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Poverty in Venezuela: Foreign Aid as a Lifeline

Poverty in VenezuelaOnce a prosperous country rich in natural resources, Venezuela now faces an alarming poverty crisis. With hyperinflation, food shortages and a collapsing health care system, millions of Venezuelans struggle to meet basic needs. In this challenging landscape, foreign aid has become a crucial lifeline, delivering essential services that the government is increasingly unable to provide.

The Role of Foreign Aid

Venezuela’s economy has spiraled for years, burdened by political turmoil, reliance on oil exports and international sanctions. As a result, more than seven million Venezuelans urgently need assistance. Foreign aid, primarily through nonprofits and international organizations, has become essential, filling the gaps in food security, health care and clean water access. Many Venezuelans depend on foreign aid to survive and keep families together and communities functioning.

World Food Programme

World Food Programme (WFP) World Food Programme is one of Venezuela’s largest humanitarian agencies providing food assistance. Its programs focus on distributing food baskets and providing school meals to fight hunger and malnutrition. WFP has aimed to reach at least 1.5 million children, especially in rural areas, where food scarcity is most severe. By targeting schools, WFP ensures that children receive proper nutrition and are encouraged to continue their education.

International Rescue Committee

The International Rescue Committee (IRC) provides essential health care, emergency support and cash assistance in Venezuela. It works with families to ensure access to lifesaving medicines and health services, which are otherwise too expensive or unavailable. The IRC also collaborates with partners in neighboring countries to assist those fleeing Venezuela, supporting them with food, shelter and legal assistance. The IRC’s focus on holistic support allows it to address immediate needs while helping people stabilize for the future.

Caritas Internationalis

Caritas Internationalis is a Catholic humanitarian organization with a strong local network across Venezuela. It provides food, medicine and clean water to those most affected by the crisis, including families in remote areas. Caritas also has nutritional programs that target malnourished children and pregnant women, who are most vulnerable to the effects of food insecurity. The organization runs soup kitchens, distributes medical supplies and promotes community health initiatives.

Challenges and Gaps in Aid

While these organizations are achieving significant impacts, their challenges are substantial. Political restrictions make it difficult for foreign organizations to operate freely and aid workers often face bureaucratic barriers that delay the delivery of supplies. Additionally, underfunding limits the reach of their programs. Despite their best efforts, organizations like WFP, IRC and MSF often report funding shortfalls, which prevent them from scaling their efforts to meet the growing demand.

A Call to Action

The poverty crisis in Venezuela is one of the most pressing humanitarian issues today, yet it receives limited global attention. Donor countries, private sectors and international institutions need to increase their support for Venezuelan aid. Without sustained and coordinated aid efforts, the situation will only worsen, deepening poverty and further destabilizing the region.

– Yuhan Ji

Yuhan is based in Cambridge, MA, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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The WFP and Balenciaga: Fashion Combats Hunger and Poverty

The WFP and Balenciaga: Fashion Combats Hunger and Poverty In the world of high fashion, where luxury brands dominate, Balenciaga has taken an innovative step by partnering with the World Food Programme (WFP). This collaboration allows Balenciaga to use its influence to fight global hunger and poverty, revealing a trend among brands to leverage their platforms for critical global issues. By integrating charitable initiatives into its collections, Balenciaga demonstrates that fashion can significantly reduce hunger and help lift people out of poverty.

The Fashion Industry and Poverty

The fashion industry frequently faces criticism for stark inequalities, especially in fast fashion, where low wages and exploitative labor conditions continue cycles of poverty. Luxury brands like Balenciaga, which typically cater to wealthy consumers, possess the power to drive change by supporting initiatives that target poverty and hunger. Balenciaga’s partnership with the WFP exemplifies how the industry can transform from contributing to the problem to enhancing the solution. By focusing on global hunger, Balenciaga addresses one of the most direct impacts of poverty.

Balenciaga and the World Food Programme Partnership

Balenciaga first partnered with the WFP in 2018, launching a collection featuring the WFP logo on t-shirts, hoodies and bags. The brand committed a portion of the sales from this collection to support the WFP’s mission to eradicate hunger by 2030. This partnership aimed to raise funds and enhance visibility for the global hunger crisis, engaging fashion-conscious consumers who might not typically connect with humanitarian causes.

The WFP, the largest humanitarian organization dedicated to fighting hunger, assists more than 150 million people across 120 countries. Through emergency food aid, school meal programs and initiatives to improve food security, WFP addresses hunger in some of the world’s poorest regions. Balenciaga’s high-profile partnership has raised awareness of these efforts, demonstrating how luxury fashion can drive positive change. The funds from this partnership support communities in need, helping alleviate poverty by ensuring access to essential resources.

Fashion as a Tool for Change

Balenciaga’s partnership with the WFP extends beyond financial contributions, elevating the issue of global hunger to mainstream conversations, especially among those previously unaware of its extent. Consumers who wear items from the WFP collection become advocates for the cause, using fashion as a means to initiate discussions on global hunger and poverty. This collaboration demonstrates that fashion can serve as a potent tool for advocacy, challenging the perception that luxury brands are detached from real-world problems. As the fashion industry evolves, more brands are expected to emulate Balenciaga’s approach, leveraging their influence to support humanitarian efforts.

Looking Ahead

The collaboration between Balenciaga and the World Food Programme highlights a shift in how luxury brands can contribute to addressing critical global issues. By raising funds and awareness, this partnership demonstrates the potential for the fashion industry to engage actively in the fight against poverty and hunger. As more brands explore similar initiatives, the role of fashion in promoting social causes could become a more integrated part of the industry’s future, driving meaningful change on a global scale.

– Viola Cuthbertson

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

Photo: Flickr

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Bridging the Gap: Poverty and Maternal Health in Yemen

Maternal Health in YemenYemen is facing a catastrophic humanitarian crisis. Maternal health issues and extreme poverty have become some of the deadliest threats in the region. According to the United Nations Children’s Fund (UNICEF), one woman and six newborns die every two hours in Yemen due to complications during pregnancy or childbirth. The country’s health care system has been severely compromised by prolonged and intense fighting. Since the conflict escalated between the Saudi-led government coalition and Houthi rebels, maternal mortality rates have skyrocketed.

The ongoing conflict has not only destroyed medical facilities but also led to a severe shortage of medical supplies and personnel. As a result, only approximately half of the country’s health facilities are functional and even fewer are equipped to provide adequate maternal and child health services. This scarcity of resources has left millions of women without access to essential reproductive health care, including prenatal check-ups, safe delivery options and postnatal care.

The crisis is further emphasized by widespread food insecurity and malnutrition, which disproportionately affect pregnant women and new mothers. With the economy struggling, many families struggle to afford necessities, let alone specialized medical care. This economic hardship has created a vicious cycle where poverty and poor health outcomes reinforce each other, with devastating consequences for maternal and infant well-being.

Collapsed Health Care System

The conflict has caused a breakdown of Yemen’s health care system. As of 2024, 17.8 million people require health assistance, with one-quarter being women. Among them, 5.5 million of reproductive age, including pregnant and lactating women, struggle to access necessary health services. This is largely due to a shortage of female doctors and nurses, as well as a lack of essential medical supplies. Currently, only one in five functioning health clinics can provide maternal and child health services.

In addition, more than 2.7 million pregnant and breastfeeding women in Yemen are estimated to require treatment for acute malnutrition. Food shortages and insecurity increase the risks of giving birth to newborns with stunted growth and malnourished infants. The lack of medical infrastructure has left millions of women without access to essential health care services.

Economic Impact

The severe economic conditions in Yemen have left 80% of the population struggling to meet basic needs, which directly impacts maternal and infant health through malnutrition and lack of access to care. The economic crisis has worsened the situation for pregnant women and new mothers. The devaluation of the Yemeni Rial and high inflation rates have severely restricted families’ ability to afford nutritious food.

Additionally, the crisis has led to widespread displacement, with 73% of the 4.2 million displaced people being women and children. Despite the Ministry of Public Health and Population’s policy of free access to health care, Yemenis still pay more than 50% of their health expenditures out of pocket.

International Aid

The United Nations Population Fund (UNFPA) has played a crucial role in addressing Yemen’s maternal health crisis by:

  • Being the sole provider of life-saving reproductive health services in the country.
  • Leading the coordination and provision of women’s reproductive health and protection services nationwide.
  • Supporting emergency obstetric and maternal health care at more than 100 health facilities.
  • Offering services to prevent and respond to gender-based violence through 36 safe spaces, eight shelters and seven specialized mental health centers.
  • Leading a rapid response mechanism in partnership with the World Food Programme (WFP) and UNICEF to provide emergency relief to newly displaced persons.

The European Union (EU) has also been a significant contributor to Yemen’s humanitarian efforts by:

  • Allocating more than $130 million in humanitarian funding to address the most pressing needs in the country.
  • Contributing nearly $1.6 billion since 2015 to address the Yemeni crisis, including more than $1 billion in humanitarian aid.
  • Recognizing 13 humanitarian Air Bridge flights since February 2024 to respond to the urgent health crisis triggered by outbreaks of infectious diseases, including cholera.
  • Funding the refurbishment of health centers, such as the Shahir Health Center in Hadramout.

Additionally, the United States Agency for International Development (USAID) has been involved in improving maternal and child health in Yemen. The agency-funded Systems Health and Resiliency Project (SHARP) has made strides in improving maternal and child health services in 14 districts across three governorates. SHARP has reached more than 1.8 million Yemeni people with activities aimed at improving their health. The project has trained and partnered with community midwives, reproductive health volunteers, health facility workers and community members to provide essential health care and support.

Conclusion

Addressing Yemen’s maternal health and poverty crisis requires urgent via coordinated international assistance. Many organizations have contributed to aid and support, but the scale of the issue is demanding and requires a greater response to save lives and break the cycle of poverty and ill health.

– Hannah Ravariere-Moakes

Hannah is based in London, UK and focuses on Politics and Global Health for The Borgen Project.

Photo: Flickr

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3 Innovations Reducing Poverty in Kosovo

3 Poverty Reduction Innovations in KosovoThe Republic of Kosovo lies in Southeast Europe, bordering Albania to the southwest and Serbia to the North. The nation has struggled with poverty over the years. According to the BTI project, Kosovo is one of the poorest countries in Europe, with more than 40% of Kosovo’s population of 1.67 million living below the poverty line. The nation faces high unemployment rates in an economy heavily dependent on remittances from its diaspora, leaving it vulnerable to economic shifts abroad and rising corruption levels. However, recent initiatives by the government and various organizations have successfully reduced poverty rates in Kosovo.

Economic Growth

According to the World Bank, since declaring independence in 2008, Kosovo has experienced a 50% increase in per capita income and a 35% decrease in poverty. Instead of relying on foreign aid for economic growth, the government has increased investments, with help from projects and a stronger financial system. Kosovo has also faced challenges like inefficient economic management and a weak government, which have impacted the economy’s growth.

As a result, the Kosovo Economic Governance Activity (KEGA) was implemented, which is a five-year initiative funded by USAID to help the Kosovo government make reforms in policies to promote growth in the private sector and strengthen public financial management. This initiative resulted in €1.2 billion in formalized buildings that secured citizens’ property rights and an 86% increase in tax revenues, rising from €457 million in 2018 to €852 million in 2023. 

Decrease in Unemployment

Focus Economics reported the rate of unemployment in 2019 at 26.7%, and in 2023, it decreased to 10.9%. This rapid decrease resulted from initiatives such as the electronic platform K-GenU, which UNICEF launched to provide opportunities for Kosovo youths to access paid internships and to establish connections with employers. The platform helps young people with skills in job searching. Another initiative by UNICEF, Generation Unlimited, prepares young people for the labor market and has provided internships for around 500 young people in 57 businesses.

Social Protection Initiatives

Many people in Kosovo do not have access to health care, education and protective services. This is due to the ineffective programs to help reduce this shortcoming. To combat this, UNICEF increased support for the Law on Social and Family Services, which aims to broaden services and ensure that everyone in need has the right to access these services. UNICEF in Kosovo also focuses on ensuring that policies that are aimed at aiding children lead to real change in their lives. This involved planning and managing the money for certain programs and directly helping municipalities to ensure that children most in need are receiving the help. 

Moving Forward

While Kosovo faces challenges ranging from high rates of unemployment and ineffective social programs, the Kosovo government and international organizations have taken successful steps to tackle this problem. The World Bank reports on a new strategy called the Country Partnership Framework (CPF) for Kosovo for the years 2023 to 2027. This aims to help the country improve its economy over the next five years to create more jobs and improve living standards. 

– Nouf Hunaiti

Nouf is based in Rancho Cucamonga, CA, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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4 Estonian Organizations Making a Difference

Estonian OrganizationsEstonia, a northeastern European country north of the three Baltic states, features about 1,500 islands and islets. Unlike many European countries, Estonia has the third-highest percentage of immigrants, predominantly from Russia. According to Eurostat, Estonia had 37 immigrants per resident in 2022. In 2022, during the full-scale invasion of Ukraine, Estonia responded by offering refugees temporary protection and access to employment and public services. In 2023, Estonia contributed approximately $109.3 million in Official Development Assistance (ODA), which the OECD iLibrary reports as a 52.4% decrease. However, Estonian organizations and officials have developed policies aimed at enhancing their support to other countries and providing humanitarian aid to eradicate poverty.

Estonian Refugee Council

The Estonian Refugee Council assists refugees globally by providing humanitarian aid, including food and security, support services, mental health services and community services. It also raises awareness about the challenges refugees face in their home countries. The council operates three main programmatic areas with several subprograms focused on education and awareness, entrepreneurship and multi-purpose cash assistance. These programs aim to enhance communal and mental well-being, financial stability and emergency security for refugees. The council has supported more than 293,000 Ukrainian refugees and recently initiated a campaign to aid those affected by the conflict in Lebanon.

Estonian American Fund

The Estonian American Fund or Eesti Ameerika Fond, supports educational, medical and scientific advancements in Estonia by providing equipment and supplies to institutions such as clinics and hospitals. The fund focuses on three core missions: health care, education, and institution building. In health care, the fund has enabled access to drugs and nursing supplies for 7,500 patients, with grants totaling about $18,817. In education, it has allocated $26,068 to train physicians abroad in their chosen specialties, covering education, travel, and living expenses. The institution-building project has received $14,400 to support the construction of hospitals and research centers, including the Estonian Women’s Studies and Research Centre.

UNHCR Estonia

Since Estonia is a member of the European Union (EU), which is one of the three major governmental partners of UNHCR, it hosts a branch of the organization. As part of the Nordic and Baltic regions, Estonia focuses its efforts with UNHCR on supporting governments in European and international legislation concerning asylum, international protection and statelessness. This commitment enables refugees to apply for asylum and gain access to countries in the Nordic and Baltic areas, including Estonia. Additionally, UNHCR in Estonia collaborates with the government, local authorities, NGOs and the media to safeguard refugee rights.

Estonian Foodbank

The Estonian Food Bank, a subsidiary of the German organization Riesenkampff Stiftung, was established in 2010 to combat poverty and food waste. It secures agreements with Estonian organizations, food producers, importers, supermarkets and the EU’s food aid program to supply food to the less fortunate. The food bank trains workers and volunteers to distribute food, organizes local food gatherings in its stores, runs charity campaigns and engages in numerous cooperative projects with other organizations within Riesenkampff Stiftung.

Looking Ahead

Estonia remains committed to supporting both local and international humanitarian efforts through a variety of initiatives. By providing aid to refugees, improving health care and education and addressing food insecurity, Estonia plays an active role in alleviating global challenges. Despite facing financial constraints, Estonian organizations continue to focus on enhancing the well-being of vulnerable populations. These ongoing actions reflect Estonia’s dedication to making a positive difference in global humanitarian work, ensuring assistance reaches those most in need.

– Ashley Diaz

Ashley is based in Homestead, FL, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Organizations Providing Aid to Palestine

Aid to PalestineCivilians in Palestine are facing horrific living conditions, lacking adequate housing, food and sanitation. In both the West Bank and Gaza Strip, many Palestinians are struggling with housing shortages, contaminated drinking water, minimal electricity, scarce food supplies and limited medical resources. In hopes of supporting the suffering Palestinians, many nongovernmental organizations (NGOs) are providing aid to Palestine by fundraising and transporting necessary resources. These nonprofits include Islamic Relief, Palestine Children’s Relief Fund and U.N. organizations.

Islamic Relief

Islamic Relief is dedicated to assisting the world’s most vulnerable populations. Founded in 1984 by Hany El-Banna in response to the famine in East Africa, the organization mobilized the Muslim community to support those in need, securing more than $176,000 to fund various poverty-reduction projects. From then on, the organization grew to support many other disadvantaged groups.

Today, it has lifted more than a billion people out of poverty, contributed to the increase in life expectancy and expanded access to education. Islamic Relief is currently partnering with organizations to provide aid to those in Gaza, offering hot meals, clean water, recreational activities and an orphan sponsorship program.

The Palestine Children’s Relief Fund

The Palestine Children’s Relief Fund (PCRF) is a key organization delivering aid to civilians in Gaza and the West Bank. Founded in 1991 by humanitarians in the USA, PCRF focuses on providing health care to ill and injured children who lack access to local medical services. Since its inception, the organization has sent more than 2,000 children abroad for specialized medical care. It has also provided international doctors and nurses to local hospitals at no cost.

UN Organizations

U.N. organizations, such as the United Nations International Children’s Emergency Fund (UNICEF) and the United Nations Relief and Works Agency (UNRWA), also provide aid to the Palestinian people. In Gaza, UNICEF is on the ground, distributing clean water and administering essential vaccines. The organization focuses on the suffering of children in Palestine while advocating for an immediate ceasefire and ensuring the protection and access to resources for all children.

Additionally, UNRWA provides Palestinian families with support services, such as food, water, cash assistance, education and health care. While both U.N. organizations were initially skeptical about the dire situations faced by these disadvantaged groups, rising injury and death tolls, along with the destruction of essential infrastructure, have demonstrated the extreme vulnerability of the Palestinian people and their urgent need for assistance.

Final Note

While the humanitarian crisis in Palestine persists, numerous nonprofit organizations are successfully providing aid to the people of Gaza. Much of this success is due to the countless individuals who recognize the importance of humanitarian efforts in preventing the destruction of a vulnerable population and restoring hope for a better future.

– Sophia Kharal

Sophia is based in San Jose, CA, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Pixabay

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DRC Begins Mpox Vaccination Program

Mpox Vaccination ProgramIn October 2024, the Democratic Republic of the Congo (DRC) began its official vaccination scheme against Mpox, following a nationwide outbreak. First detected in the country more than 50 years ago, Mpox is a viral infection that can cause fatal illness. The emergence of a new strain in 2023 led the World Health Organization (WHO) to declare the recent outbreak a “global health emergency” in August 2024. Two months later, following 30,000 recorded cases and more than 900 deaths as of October 2024, the DRC’s Ministry of Public Health is beginning the rollout of hundreds of thousands of vaccines as the start of its official Mpox vaccination program.

Provisions from the EU

To curb the spread of the virus, the DRC relies on the European Union (EU), donation of 265,000 MBA-BN vaccines, with the help of the U.S. Government, Gavi and Africa CDC. These vaccines require two shots administered one month apart and are available only to adults, according to UNICEF.

With a population of more than 100 million, this means there is a limited amount of doses, so officials have had to target the campaign to those most vulnerable to Mpox. So far, the campaign has focused on the country’s North Kivu and Equateur provinces, the two regions that have recorded the highest number of cases. Within these areas, the Ministry of Health will provide the doses to the most at-risk groups, such as those with existing health problems. UNICEF has coordinated the transport and delivery of the vaccines, as well as the storage and shipment across the DRC.

Further Expected Doses

Although officials in the DRC are currently working with a limited supply of vaccines, the nation has also signed an agreement with the government of Japan, which promises the supply of LC-16 vaccines. LC-16 only requires one shot for immunisation and is currently the only one that has approval for children. One of the most disproportionately impacted, children under 15 are some of the most vulnerable to the virus, accounting for 60% of all recorded cases and 80% of deaths in the DRC, according to UNICEF.

Logistical Difficulties

Alongside limited availability, officials have also faced difficulties when planning the implementation of the Mpox vaccination program itself. Vaccines must be kept as low as -20 degrees Celsius, and, once defrosted, need to be used within 40 days to be effective. Officials are therefore working with a limited time frame in which they can transport and administer doses from the central storage facility in Kinshasa. This poses particular difficulty for the nation’s more rural areas which take longer to reach, an issue that has only been exacerbated by the ongoing conflict in the DRC between the government and rebel groups. This has made access to rebel-controlled regions much more limited and therefore made the transportation of medical resources such as vaccines to these areas much more difficult.

Government efforts, educational campaigns and attempts to raise awareness about the virus, and vaccines are just some of the ways the DRC is currently working to combat the spread of Mpox. Its collaboration with international organizations has proved key to the start of the Mpox vaccination program, and further provisions from nations such as Japan will hopefully allow for the continued suppression of the virus.

– Izzy Tompkins

Izzy is based in Leeds, UK and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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RSF and SAF Roles in Sudan’s Humanitarian Crisis

RSF and SAF Roles in Sudan's Humanitarian CrisisSudan is currently experiencing a severe humanitarian crisis fueled by ongoing conflicts between the Rapid Support Forces (RSF) and the Sudanese Armed Forces (SAF). These clashes have triggered the largest displacement crisis in the world, displacing 10.7 million people and leaving approximately 26 million in dire food insecurity. While the conflict between RSF and SAF erupted in April 2023, underlying tensions have long existed. The nation was under the rule of President Omar al-Bashir from 1989 until his ouster in 2019, a period marked by rampant corruption and economic mismanagement. Following al-Bashir’s removal via a coup, Sudan established a transitional government that included both military and civilian leaders.

Historical Background and Militarization

The RSF, initially known as the Janjaweed militias, gained official recognition from the government in 2013 as an auxiliary unit of the SAF. In an interview with The Borgen Project, Professor Bakry Elmedni, President of the Sudan Studies Association and a faculty member at Long Island University, noted that initially, the RSF focused on border security. The enactment of the Rapid Support Forces Act in 2017 integrated them fully into the national armed forces, aiming to legitimize the group and define their roles in maintaining security and combating rebel factions. Post-legislation, the RSF expanded its recruitment, drawing significantly from Arab Tribes and marginalized communities. It began developing foreign relationships, receiving substantial funding from Gulf nations, notably Saudi Arabia and the United Arab Emirates. During the tenure of the joint transitional government, the RSF leader, General Mohamed Hamdan Dagalo, publicly criticized the SAF’s recruitment strategies, labeling them ineffective.

Overthrow and Intensification of Conflict

On Oct. 25, 2021, the RSF and the SAF overthrew the civilian faction of the government. Professor Elmedni explains that the RSF objected to the civilian government’s shortcomings, while the SAF sought to restore the al-Bashir regime. He adds that the SAF likely harbored resentment toward the RSF for gaining legitimacy and access to resources, intensifying existing tensions.

Civilian Impact and Response to Crisis

Both armed factions are deliberately exacerbating the humanitarian crisis in Sudan. Professor Elmedni notes that civilians are often caught in the crossfire of fighting between the SAF and RSF in urban areas, leading to widespread displacement. Additionally, these groups have been attacking civilian infrastructure and engaging in unlawful killings, with some incidents in West Darfur being ethnically targeted. “It is miserable for anyone who wants to deliver aid,” Dr. Elmedni says. Humanitarian workers face significant dangers, as they lack protection and risk their lives on duty. He also mentions that delivering aid is challenging without ceasefires and with roads blocked by checkpoints. Both the RSF and SAF are manipulating food supplies as a control mechanism by targeting regions needing humanitarian aid, looting supplies and deliberately killing aid workers.

Contributions of Humanitarian Efforts in Sudan

Due to the intense difficulties in humanitarian aid distribution and the risks faced by workers, larger organizations struggle to travel throughout the country and reach those in need. The leading humanitarian organizations are local kitchens mainly concentrated in the capital of the country, Khartoum, to help citizens dealing with food insecurity. However, larger organizations such as the Sudanese Red Crescent (IFRC) manage to support displaced people by providing necessities in major migration routes. Annually, they help 100 million people gain access to clean drinking water, sanitation and hygiene. Additionally, they offer health and emergency services, which are vital given that 70% of hospitals in Sudan are no longer operational.

Looking Ahead

Despite the challenges posed by the conflict in Sudan, humanitarian organizations continue to work to deliver aid to those in need. Local and international groups, such as the Sudanese Red Crescent, have provided crucial support, including clean water, sanitation and health services, to displaced populations. These ongoing efforts aim to alleviate the suffering of millions, offering a lifeline of hope as the country navigates this critical period.

– Floria Persis

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

Photo: Flickr

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Top 10 Sectors Attracting Foreign Investment in Nigeria

Foreign Investment in NigeriaIn Q1 2024, Nigeria’s foreign capital inflows surged to $3.4 billion, the highest since early 2020, reflecting renewed investor confidence driven by fiscal and monetary reforms. The economy grew by 2.9% in 2023, though inflation soared to 28.9% and the poverty rate increased to 46%. Foreign Portfolio Investments dominated, accounting for 61.5% of inflows, driven by Treasury bill investments. However, Foreign Direct Investment remained low at 3.5%, limited by security and infrastructure concerns in Nigeria.

The banking sector attracted $2.07 billion, but long-term investments in key growth sectors lagged. “Other Investments” rose sharply, raising concerns about reliance on foreign loans. Sustainable growth hinges on addressing exchange liquidity, boosting oil exports and improving infrastructure to attract more FDI. Nonetheless, based on first-quarter performance in 2024, here are the top 10 sectors attracting the most foreign investment in Nigeria:

  1. Banking: The banking sector led the pack with a staggering $2.07 billion in foreign investment, a 629.88% rise from Q4 2023 and a 579.19% increase compared to Q1 2023. The sector’s resilience and central role in the economy make it an attractive investment avenue for foreign capital.
  2. Trading: Trading experienced substantial growth, with $494.93 million in investments—a 645.92% increase from the previous quarter and a 440.75% surge compared to Q1 2023. The sector’s expansion showcases growing investor confidence and the increasing volume of trading activities across Nigeria’s markets.
  3. Telecommunications: Despite a 5.57% decline from Q4 2023, foreign investments in telecommunications amounted to $191.57 million in Q1 2024, an impressive 768.91% increase year-on-year. This underscores continued interest in Nigeria’s telecommunications infrastructure as digital connectivity improves.
  4. Production and Manufacturing: Although the production and manufacturing sectors saw a 57.37% decline from Q4 2023, they still attracted $191.92 million in Q1 2024. Despite ongoing challenges, this sector remains vital to Nigeria’s economic potential.
  5. IT Services: IT Services garnered $171.7 million in Q1 2024, reflecting a 1,789.75% increase from Q4 2023. However, this investment is 20.52% lower than in Q1 2023, indicating some fluctuation in investor sentiment toward Nigeria’s tech sector.
  6. Shares: Investments in the shares sector totaled $98.71 million in Q1 2024. This marked a 91.86% increase from Q4 2023. Furthermore, this is an 11.52% growth compared to Q1 2023, signaling investor confidence in Nigeria’s stock market.
  7. Financing: The financing sector attracted $75.55 million, despite a 44.29% decrease from Q4 2023 and a 36.35% decline year-on-year. Nonetheless, financing remains a critical component of Nigeria’s economic framework.
  8. Electrical: Investments in the electrical sector reached $58.93 million, marking a 15.71% increase from Q4 2023 and a 698.24% surge from Q1 2023. This reflects the growing demand for improved electrical infrastructure.
  9. Agriculture: Foreign investment in agriculture soared by 3,666.67% from Q4 2023, reaching $15.8 million in Q1 2024. This dramatic increase highlights renewed interest in Nigeria’s agricultural potential, vital for food security and economic diversification.
  10. Transport: The transport sector saw a significant rise, with investments totaling $5.05 million, up from just $0.14 million in Q4 2023—a 3,507.14% increase. Although still lower than the same period in 2023, this uptick signals a recovery in a critical sector for Nigeria’s infrastructure and connectivity.

Conclusion

Nigeria’s foreign capital inflows in Q1 2024 showcase a significant rebound, driven by the government’s fiscal and monetary reforms. These reforms are aimed at bolstering investor confidence. While the banking and trading sectors dominated foreign investment in Nigeria in 2024, key industries like telecommunications, agriculture and manufacturing also witnessed notable growth. Indeed, this underscores Nigeria’s potential as a diversified investment destination. However, the concentration of Foreign Portfolio Investments and the continued reliance on external borrowing raise concerns about long-term economic stability.

To sustain growth and attract more Foreign Direct Investment (FDI), Nigeria may need to prioritize enhancing infrastructure, addressing regulatory bottlenecks and improving the overall investment environment. If these challenges are tackled, the nation can position itself as a thriving hub for short- and long-term foreign investment. The country will be able to foster sustainable economic growth and job creation.

– Laila Alaya

Laila is based in Abuja, Nigeria and focuses on Business and New Markets for The Borgen Project.

Photo: Wikimedia Commons

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The UK’s Response to the Humanitarian Crisis in Lebanon

humanitarian crisis in LebanonThe reignition of conflict between Israel and Palestine marked October 2023. Whilst the aggression between these two regions caught the attention of the international community, the conflict also resurfaced historic tensions along the Israel-Lebanon border which has escalated to military raids and missile attacks between Hezbollah and Israel as of the end of September 2024. According to Lebanon’s Prime Minister Najib Mikati, air strikes have already displaced 1 million Lebanese citizens. This article will highlight how the U.K. responded to this new humanitarian crisis in Lebanon.

UK Government Donation to UNICEF in Lebanon

The British government announced it was donating £5 million to UNICEF to support the response to the humanitarian crisis in Lebanon. The package aims to address the needs of those displaced, including 74,000 children. To reach those displaced in Lebanon the money, sent on September 27, 2024, will go towards medical supplies, hygiene kits and fuel for water stations. The aid also includes training for emergency teams to respond to health and nutrition needs.

UNICEF currently has 35 shelters in Lebanon, which can host more than 14,000 people. Since the majority of these shelters are public schools the rising conflict has disrupted children’s learning. Despite this, UNICEF has delivered 26,380 liters of bottled water, 2,900 sleeping bags and two large high-performance tents to support demands for shelter.

The Development Director and Deputy Head of Mission at the British Embassy Beirut, Victoria Dunne welcomed the news on the UNICEF donation and stated: “We are profoundly saddened by the civilian deaths in Lebanon. The number of casualties and the scale of displacement is distressing…The U.K. has been and will remain a strong supporter of Lebanon.”

Poverty Rates and Humanitarian Crisis in Lebanon

Before the violence between Israel and Lebanon resurfaced, the country was already battling rising poverty rates. According to the World Bank, the level of poverty in the Middle Eastern country has “more than tripled over the last decade” and currently affects 44% of the population, as of May 2024. The World Bank recommends various interventions to reduce poverty in Lebanon. This includes implementing a social safety net, and macro-fiscal reforms to support price stability, allow space for social spending and make public transportation more accessible so citizens can reach public services such as healthcare.

The conflict could further damage Lebanon’s economy; the potential decline in tourism rates could produce a $450 million loss alongside the real estate and foreign direct investment sector, totalling $550 million in losses. This bleak economic forecast resulting from this conflict could exacerbate pre-existing poverty and humanitarian crisis in Lebanon unless a strong infrastructure and aid can support vulnerable citizens.

The UK’s Role in Lebanon’s Development

The U.K. has long played a role in assisting in social and economic development in Lebanon. This includes trade deals such as an agreement in 2019 between the two countries which led to Lebanon becoming the U.K.’s 100th largest trader in 2022.

Lebanon has also been a key beneficiary of the U.K.’s Official Development Assistance (ODA) program receiving £804 million from 2010-2021, where 94% was given for humanitarian purposes. The U.K. also led a Community Stability Program to alleviate tensions between Lebanese and refugee communities by strengthening institutional responses to community conflict.

The Conflict Moving Forward

Though it is unclear how long the conflict between Lebanon and Israel will last, the rates of death and internal displacement are continuously increasing. As of September 10, 2024, the death toll from Israeli attacks was 589. However, since then the number of casualties and displaced persons has increased as Israel has carried out around 1,600 strikes in Lebanon whilst Hezbollah has launched 200 rockets towards Israel.

The U.K.’s legacy of humanitarian and development support to Lebanon should indicate that the British government will continue to provide humanitarian assistance to Lebanon should the crisis continue. The donation of £5 million to UNICEF will help international organizations working in the country to house the displaced and protect vulnerable groups such as children.

– Sofia Brooke

Sofia is based in Oxfordshire, UK and focuses on Politics for The Borgen Project.

Photo: Flickr