Professionalising the concrete value chain Because of the positive economic development in Burundi there is currently a great demand for new housing, offices, schools, hospitals and infrastructure and this demand rate will only get higher during the next decade.However, the current working method is outdated. If the construction industry does not modernise in Burundi, it will never achieve the scale and quality of operations necessary to fill the demand.According to the applicant Intercommerce B.V. the concrete value chain is a clear example: adequate supply of good quality concrete is important for Burundi's construction industry. One of the key raw materials for the construction industry is aggregate (gravel, shingle and pebbles of the right shape, size and material). In Burundi today this aggregate is being produced either by foreign companies temporarily importing the needed hardware and personnel to create the aggregate or on a smaller scale manually from wild nature and river beds. This brings problems not only in terms of health, safety and environment, but also causes problems for the entire value chain. With this way of working, it will never be possible to locally produce concrete of the required quality level as well as the required volume. Consequence will be unsafe constructions, loss of business opportunities and poor infrastructures. Besides a lack of knowledge transfer and creation of jobs for the local population.The two partners in this project wish to improve the concrete value chain in Burundi by introducing local professional aggregate production and technical assistance to users. Local professional aggregate production and the equipments used for it are completely new for Burundi. To reach this goal, the partners will establish a joint venture and recruit 72 new employees, provide training both to employees and to construction companies in the country (chain partners). After running a successful pilot, there are many opportunities for follow-up investments: both for up scaling the production and for upgrading the concrete and construction industry further in the value chain.Corporate Social Responsibility (CSR)Besides the general CSR policy as executed by the partners, the joint venture will also implement the following aspects in the project: all clients have to show their policy on working conditions, environment protection and abstinence of child labour and forced labour; a detailed health and safety programme will be developed; an extensive programme of fringe benefits to the employees will be implemented including a pension scheme, an 80% reimbursement of health expenses, free transport to and from work, if necessary temporary housing on location, a year-end bonus scheme, interest free credits for educational or family purposes, lunch expenses reimbursement, education (both for employees and for their family members) and HIV sensitisation.Furthermore, the joint venture will conduct an Environmental and Social Impact Assessment, which will be used to implement a sound environmental and social plan for the company. Measures will be taken to minimise the impact on the environment.Impact•	Employment and working conditionsThe joint venture will employ 72 people, which will be low (33), medium (30) to highly (9) skilled. Two years later a total of 112 people will be employed (low (53), medium (47) to highly (12) skilled. Employees will receive 15% above the local minimum wage. Furthermore, employees will be provided with:- pension scheme, free transport to and from work (also for their security) and if necessary temporary housing on location;- medical coverage of 80% of all medical expenses;- interest free credits for educational or family purposes (both for employees and for their family members);- a year-end bonus scheme, lunch expenses reimbursement and HIV sensitisation.During screening, the applicant has assured us that the highest level of safety measurements will be implemented within all activities of the joint venture.•	Innovation / Transfer of knowledgeThe project introduces and transfers technical skills and technologies that are new for the country, like aggregate and its use in the concrete industry and production knowledge, crushing and screening equipment, how to run an aggregates supply business and quality management.Due to this transfer of knowledge, the employees of the joint venture and the employees of the chain partners will acquire an enhanced knowledge level, which will give them a stronger position on the local and sub-regional labour market.•	Chain effectsThe project will have several chain effects. First of all it will affect suppliers and service providers of the joint venture; they will receive long term contracts with the joint venture. Secondly, buyers of the products will be able to improve their competitiveness because of the improved quality of supply of aggregate, which will increase their construction volume and their construction quality. Also, with higher quality aggregate the buyers will be able to enter the market of more complex construction works. Thirdly, initiators of new business further in the value chain will benefit as the joint venture will create a structure and a climate for more innovations and investments in new business e.g. for batching plants for ready mix concrete. Fourthly, the project will help Burundi to become less dependent on expensive imports and it will add value locally. This project will be the first step towards eliminating the practice where foreign contractors organise their own raw materials supply, without any benefit for the locals.Lastly, the maintenance and repair industry in Burundi will benefit due to the introduction of new technologies that need to be serviced locally. Because this service work is high level, this will upgrade the level of skills in the country which will result in a growth of the maintenance and repair industry.•	EnvironmentThe joint venture will conduct an Environmental and Social Impact Assessment, which will be used to implement a sound environmental and social plan for the company. Measures will be taken to minimise the impact on the environment.•	Position of womenThe impact of the project on the position of women is moderate, but positive. Although the construction sector is a men's world, and the raw materials supply business also, at least 15% of the newly created jobs in the joint venture will be for women. Of these female employees, 1 will work in a management function, 6 in professional staff (high- and medium-level) and two in lower non-technical support functions. Setting up a local professional aggregate production plant, which can produce 200,000 m3 aggregate per year, aiming at sales on the local construction market, which will upgrade the concrete value chain and eventually the construction industry in Burundi.