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Case Story Title

Growing Sustainable Business for Poverty Reduction: PATH Madagascar/ TOTAL

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Issues Addressed

  • Principle 7 - Businesses should support a precautionary approach to environmental challenges
  • Principle 8 - Undertake initiatives to promote greater environmental responsibility
  • Principle 10 - Businesses should work against all forms of corruption, including extortion and bribery

Case Story Category

Internalization Project

Countries of Impact


Case Description

According to the MDG 2001 Madagascar Report, the PATH initiative responds to identified socio-economical needs. It shall demonstrate that it is possible to develop -within the core business of a company - an economic project, located in one of the least developed countries, in the respect of the Global Compact Principles and within the framework of the Millennium Development Goals. The project PATH is dedicated to the improvement of hydrocarbons transportation by of road in Madagascar. The goals were to increase the safety of these transports, by mobilizing the local entrepreneurs, the authorities and partnering with the civil society organisations. The benefits for Total were to reach its safety standards, to create a strong pole of locals SMEs for these operations and to ensure a reliable, well treated and trained population of truck drivers within these operating companies. Three main objectives were listed :

to increase the managerial capacities of the local entrepreneurs;
to provide a good training and knowledge to the drivers;
to modernise the maintenance and the acquisition of the material.

The indicators used are the numbers of people trained, the number of training hours, the amount of loans attributed for the maintenance and the renewal of the material.The project started in 2003 and will finish at the end of 2005. The management of the project will then be transferred to a local structure. What actions were taken by the company? What actions were taken by the company's partners? Total created, inside its Madagascan subsidiary a dedicated structure for the implementation of the project. An Executive Committee representing all the stakeholders of the project was organised every six months in order to monitor and to advise the implementation.The project was financed by Total and a contribution was demanded to the transport companies. The global costs of the project is estimated to 350 000 $.56 conventions with SMES were signed and 93 managers have been trained, 1153 technical workers (drivers, assistant drivers, logisticians..) have been trained, including 160 police officers. The Office of Transport of Madagascar is preparing a regulation for the transport of dangerous products. The PATH program could be extended to all the types of these transports. Integration of a training module about drivers, communities and HIV. Commitment of the banking sector for financing proposals with reduced interest rate (with the support of Total Regional Development Division). Program for training of the communities living along the main roads. Financial help of UNDP examined for the NGO Voarisoa in charge of the training and information of the communities. The PATH project shows that a partnership is successful and sustainable when it meets real and acknowledged needs, and aligned with public policy.


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