chains, among which are many women and children. The purpose of Heil and Schulze's visit was to get an idea of how well the regulations are being implemented on the ground because, as Federal Minister of Labour and Social Affairs Heil explained: "Those who do business and make profits globally must also accept a global responsibility."

Rather than withdrawing from regions where standards are poor, the Federal Government wants to encourage businesses to work together with local producers to ensure that human rights and environmental standards are respected. It therefore provides support to companies and their suppliers in the joint implementation of the legal provisions of the National Supply Chain Act. To this end, the Federal Government has compiled a set of implementation aids.