View of a large open-cast phosphate mine in Togo.
Developing countries such as Togo have an abundance of natural resources. The SDC is committed to ensuring that these are exploited fairly © Alexandra Pugachevsky

Exploiting natural resources is crucial to the economies of many developing countries and Swiss companies play a key role in commodities trading. Natural resources can be used to alleviate traditional forms of poverty, but many countries fail to take this step. The SDC aims to address this problem. 

The commodities sector is becoming increasingly important in developing countries. According to a 2016 report by the United Nations Conference on Trade and Development (UNCTAD), 91 developing countries in 2015 were dependent on commodities, where commodity exports accounted for more than 60% of a country's total merchandise exports. The World Bank also estimates that Africa alone is home to about 30% of the world's mineral reserves. Certain minerals, such as cobalt and tantalum, which are used extensively in electronic products, mainly come from fragile countries. 

With the expansion of 'clean' industries and technologies, the demand for minerals is set to increase, generating significant investment in exploration and developing new mines.

The various backgrounds and roles of the stakeholders involved have been debated for years by the academic community, international development policy committees, governments and civil society. The macroeconomic effects of exploiting natural resources and the factors causing price volatility have also been assessed. Attention has also been focused on extraction practices that cause damage to health and the environment, exploitative working conditions and conflicts over access to natural resources, which have the potential to unleash violence or even armed conflict.

Issues relating to financial flows from commodities trading are also the subject of intense debate. In general, funds that have been acquired illegally, or in questionable circumstances, and are transferred abroad present a major obstacle to economic growth and good governance in developing countries. There is broad consensus that illicit outflows from developing countries exceed the value of official development assistance many times over. A high percentage of these financial flows are attributable to commodities production and trading.

Switzerland is a key player in the commodities trading sector. It is estimated that more than 3 billion tonnes of commodities, calculated at over CHF 960 billion, are traded in Switzerland each year. In a report entitled 'The Swiss commodities sector: current situation and outlook' published in November 2018, the Federal Council states that it expects all companies operating in or out of Switzerland to demonstrate integrity and responsible conduct with regard to respect for human rights as well as environmental and social standards, both within Switzerland and abroad. The Federal Council also states that this applies to the entire value chain and is especially important for companies that operate in fragile states. 

 The SDC's main areas of activity

  • The SDC is committed to raising international standards for commodities production and trading and ensuring that governments and companies properly implement such standards.
  • Switzerland supports the implementation of multilateral instruments in the fight to control corruption and illicit financial flows.
  • In terms of international development cooperation, the SDC is committed to assisting its commodity producing partner countries in managing natural resources and creating sustainable value chains.
  • By supporting research and multi-stakeholder platforms, Switzerland is contributing to a better understanding of both the challenges and opportunities facing developing countries in relation to mining.

Current projects

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Air Pollution Impact on Health

air polluted suburban area in UB

01.10.2018 - 31.12.2022

This project aims at reducing the risks of air pollution to maternal and child health in urban Mongolia targeting the most polluted areas of Ulaanbaatar and one province centre. This sector governance project establishes evidence linking air pollution and its health impact, pilots and improves risk reduction measures for children and pregnant women, and both will inform policy making. Swiss know-how will be applied, i.e. through involvement of the Swiss Tropical and Public Health Institute.


State Support Programme (SSP) Nepal

01.10.2018 - 31.01.2024

Switzerland contributes to peace and stability in Nepal by supporting the country’s successful transition to federalism which is a pre-condition for enhanced economic development and prosperity. States are a critical catalyst for identity, conflict resolution and regional development in Nepal’s federal system. The programme therefore supports the State’s systems and capacities for inter-governmental cooperation, implementation and responsiveness towards citizens’ demands.


Somalia - Inclusive and accountable governance

01.09.2018 - 31.12.2021

In 2012, a comprehensive state-building process along federalist principles started in Somalia. Switzerland will contribute to a more inclusive, accountable and equitable governance system by focusing on the constitutional review process and strengthening the parliamentarians’ capacities. It will promote knowledge sharing, exchange of Somali, Swiss and international expertise, and public discourse to foster Somali-owned governance arrangement.


SDC –OECD DCD Partnership on Illicit Financial Flows 2018-2021 (single phase)

01.09.2018 - 30.11.2021

lllicit Financial Flows (IFF) constitute a fundamental obstacle to economic growth and good governance in the development countries. Building on previous and current OECD/DAC work on IFF, the Development OECD Co-operation Directorate (DCD) and SDC are prepared to establish a partnership on IFF to contribute in designing policies and building partnerships to address IFF across source, transit and destination countries. Switzerland thereby contributes to efforts of the international community to achieve SDG 16.


Citizen security

Honduran Police Strengthening

01.09.2018 - 31.08.2022

The program supports the reforms of the National Police focusing on institutional integrity: reform of the police education system, community policing and effective control systems for personnel. In the Gulf of Fonseca and the Mosquitia, justice and security sector actors, local governments, civil society, private sector and indigenous populations strengthen their cooperation and jointly implement local and regional violence prevention strategies.


Somalia - UN Joint Programme on Local Governance and Decentralized Service Delivery (JPLG)

01.09.2018 - 31.12.2021

After two decades of civil war and the following establishment of an internationally recognised federal government of Somalia in 2012, the UN Joint Programme for Local Governance and Decentralised Service Delivery (JPLG) supports the building up of more effective, accountable and inclusive local governance systems. Focusing on improved regulatory frameworks, enhanced public service delivery, and civic engagement, SDC contributes to enhanced state legitimacy, peacebuilding and more equitable access to public service well-being for all citizens, aiming thereby at more stability in the Horn of Africa.


Réduction de risques de catastrophes naturelles dans le Sud et le Sud-est d’Haïti

01.09.2018 - 31.08.2022

En Haïti, les catastrophes répétées détruisent les actifs des populations, les infrastructures économiques et provoquent des pertes en vies humaines. Elles freinent la croissance et le développement. Le projet vise à réduire les risques naturels via le transfert de compétences aux acteurs locaux, la sensibilisation des populations et la création de conditions favorables à la planification/réalisation des mesures de réduction de risques qui protègent les personnes vulnérables de certaines communes du Sud et du Sud-est, 2 des départements les plus à risques.


Strengthened and Informative Migration Systems (SIMS)

16.08.2018 - 14.12.2023

Labour migration remains a key driver for development in Bangladesh. The present project strengthens the socio-economic development of the country by providing better life perspectives for migrant workers. It enables migrant workers and their families to take informed decisions towards a productive and safe migration experience with reduced social costs. This supports implementation of the parliamentary mandate to better link Swiss migration policy with international cooperation.


Safer Migration (SaMI III) project

16.07.2018 - 15.07.2022

Labour migration is positively affecting Nepal’s socio-economic development with remittances significantly reducing poverty. Nevertheless, the rights of migrants are often violated. The Safer Migration project will empower migrants and their families and strengthen government protection mechanisms. The project will benefit about 600’000 men and women in three states of Nepal and enable about 60 local governments to run foreign employment services.


Towards Transparent, Inclusive and Accountable Governance in the Republic of Macedonia

15.07.2018 - 30.06.2022

The project aims at increasing gender equality in Macedonia and the quality of life for women and vulnerable groups by 1) systematically integrating a gender perspective in public policies and budgets which leads to the allocation of more funds for greater gender equality in strategies and policies; 2) empowering women and vulnerable groups to advocate for their needs in municipal planning and budgeting; and 3) supporting CSOs and Members of Parliament in overseeing the implementation of gender responsive policies and initiatives.


Programme de Développement des Infrastructures Économiques et Marchandes au Bénin (PDIEM)

01.07.2018 - 30.06.2022

La phase 1 du PDIEM a rénové 6 infrastructures économiques et marchandes d’importance nationale/régionale, pour dynamiser l’économie locale. Le gouvernement a demandé de répliquer ce projet à d’autres endroits. En cofinancement avec les communes et l’Etat, la phase 2 rénove 4 autres infrastructures, intégrant la gestion des déchets. Les revenus contribueront à entretenir les marchés, les taxes générées seront réinvesties pour des services publics améliorant les conditions de vie.


Mekong Region Land Governance (MRLG) Phase 2

01.07.2018 - 31.12.2022

Land governance remains at the centre of development challenges in Cambodia, Laos, Myanmar and Vietnam (CLMV), and land expropriation is a key driver of new poverty and food insecurity. The governments in the region have begun to turn their attention to legal and policy issues on land governance. This creates an opportunity for MRLG and the Reform Actors it brings together, to contribute to improvements in policies and practices regarding land tenure security for family farmers.

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