Archive for category: Agriculture

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Digital Solutions: AgriDigital Reduce Rural Poverty

AgriDigitalWith nearly two-thirds of those living in extreme poverty worldwide working in agriculture, increasing farming output can directly reduce poverty. Researchers suggest that to achieve this agricultural growth, countries need to boost rural productivity, instead of increasing farmers’ inputs or resources. According to the World Economic Forum, increased productivity in agriculture reduces poverty at a higher rate than increased productivity in all other sectors, including manufacturing. This is where AgriTech businesses can lend a hand.

Rural Poverty: Background

The AgriTech sector, an industry that provides technological solutions to agricultural problems, has surged in recent years, with an average of 1,522 new companies founded annually in the past decade. This comes at a time when global agriculture has faced numerous threats, from supply chain shocks during the COVID-19 pandemic, to a changing climate that threatens global crop supplies, to the ongoing conflict in Ukraine, which has raised food prices worldwide.

Brookings suggests that increasing agricultural productivity can directly reduce poverty, with a 1% increase in agricultural GDP creating a greater than 1% decrease in poverty. AgriTech businesses should help boost this productivity. Instead of increasing the resources available to small rural farmers, these companies help producers reach the market, make informed decisions through data, and gain access to key lines of credit and funding.

This article will highlight three AgriTech companies in three different countries and examine how these digital solutions can help reduce rural poverty and help farmers grow their businesses from subsistence activities to free-market enterprises.

AgriDigital

AgriDigital is a digital management platform that helps participants across the agricultural supply chain manage their business and make sales. Based in Australia, AgriDigital uses blockchain technology—the same digital ledger that’s behind the world’s leading cryptocurrencies—to allow buyers and sellers to make safe transactions through their platform.

Enabling online transactions between members of the agricultural supply chain is only one of AgriDigital’s many functionalities. The platform also allows users to manage inventory and deliveries, send invoices, connect with other partners in the supply chain and utilize their data to make informed business decisions. The software is designed to help each of the different roles across the supply chain, including farmers, site operators, grain traders, and brokers.

Apollo Agriculture

Apollo Agriculture helps Kenyan and Zambian farmers gain access to financing. The company allows farmers to buy inputs directly on their site. If a farmer is cash-strapped and needs to buy on credit, Apollo will give them a loan with favorable repayment conditions. The farmers also receive free insurance on purchases bought with credit in case of an emergency.

Apollo connects farmers with nearby agrodealers who also use the site. In helping both dealer and farmer buy and sell inputs where needed, Apollo fills the same intermediary role as AgriDigital, providing a platform to connect various members of the supply chain. Apollo also provides training for farmers and logistics for agrodealers.

Mayani

Mayani is a company from the Philippines that helps agri-fishery businesses sell their products to local businesses. With 2% of the country’s GDP consisting of aquaculture, Mayani helps fisheries weather the seasonal spikes that leave fishermen and women at the mercy of volatile prices. The business helps these fisheries and farms find partner businesses such as restaurants, hotels and supermarkets in a B2B format. These partner businesses gain access to sustainably sourced, quality local ingredients. Households can also use the platform to find fresh produce for the home kitchen. Mayani, while acting as an intermediary, also performs quality control on products delivered from the farm to the kitchen/market.

Technology Solving Rural Problems

The three companies surveyed above are just a small sample of the larger AgriTech sector that creates efficient ways to boost productivity and reduce rural poverty. They also perform just a small subset of the total functions that AgriTech businesses provide.

AgriDigital also helped customers manage their business, while Apolo Agriculture provided training and financing.

However, Brookings notes several other functions that AgriTech businesses perform. These include mechanization processes like IoT sensors that help farmers increase crop production, or traceability capabilities that allow products to be tracked through the supply chain, ensuring responsibility for quality products.

International poverty has decreased where crop productivity has increased. In East Asia, where many countries have climbed the economic ladder, crop yields have multiplied by a factor of six in the last 40 years. In Sub-Saharan Africa, however, these crop yields have doubled, Brookings reports.

The Future of Rural Poverty

If agricultural productivity is inversely related to global rural poverty, then businesses must focus their efforts on increasing this productivity. AgriTech businesses like AgriDigital, Apollo Agriculture, and Mayani are working towards this goal. By training farmers in useful skills, helping farmers make better business decisions through data collection, giving farmers much-needed access to finance and inputs, simplifying complex business management into simple, easy-to-use applications and connecting different groups of the supply chain together through effective intermediary platforms, these companies work to reduce rural poverty. Helping smallholder farmers gain access to markets ensures that the two-thirds of the world’s poorest who are employed in agriculture can escape rural and overall poverty and become small business owners in their own right.

– Charles Citron

Charles is based in Boston, MA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Banana Fiber in Uganda: A Sustainable Solution

Banana FiberThe East African Highland banana, a staple food crop, is cultivated by roughly 75% of Ugandan farmers, making it a cornerstone of both agriculture and daily life. ​​Uganda is also the top banana consumer per capita globally and Africa’s largest producer of the crop. However, this agricultural abundance has a downside: every banana harvest leaves behind heaps of pseudostems, an organic waste that typically rots in the field.

Now, innovators are reimagining that waste as the basis of a growing industry that produces biodegradable textiles, boosts rural employment and positions Uganda to meet global demand for sustainable materials.

What Is Banana Fiber and Why Now?

Banana fiber is a strong, biodegradable material extracted from the pseudostem of the banana plant. Previously discarded after harvest, these stems are now being repurposed into textiles, rope, hair extensions and even vegan leather. Compared to cotton, banana fiber requires less water and fewer chemicals and decomposes naturally. This makes it a timely alternative in the global push for sustainable materials.

This transformation was initially spearheaded by the Banana Textiles in East Africa (Banatex-EA) project at Busitema University, with support from partners like TEXFAD, a local startup. The project’s goal is to commercialize banana fibers as an alternative to cotton. According to project lead Edwin Kamalha, banana fibers share several desirable properties with cotton but with a lighter environmental footprint.

Yet regulatory and technological barriers remain. Uganda has yet to pass a biotechnology bill that would allow for genetic improvements to banana varieties better suited for fiber production. Production costs are high and large-scale mechanization is still limited, which has so far restricted the market’s ability to scale.

An Industry Takes Root: Rural Jobs and Local Impact

Banana cultivation has expanded steadily in Uganda, especially in the southwest, boosting regional incomes. Despite these gains, several smallholder farmers live below the poverty line. In response to this economic disparity, attention is now turning to banana fiber in Uganda. Its value chain is labor-intensive by nature, involving cultivation, stem harvesting, fiber extraction, spinning, weaving and final product design. This structure creates a spectrum of skilled and semi-skilled jobs, particularly in rural areas where unemployment can reach nearly 10%.

TEXFAD is currently employing both full-time and part-time workers across the fiber-to-product pipeline. The Small and Medium-sized Enterprise (SME) sources stem from local farmers, train artisans in fiber processing and produce items like rugs, table runners and biodegradable hair extensions. More than 50% of TEXFAD’s hires are women, many of whom previously worked informally or were unemployed.

Similarly, the Banatex-EA initiative has created at least 30 full-time jobs, with more anticipated as the project scales. Three recent graduates from Busitema University have been recruited into technical roles, helping bridge academia and industry.

A Sustainable Market on the Rise

Globally, the demand for sustainable and circular materials is surging. From fashion brands seeking biodegradable textiles to eco-packaging solutions and plant-based alternatives to leather, banana fiber aligns well with these market trends. With its abundant raw materials and growing technical know-how, Uganda is well-positioned to be a leader in this space.

Still, structural challenges such as regulatory gaps and a lack of industrial-scale fiber processors must be addressed to reach export viability. As innovation continues and pilot programs like Banatex-EA demonstrate success, Uganda could unlock new export revenues while reducing rural poverty.

– Sriya Regulapati

Sriya is based in Vancouver, Canada and focuses on Business and Good News for The Borgen Project.

Photo: Pexels

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Everything You Need To Know About Poverty in Rwanda

Poverty in RwandaThe Republic of Rwanda, colloquially referred to as the Land of a Thousand Hills, is a small nation situated to the east of the Democratic Republic of Congo (DRC). Comparable in size to the state of Massachusetts, three main ethnic groups live in Rwanda: the Hutu, the Tutsi and the Twa. Although these groups share a common culture and language, people have sustained historical tensions, most tragically culminating in the 1994 genocide that significantly shaped the country’s identity. Rwandan officials and the United Nations have made remarkable efforts to alleviate the deep-rooted poverty in Rwanda that these tragic events exacerbated. Nevertheless, challenges remain, with approximately 38.6% of the population living below the poverty line.

Land Scarcity

In a country where 82% of the population resides in rural areas and 62% of the workforce is employed in agriculture, land scarcity is a significant issue and exacerbates poverty in Rwanda. Since the 1940s, the Rwandan population has increased almost sevenfold; now, with 525 people per square kilometer, Rwanda is the most densely populated country in Africa. The average farm size in Rwanda is a mere 0.4 hectares, which is far too small to sustain a single family, resulting in challenges to food security and livelihood sustainability.

Consequently, as the population continues to boom in size, the struggle for arable land intensifies, contributing to a cycle of land degradation and increased rural poverty. For instance, overploughing and soil erosion has degraded 45% of Rwandan land. Policymakers have urgently needed to address the scarcity of arable land in Rwanda, who have launched initiatives to reduce these intertwined social and economic issues. Government responses have included encouraging farmers to merge plots and increase productivity, which inheritance laws have hindered; promoting high-yield crops like maize on smaller plots of land; and implementing anti-erosion projects to restore soil fertility.

The Link Between Chronic Malnutrition and Poverty in Rwanda

Intrinsically linked to overpopulation and land scarcity, chronic malnutrition is another defining cause of poverty in Rwanda. Approximately one-fifth of Rwandan households experience severe food shortages, perpetuating a cycle of diets that are deficient in essential nutrients. Subsequently, more than 60% of Rwandan children rely on a starch-based diet, causing them to be small, underweight and chronically malnourished, with the average life expectancy being less than 70 years old. As a result, Rwandan children, particularly in rural areas of the Western provinces, suffer from stunted growth. The stunting rate in Rwanda has declined from 44% in 2010 to 33%, which is now in line with the average for Sub-Saharan Africa.

Governmental initiatives and NGO projects have worked to relieve the malnutrition plaguing Rwanda. Government programs include the Girinka program, which provides cows to low-income families to increase milk consumption, and the 1,000 Days program, which targets pregnant women and infants with fortified food. Meanwhile, the Global Alliance for Improved Nutrition (GAIN) has advocated for fortification policies that mandated iron and zinc in staple foods since 2016.

Changing Weather Patterns

Despite experiencing notable economic growth in recent years, Rwanda remains vulnerable to the multifaceted impacts of unpredictable weather patterns, which have substantially exacerbated existing poverty levels. Climate phenomena particularly affect the agricultural sector, a cornerstone of the Rwandan economy and the primary source of livelihood for most of its population. Erratic rainfall patterns have led to reduced crop yields. At the same time, catastrophic flooding events in 2020 destroyed more than 9,383 hectares of farmland, damaging or destroying approximately 8,143 houses and disrupting local food systems.

Moreover, changing weather patterns have intensified the prevalence of severe food insecurity and agricultural failure within the country. In the aftermath of the 2023 drought, staple food prices surged to 40.4%, further straining the economic capacity of low-income households. Notably, around 80% of Rwanda’s rural poor population relies heavily on rain-fed agriculture. Thus, weather shocks push them deeper into the cycle of poverty. While people have admirably made climate resilience, with the Green Climate Fund pledging $39.1 million for Rwandan adaptation projects, without global aid, it is the most vulnerable who will continue to bear the brunt as drastic weather changes exacerbate poverty in Rwanda.

Future of Poverty in Rwanda

While the Rwandan government, with the aid of various NGOs and global organizations, have made a remarkable effort to reduce poverty in Rwanda, it is still prevalent. The road ahead demands local empowerment and international solidarity. While Rwandan progress has been commendable, lasting progress necessitates scaling up climate-smart agriculture, strengthening safety nets and global investment to bolster grassroots activism, initiatives and infrastructure. Poverty in Rwanda is not inevitable, and with continued collaborative innovation, the struggles of today can become opportunities of the future.

– Emilia Bartle

Emilia is based in Watford, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Wikipedia Commons

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Bees Aiding Food Security in Tonga

Food Security in TongaTonga is a Polynesian island nation vulnerable to natural disasters. Out of Tonga’s population of just more than 100,000, nearly 60% struggle to access affordable and nutritious food. Cyclones, volcanic eruptions and rising sea levels frequently disrupt local agriculture, leaving families without reliable food sources.

To address this challenge, the OHAI Tonga Honeybee Food Security Project, founded by Uili Lousi, introduced a surprising yet impactful solution—beekeeping. Beekeeping strengthens Tonga’s food systems by improving crop yields through pollination. Crops pollinated by bees produce up to 60% more food than those without pollinators. As a result, farmers in Tonga have started integrating beekeeping into agricultural practices to stabilize food production and protect livelihoods from environmental shocks.

Empowering Communities Through Bee Training

OHAI launched beekeeper training programs across the islands to build a skilled workforce capable of maintaining and protecting hives year-round. These programs aim to reduce Tonga’s dependence on food imports and help farmers recover quickly after disasters. Alongside crop benefits, bees produce honey and wax, creating new opportunities for trade and income generation. In 2024, beekeeping helped communities maintain food security during the first few quarters of the year, despite the region’s exposure to multiple climate shocks. Farmers and families who participated in bee training reported stronger crop resilience and greater food availability.

Growing Support Through Local Organizations

Two key organizations lead the country’s beekeeping initiatives. OHAI continues to educate the public on the role of pollinators and sustainable food systems. Meanwhile, the Beekeepers’ Association of Tonga (BATI) trains more local beekeepers and strengthens the island’s growing bee population. BATI focuses on long-term growth by preparing beekeepers to work through every season and weather pattern. These organizations also help residents design bee-friendly gardens and farms, which increase pollination and improve nutrition for households facing poverty. International organizations such as Volunteer Service Abroad (VSA) and Climate Reality have also supported Tonga’s beekeeping movement by offering training resources, tools and awareness campaigns.

Improving Nutrition and Stability

By early 2024, Tonga’s food security showed promising signs of stability for the first few quarters, despite ongoing environmental threats. Reports from the World Food Programme (WFP) confirmed that targeted local initiatives—including beekeeping—helped maintain steady food access. These programs directly address poor nutrition and reduce the island’s dependence on imported food. Through training and outreach, OHAI and BATI teach beekeepers how to protect hives from extreme weather and disease. These ongoing efforts keep bee populations strong and ensure that farmers can rely on them through future storms or droughts.

Looking Ahead

The beekeeping movement offers more than just food security in Tonga—it represents a path toward long-term resilience. As climate-related challenges continue to threaten agriculture and livelihoods, locally driven initiatives like those led by OHAI and BATI demonstrate the value of empowering communities with sustainable tools. By expanding beekeeper training, strengthening hive protection and increasing awareness of pollinators’ role in food systems, Tonga could continue building a more self-sufficient future. With each hive, the country moves closer to securing its food supply, improving livelihoods and fostering environmental stewardship for generations to come.

– Anastasia Flerchinger

Anastasia is based in Richland, WA, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Food Systems in Pakistan

Food Systems in PakistanFrom inefficient supply chains to outdated frameworks, food systems in Pakistan are under significant strain. Behind spoiled harvests and empty shelves is a configuration of a fractured food crisis, where millions go hungry because of these vulnerabilities. More than 11 million people in Pakistan’s rural areas are facing these challenges, with 1.7 million in emergency conditions. Addressing the urgency of Pakistan’s systemic challenges may help reform a more sustainable infrastructure to transform the food system.

Pakistan’s Agricultural Sector

Agriculture drives Pakistan’s economy with around 44% of the labor force and contributing nearly a quarter of the country’s GDP. Aside from this sector being vital for economic stability, 67% of rural households also rely on agriculture for their livelihoods. However, challenges arise within environmental and systematic divisions, including chemical fertilizer overuse, poor irrigation techniques and outdated farming methods that have led to soil degradation, salinity and waterlogging. 

However, agricultural abundance does not automatically translate into national food security. As an example, Pakistan has produced bumper wheat crops in recent years, greater than 23 million tons in 2006 alone, yet millions still suffer from food insecurity due to poor distribution networks. The imbalance between production and access showcases a deep-rooted problem within the food system in Pakistan: a discrepancy between supply and sustainable delivery. Climate shocks, infrastructure gaps and a lack of investment in rural supply chains further exacerbate this disconnect. To ensure long-term food security, Pakistan must go beyond crop yields and focus on building a resilient and equitable food system. Addressing inefficiencies in the distribution of the food supply chain and ensuring that sustainable agricultural practices are supported from farms to households is not just a logistical challenge but a moral imperative.

Distribution of the Food Supply Chain

The distribution of food systems in Pakistan is facing challenges impacting farms and consumers. The causes of substantial post-harvest losses, from perishable fruits, vegetables and dairy are due to inadequate rural roads, lack of cold storage, unreliable transportation and market access barriers. About 30–40% of these goods never make it to the market, which threatens food availability, resulting in an annual economic loss of millions.

Yet, within these challenges lie opportunities. Investments in rural infrastructure and more localized supply chains may reduce spoilage and stabilize food prices; one major issue is the highly unequal distribution of land and water; only 37% of rural households own land, and most of those own fewer than five acres, which limits the ability of small farmers to benefit from agricultural growth. To address this, Pakistan has introduced programs aimed at improving rural infrastructure, such as expanding rural road networks and electrification projects, which may help reduce transport costs and increase access to markets. However, many rural enterprises still face frequent power outages and limited credit access, hindering productivity. Policies that invest in human capital and support both farm and non-farm rural sectors to build a more inclusive and resilient food system in Pakistan must complement these efforts.

Upgrading Infrastructure for Sustainable Food Systems

Action Against Hunger, for example,  is a non-government organization that began working in Pakistan in 2005 to combat hunger and malnutrition, especially in vulnerable rural areas. The organization focuses on improving food security by supporting home gardens, promoting climate-resilient agriculture and distributing livestock and fish to boost access to nutritious food. In the Sindh province, where child malnutrition is highest, it has helped more than 314,000 people in the past year through programs like Farmer Field Schools and vertical gardening. Its efforts have led to more diverse diets, increased crop yields and promoted better nutrition for families across 10 districts.

– Hibah Iqbal

Hibah is based in Houston, TX, USA and focuses on Global Health for The Borgen Project.

Photo: Unsplash

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How IFAD Fights Rural Poverty in Honduras

Rural Poverty in Honduras
The International Fund for Agricultural Development (IFAD) and the Honduran government have cooperated for many years to fight rural poverty in Honduras. The country is largely agrarian, with every one in four citizens employed in agriculture, and is considered a low to middle-income country. With nearly half the population living on less than $6.15 a day, Honduras is the poorest country in Central America, and the second poorest behind Haiti in Latin America.

Adding to Honduras’s perennial issues are the frequent severe weather events and climate disasters that plague the country’s rural infrastructure. For instance, a 2019 drought decimated the land’s bean and corn crops, creating widespread food insecurity for Honduran citizens. The following year, hurricanes Eta and Iota affected more than 400,000 citizens and caused more than $2 billion in damage.

Since 1979, the IFAD has worked with Honduras to alleviate rural poverty, provide financing to rural farmers and build systems and infrastructure that support small, independent agriculture. This article will explore IFAD’s current program benefiting farmers, the Project for the Economic and Social Inclusion of Small Rural Producers in Northeast Honduras (PROINORTE) and the organizational framework, the Country Strategic Opportunities Programme (COSOP), that currently guides IFAD’s operations in Honduras. The article will also examine one of IFAD’s former successes in the country to demonstrate how COSOP and PROINORTE will help alleviate rural poverty in Honduras.

About IFAD

Founded in 1977 in response to global food shortages, IFAD is a United Nations (U.N.) agency dedicated to addressing rural poverty. The agency provides funding, training and investment to rural communities to strengthen small-scale agribusiness and the overall well-being of rural populations. IFAD partners with businesses, corporations, international organizations and governments to secure funding for grants and low-interest loans directed toward rural farmers.

IFAD is guided by its Country Strategic Opportunities Programme 2020-2025 (COSOP) in Honduras. COSOP is an institutional framework that outlines the rules of engagement for IFAD’s involvement in Honduras. It defines the specific areas where individual IFAD projects should concentrate their efforts and outlines the strategic objectives the organization aims to accomplish.

Specifically, COSOP lists two objectives that guide Honduran IFAD projects. The first focuses on increasing rural productivity and building sustainable food systems. This goal not only aims to help local rural farmers improve their business practices, but also strives to improve rural Honduran communities’ social and physical health. The second objective aims to boost rural employment in Honduras by helping producers access markets and funding.

PROINORTE: Building Small-Scale Farming Businesses

Under the guiding framework of COSOP, IFAD has created two projects to help reduce rural poverty in Honduras, the Project for Competitiveness and Sustainable Development in the South-Western Border Region (PRO-LENCA) and the Project for the Economic and Social Inclusion of Small Rural Producers in Northeast Honduras (PROINORTE). PRO-LENCA reached completion in 2023 and will be discussed in the next section below.

PROINORTE is the only IFAD program currently open in Honduras. The program operates in the northeast region of Honduras, where 59% of households live in poverty. Like its guiding framework, COSOP, PROINORTE aims to improve the productive and marketing capabilities of small rural farmers and to foster sustainable business practices and lifestyles in rural communities. Additionally, the program looks to help farmers build resilience against Honduras’ frequent climate disasters and economic volatility.

PROINORTE includes three areas of activity or “components.” Component 1 helps farmers develop organizational frameworks, build partnerships between businesses and producers, and bolster entrepreneurial agrarian activity. Meanwhile, component 2 provides financing and implementation of plans put forth by local producers and businesses. Component 3 monitors PROINORTE’s progress and ensures that goals are met.

PROINORTE, rather than providing emergency relief or assistance, works to develop small-scale, subsistence-level farms into functioning, free-market businesses. By providing professional training and investment, the project seeks to connect agrarian farmers with markets to sell their products, thereby increasing rural employment and living standards. The project has an estimated total cost of $46.48 million, with funding provided by the IFAD, the OPEC Fund for International Development, the Honduran government and local beneficiaries in Honduras.

Past Successes

To understand how PROINORTE will positively impact northeastern Honduran communities, it is important to examine IFAD’s past successes in the country. PRO-LENCA, a program similar to PROINORTE but located in the southwestern region of Honduras, wrapped up in 2023. Like PROINORTE, PRO-LENCA sought to reduce rural poverty in Honduras by investing in and developing local businesses and agriculture.

According to IFAD documents, PRO-LENCA was largely successful, benefiting 59,000 Honduran citizens and creating more than 1,800 jobs in the area. The program reached nearly all of the households it set out to help, with the incomes of these impacted households rising by almost 50%. Moreover, for every dollar invested in PRO-LENCA, $2.40 was created in economic benefits for rural Hondurans in the target region. Additionally, the project increased youth and female employment in southwest Honduras and decreased food insecurity.

Looking Forward

While it is too early to assess PROINORTE’s economic impact, the benefits that PRO-LENCA created paint a positive future. PRO-LENCA worked to build organizational capabilities and link rural businesses to consumer markets. The hope is that PROINORTE will repeat this program’s success in Honduras’ northeast region. Guided by COSOP, PROINORTE looks to continue IFAD’s track record of reducing rural poverty in Honduras. By helping rural farmers turn their small-scale agriculture into full-fledged businesses, PROINORTE will stimulate rural economies and help Honduran farmers build resilient food systems.

– Charles Citron

Charles is based in Boston, MA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Vietnam’s Transformed Economy: The Rice Revolution

Vietnam's Transformed Economy: The Rice RevolutionIn recent history, Vietnam—a country once associated with war and humanitarian crises—has emerged as one of Southeast Asia’s most resilient and rapidly developing economies. Through agricultural innovation and strategic reforms, millions have been lifted out of poverty. At the heart of this revival is Vietnam’s rice sector, which has secured food security and turned the country into a global exporting powerhouse.

From Crisis to Recovery

Following the end of the Vietnam War in 1975, the country faced profound challenges. Widespread poverty, food shortages, devastated infrastructure and a stagnant economy threatened national survival. Humanitarian aid from countries like the United Kingdom (U.K.), Australia, Japan and the United States (U.S.) helped avert famine. The turning point came with the launch of Doi Moi in 1986—an economic and political reform policy initiated by the Communist Party. Doi Moi shifted Vietnam’s centrally planned economy toward a more market-oriented system, unlocking the potential of its agricultural sector, especially rice production.

Rice Revolution Powers Rural Prosperity

According to the Observatory of Economic Complexity (OEC), Vietnam ranks as the world’s third-largest rice exporter out of 184 countries. In 2023 alone, the country exported $3.88 billion of rice, mainly to the Philippines, Indonesia, China, Ghana and Côte d’Ivoire. Vietnam supplies more than 7 million tons annually to countries across Asia, Africa and the Middle East. Vietnam’s transformed economy depends on the Mekong Delta, often called the “Rice Bowl of Vietnam,” producing more than half of the country’s rice, accounting for 95% of its exports.

The government’s dismantling of the collective farming system and its return of land-use rights to households drove this transformation. As Dr. Matthew Morell, Director General of the International Rice Research Institute (IRRI), explained: “Vietnam contributes more than 6% of global rice production. Promoting good agricultural practices such as the ‘1 Must Do, 5 Reductions’ will help farmers reduce pesticide use and at the same time increase productivity toward sustainable rice production and gradually improve the brand of Vietnam rice.”

The government also heavily invested in rural infrastructure. Roads and electricity are used by almost 100% of the population, enabling farmers to access markets efficiently. This helped lift millions out of poverty, especially in rural provinces such as A Giang, Dong Thap and Kien Giang. During the COVID-19 pandemic, domestic rice production ensured national food security and reinforced Vietnam’s role in global food supply chains.

Beyond Agriculture: A Diversified Economy

While agriculture remains central, Vietnam has broadened its economy to include manufacturing, services and technology. The country has become a preferred destination for foreign investment in electronics and textiles, with tech companies like Samsung, Intel and LG establishing operations since 2008. In 2023, Vietnam launched its first homegrown electric vehicle brand, Vinfast, which began exporting to North America and Europe.

The Road Ahead

Vietnam’s transformed economy and current economic trajectory illustrate how agricultural reform, infrastructure investment and market liberalization can contribute to poverty reduction. Rice production remains a central driver of development, while diversification into manufacturing and technology has expanded economic opportunities. As the country aims for upper-middle-income status by 2030, ongoing efforts can potentially address rural-urban inequality, adapt to urbanization pressures and navigate shifting global dynamics. Continued focus on inclusive growth and structural reforms could shape the next phase of Vietnam’s development.

– Sebastian Llerena

Sebastian is based in Edison, NJ, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr

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From 60% to 30%: Inside Rwanda’s Poverty Reduction Miracle

From 60% to 30%: Inside Rwanda’s Poverty Reduction Miracle Rwanda, a country in central Africa, has transformed its image from one linked to genocide to a model of development. Over the past generation, it has reduced its extreme poverty rate from 60.3% in 2000 to under 40% in 2017, earning recognition for its poverty alleviation, often called the “Rwandan Miracle.”

A Country Rising from the Ruins

In 1994, Rwanda experienced one of the fastest and most horrific genocides in history, resulting in around 800,000 to 1 million Tutsis and moderate Hutus murdered in just 100 days. When the Rwandan Patriotic Front (RPF) finally ended the genocide and established a government in July 1994, this marked the beginning of Rwanda’s poverty reduction miracle. 

By the year 2000, six years after the genocide, Rwanda continued to be one of the world’s poorest nations. Life expectancy was about 48/49 years, child mortality rates ranked among the highest internationally and 60% of the population survived on less than the international poverty line of $1.90 per day. The country faced significant challenges, such as limited natural resources, high population density, landlocked geography and profound trauma.

Vision 2020: Planning for Transformation

Under President Paul Kagame, Rwanda’s leadership embarked on an ambitious development agenda. In 2000, the government launched Vision 2020, aiming to transform Rwanda into a middle-income country by 2020 to reduce poverty from 60% to 30%. It focused on poverty reduction and established specific programs as the backbone of Rwanda’s poverty reduction miracle transformation:

The Ubudehe System: Target Poverty Identification

Rwanda’s poverty reduction miracle strategy relies on the innovative Ubudehe system. This community-based approach involves identifying and categorising households according to their socioeconomic status. By utilising traditional Rwandan practices of collective action, the system sorts each household into one of four economic categories. This classification enables tailored interventions that effectively address the needs of different families. 

Vision 2020 Umurenge Programme (VUP)

Initiated in 2008, the VUP has served as Rwanda’s key initiative for reducing poverty, functioning through three key components: 

  • Public Works: Offering paid work on community infrastructure projects for capable adults from underprivileged backgrounds in households.
  • Direct support: Cash transfers provided unconditionally to the most vulnerable households lacking labour capacity.
  • Financial Services: Providing access to credit and financial support to empower underprivileged families and helping them gain the knowledge and resources they need to improve their financial situations and achieve greater economic stability.

According to the World Bank, VUP beneficiaries in these programs increased from 19% in March 2020 to 41.5% by December 2021. This project addresses childhood malnutrition in Rwanda through safety nets that enhance nutrition and early childhood development. The Nutrition Sensitive Direct Support (NSDS) has helped more than 200,000 households, exceeding the target of 59,000 and covering 96% of eligible families in 18 districts. 

Girinka: One Cow per Poor Family

Rwanda’s notable poverty initiative, Girinka, supplies dairy cows to impoverished families. From 2006 to the end of June 2022, it has provided 427,576 cows to 427,576 families, an 84.7% accomplishment that accounts for the programme’s goal. Research indicates that Girinka participants experienced increased household income and enhancements in child nutrition.

Universal Health Coverage as Poverty Prevention

Rwanda acknowledges that health shocks cause poverty. To address this, the country created a Community-Based Health Insurance scheme (Mutuelles de Santé), enabling citizens to pool funds and receive donations for health care costs. Each member contributes 1,000 Rwanda Francs ($2).  

The program fully subsidised premiums and copayments for 1.5 million of the poorest residents in 2011 to improve affordability. Consequently, more than 90% of Rwandans had health insurance by 2020, compared to an average of 31% in other low-income countries. This coverage significantly increased life expectancy in Rwanda from 49.7 years in 2001 to 69.6 years in 2022, enabling the government to tackle critical health challenges. Rwanda is the only low-income country in Sub-Saharan Africa to meet the United Nations (U.N.) Millennium Development Goals on maternal mortality and infectious diseases.

Agricultural Transformation and Rural Development

Agriculture is vital for Rwanda’s poverty reduction miracle, lifting 1 million citizens from extreme poverty in the past decade through improved practices backed by the International Development Association (IDA). The sector contributes 33% to GDP, employs 79.5% of the workforce and accounts for more than 45% of exports. Food security improved in 200 with food production and a 30% income increase for some farmers. Between 2006 and 2011, extreme poverty fell by 14 percentage points, due to rising productivity and a shift to commercial farming.

The Results: From 60% to Below 30% Vision

The interventions implemented in Rwanda’s poverty reduction miracle have significantly transformed Rwanda’s socio-economic landscape. Notably, extreme poverty has dramatically declined from more than 60% in 2000 to 39.1% in recent years. Life expectancy has improved considerably, increasing from 46 years in 2000 to 65 years in 2023. Moreover, child mortality rates have fallen by 70%. Unconditional cash transfer aids 112,000 households across 416 sectors, 73% of which are women-led. Nutrition support is provided for 131,000 children under 2 and 40,000 pregnant women.

– Vanuza Antonio

Vanuza is based in London, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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Reducing Poverty in China

Reducing poverty in chinaSince the country has been very dedicated to eliminating poverty, China has helped around 800 million people out of impoverished conditions. This number accounts for about 70% of poverty eradication worldwide. To what can China attribute this success?

A Brief History of China’s War Against Poverty

In 1949, China was labeled as one of the most impoverished countries in the world; only 10 countries had a lower gross domestic product (GDP) than China. Between 1840 and 1949, roughly 100 million people died in wars due to foreign conflicts in China. Famine was also a result of these conflicts during this period.

During times of war, the economy was demolished and literacy rates and life expectancy dropped. By 1978, China was reformed and reconstructed. From 1978 to 2020, China’s GDP increased by 9.2%. The literacy rate increased and the economy was rebuilt. China went from a needy country to a high-income country in this timeframe.

Agriculture and Urbanization

One key reform China implemented to alleviate poverty was in the agricultural sector. Overall, the productivity of China’s agriculture increased and farmers’ wages increased. This can be attributed to a shift from labor to high-productivity manufacturing.

Another sector that played a significant role in China’s success in reducing poverty was urban development. Between 1980 and 2023, the population in metropolitan areas increased from 200 million to 933 million and the urbanization rate also increased from 19.4% to 66.2%. This led to more jobs and higher wages for migrant workers. This influx of urbanization also decreased poverty in rural areas by providing better-paying jobs and a better produce market for farmers.

How China Reduced Poverty

An increase in labor income was the most significant driver of reducing poverty in China between 1988 and 2007. Improvements in agricultural productivity also contributed notably to this progress. By 2013, rural poverty had fallen to below 10% and was primarily concentrated in less central regions of the country.

Between 2013 and 2018, public transfers played an increasingly important role in raising household incomes and lifting a substantial portion of the population out of poverty. Additionally, declining dependency rates, driven by the one-child policy, improved health care and a reduced birth rate further supported poverty alleviation efforts.

Strategies for Reducing Poverty in China

China’s approach to poverty alleviation encompassed multiple strategies. It prioritized targeted support for impoverished populations in underdeveloped areas while maintaining consistent economic growth. Poverty reduction was integrated into the broader national development agenda, with special attention given to vulnerable groups such as women, children, ethnic minorities and individuals with disabilities.

Efforts were also made to empower those in poverty by fostering self-reliance, raising awareness and providing education on sustainable ways to escape poverty. A key aspect of the strategy involved balancing economic and social development across urban and rural regions, ensuring mutual support between industry and agriculture.

Furthermore, the country invested significantly in infrastructure development, including roads, water sanitation, electricity, gas and housing. Budgetary reforms redirected public and private funding toward poverty alleviation and policy frameworks were adapted to ensure coherence and effectiveness in implementation.

Looking Forward

China’s success in downsizing poverty has eliminated extreme poverty. Yet, the focus remains on moderate poverty in the country. China now aims to guarantee that the majority benefit from the country’s economy and its social life.

– Ella Burke

Ella is based in Lawrence, KS, USA and focuses on Good News and Celebs for The Borgen Project

Photo: Pixabay

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Safi Organics Brings Sustainable Agriculture to Rural Kenya

Safi Organics Brings Sustainable Agriculture to Rural KenyaIn Kenya, 3 million farmers face high fertilizer costs, spending a combined $84 million each year on conventional products. Globally, rising fertilizer prices affect an estimated 237 million smallholder farmers. About 56% of Kenya’s population lives below the poverty line, with most people in rural areas relying on agriculture for their livelihoods. Poor soil quality limits productivity and quality fertilizer remains too expensive for many. Reports reveal that only 20% of Kenya’s land is suitable for cultivation. To address this, Safi Organics uses decentralized production of organic fertilizer as an affordable alternative that strengthens farmers’ incomes and improves soil health.

Safi Organics

Samuel Rigu and Joyce Kamande founded Safi Organics in 2015 to partner with local farmers in Kenya. After graduating from agricultural college, Rigu noticed that Kenyan farmers were burning farming waste like rice husks while the land decayed. He developed a method to make soil more productive using local materials. With partnership from MIT graduate Kevin Kung, they introduced a new process to convert agricultural waste into organic fertilizer, helping to improve long-term sustainability. Safi Organics created a decentralized business model where crop residues are locally processed into organic fertilizers, reducing transportation costs and empowering rural farmers economically.

The company employs rural farmers to help produce the organic fertilizer from agricultural waste. It also works with more than 35,000 farms across Kenya to expand access to sustainable farming practices. Its partnerships give farmers unique access to sustainable agricultural practices that help even the playing field of systemic inequality. 

Economic Impact for Farmers in Kenya

Farmers using Safi Organics fertilizer have seen a 30% increase in crop yields. About 600 farmers using the fertilizer reported a 50% rise in income. The fertilizer also reduces the need for expensive chemicals, allowing farmers to spend 60% to 70% less on fertilizer. Safi Organics has helped preserve more than 6,000 hectares of farmland and repurposed large volumes of waste, contributing to environmental sustainability in Kenya.

Challenges and Opportunities for Growth

Access to credit and financing remains a challenge for many farmers. This challenge makes it difficult for farmers to invest in the new technology that Safi Organics offers. Infrastructure in rural areas in Kenya is underdeveloped, increasing the cost of transport. The company provides more affordable options than international fertilizer providers. With greater outreach and further efforts to help the marginalized in the agricultural industry, the company could further expand awareness of sustainable farming practices. 

Safi Organics demonstrates how local agricultural innovation in Kenya can contribute to farmers’ poverty reduction. By transforming farm waste into affordable, eco-friendly fertilizer, the company improves crop yields, boosts incomes and creates employment for farmers in rural Kenya. As more rural farmers achieve financial independence, the benefits extend to their households and communities. With additional investment and strategic partnerships, Safi Organics could scale its impact, supporting sustainable development and economic inclusion.

– Divya Beeram

Divya is based in San Antonio, TX, USA and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr