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Jasiri Gender Bond: Women-Led Businesses in Tanzania

Jasiri Gender BondTanzania has seen its economy boom over the last couple of years. The country’s revenue is primarily derived from agriculture and the service industry. However, industries such as small and micro enterprises (SMEs) and small, micro and medium enterprises (SMMEs) are rising in Tanzania, adding more fuel to the country’s growing economy. More than 50% of these enterprises are owned or led by women.

However, a large majority, nearly 99%, are considered micro. Women-led businesses often face several challenges when scaling, including minimal access to funding and capital. FSD Africa’s new Jasiri Gender Bond program aims to help these businesses grow and empower more women to become entrepreneurs.

What Is a Gender Bond?

Gender bonds aim to bridge the funding gap that women-owned businesses face by supporting companies owned by women or employing a significant percentage of women. These bonds are typically issued by private corporations or banks, not governments.

In Tanzania specifically, women earn just $0.73 for every $1 earned by men. urgent need for initiatives like the Jasiri Gender Bond program, which seeks to promote economic equity and empower women entrepreneurs.

These bonds are crucial because many other standard forms of gaining funding for women-led businesses in many countries are either unavailable or rejected based on prejudices.

FSD Africa: Supporting Africa’s Economy

With U.K. aid help, this nonprofit supports all aspects of Africa’s financial markets. FSD Africa has more than 30 different programs spanning the entire continent, with specialized financial experts helping people and businesses navigate these challenging and complex economies. FSD Africa is committed to and focused on inclusion, sustainability and improving gender equality within the financial and entrepreneurial sectors.

In 2021, the organization started its “Finance for a Sustainable Future Strategy.” Since then, it has created more than 10,000 jobs, 34% for women, while reducing more than 4.5 million tonnes of carbon emissions. In 2022, the initiative launched its Jasiri Gender Bond in Tanzania, marking the start of its efforts to support women-led businesses in the country.

The Jasiri Gender Bond

FSD Africa’s Jasiri Gender Bond is the first in sub-Saharan Africa. It targets the growing number of women-led SMEs and SMMEs in Tanzania, where more than half are owned or run by women. Despite their significance, female entrepreneurs in Tanzania still face significant limitations when starting, sustaining or scaling their businesses. One of the biggest challenges is access to funding from traditional sources like banks, as many women lack collateral, such as property.

The Jasiri Gender Bond offers a more inclusive alternative to traditional lenders. It supports established women-led businesses and empowers companies with 30–50% female employees. Gender inclusivity remains central to the initiative’s mission. The bond also provides a lower interest rate (14%) than the current market average (19%), giving these women-led businesses a leg up, allowing for quicker growth and less financial burden.

The bond proceeds don’t just go into the pockets of a bank; they are invested back into NMB Bank’s Women Market Proposition to continue empowering women entrepreneurship.

Long-Term Benefits

The Jasiri Gender Bond will have a lasting effect on the Tanzanian economy. By bolstering the growing number of women-led SMEs and SMMEs, the bond will help bring more women into the workforce. Furthermore, the bond will provide more secure and equal-paying jobs. This will help reduce poverty.

FSD Africa has provided more than 3,200 loans to businesses, 97% of which are women-owned, helping to create jobs and increase female participation in the workforce. With SMEs and SMMEs projected to contribute 27% of Tanzania’s gross domestic product (GDP), women remain central to this growth.

The Gender Bond plays a crucial role in narrowing the wage and employment gap while empowering women-led enterprises.

– Collier Simpson

Collier is based in Savannah, GA, USA and focuses on Business and Good News for The Borgen Project.

Photo: Pexels

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Levant Startups Drive Innovation Amid Instability

levant startups Levant startups are reimagining how innovation can emerge in crisis-prone economies. Despite widespread poverty and instability, entrepreneurs in Jordan, Lebanon, Syria, and Palestine are launching ventures that tackle problems in education, finance and basic services. These efforts are fostering grassroots economic resilience and drawing attention to a region long underestimated by global observers.

Background

As of 2024, poverty in the Levant region remained high. Poverty affects 44% of Lebanese, 69% of Syrians, 24.1% of Jordanians and around 74% of Palestinians. Many countries in the Levant region also struggle with acute food insecurity, including 13 million out of 25 million Syrians and 91% of Palestinians. Meanwhile, Lebanon faces widespread malnutrition because of constant shortages of essential food items.

Debt, inflation, wars and unemployment significantly contribute to poverty in the Levant. Female economic participation is still a challenge in the region. In Jordan, the female unemployment rate rose to 33%, standing 11% higher than the overall unemployment rate. However, entrepreneurship in the Levant is helping to alter these statistics.

The region has faced ongoing pressures from citizens who are unable to afford necessities and governments with overwhelming amounts of debt. Soaring unemployment and inflation have exacerbated the crisis and rendered many countries unable to rebuild after wars and conflicts. Yet amid these challenges, new startups are tackling local problems by offering practical solutions to problems in the education, finance and food delivery industries, and laying the groundwork for broader economic transformation.

Notable Startups in the Levant

Founded in 2016 by Siroun Shamigian and Nisrine El Makkouk, Kamkalima in Lebanon is an education technology startup that provides a digital curriculum companion for Arabic language education. It offers e-learning modules and assessments for students in grades 4-12. The service also enables teachers to track student progress using advanced data analytics. The founders noticed that Lebanon’s Arabic education system lacked the digital tools needed to bolster students’ Arabic grades, which were consistently low. Kamkalima empowers teachers with data analytics tools to enhance lessons and track students’ progress, while providing students with interactive tools to aid their writing, reading, and listening skills in Arabic.

Large enterprises struggle with transparency, efficiency and data accuracy in a region where invoicing processes are often manual, error-prone, and non-compliant with evolving regulations. A Jordan-based team of seasoned FinTech professionals founded InvoiceQ, an SaaS-based digital invoicing platform that meets the needs of businesses in Saudi Arabia, Jordan and Oman. InvoiceQ offers real-time, automated invoicing, with approval workflows, API integrations and two-way customer/vendor integration. The platform enables enhanced decision-making, reduces human error and turns invoicing into a strategic financial tool.

In Syria, infrastructure for digital services like food delivery, e-commerce and mobility was virtually nonexistent until Malek Al-Muzayen established Bee Order. It began as Syria’s first food delivery app. Before Bee Order, restaurants lacked delivery drivers, online ordering was unfamiliar and economic instability made tech development risky. Al-Muzayen built and scaled a local fleet of 150 delivery vehicles, introduced mobile-based ordering, and later launched a ride-hailing app called Wasilni to meet transportation needs.

Levant Startups: Innovation in the Face of Instability

Despite entrenched economic hardships, startups across the Levant are helping communities adapt and thrive. From enhancing Arabic education through Kamkalima, to digitizing financial operations with InvoiceQ, to launching the region’s first food delivery and ride-hailing services via Bee Order and Wasilni, entrepreneurs are responding to local needs with scalable, tech-driven solutions. These ventures reflect a broader shift; young founders are tackling systemic issues with creativity and resourcefulness, even in the context of conflict and economic instability.

Other promising ventures include Tajir.Store, a Syrian e-commerce platform helping businesses to automate their online store operations, and Rocheta, a health care app that connects patients with pharmacies to have medications delivered to their homes. Together, these startups are weaving a grassroots foundation for more inclusive economic participation and long-term resilience in the region. As they continue to grow, they are not only meeting immediate needs but also laying the groundwork for broader transformation in education, finance, commerce and mobility.

– Haley Parilla

Haley is based in Cape Coral, FL, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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How Savings Groups in Uganda Drive Poverty Reduction

How Savings Groups in Uganda Drive Poverty ReductionAbout 37% of adults in Uganda are members of savings groups, making the country a leader in financial inclusion across Africa. These groups, which pool resources and provide loans to members, have gained popularity globally, with many adopting digital tools to enhance security and efficiency. Savings groups are particularly vital in impoverished and rural areas, offering financial services where banks and other institutions are inaccessible or nonexistent. With more than 1.4 billion people worldwide lacking access to formal financial systems, these groups offer a lifeline for promoting financial inclusion and reducing poverty. In Uganda, the community-driven model has become a powerful tool for building resilience and strengthening communities in the fight against poverty.

Types of Savings Groups

There are three main types of savings groups and their use depends on factors such as living standards, the amount of money involved and the participation agreement among members.

  1. Rotating Savings and Credit Associations (ROSCAs). It operates on a simple principle that every member contributes a fixed amount of money, usually agreed upon before formal meetings. Once all members have contributed, the pooled funds are handed out to one person on a rotational basis. In contrast,
  2. Accumulated Savings and Credit Associations (ASCAs). ASCAs, in contrast, do not distribute funds routinely. Instead, the collected money grows over time and members can request loans as needed.
  3. Village Savings and Loan Association (VSLA). The most common type of savings group in Uganda is the Village Savings and Loan Association (VSLA), according to a survey by Financial Inclusion Insights (FII) conducted across 12 countries, including Kenya, Uganda and Nigeria. Like ASCAs, VSLAs allow members to borrow from a shared pool of funds. However, VSLAs differ by equally distributing any interest earned on loans among group members. In Uganda, 11% of individuals involved in savings groups belong to VSLAs. Additionally, 4.7% of those using VSLAs or ASCAs are more likely to live in rural communities than in urban areas, highlighting the significance of these groups in supporting rural financial inclusion.

Driving Financial Inclusion

Promoting financial education globally is essential in the fight against poverty. Savings groups offer individuals opportunities to learn about key financial concepts such as saving, interest rates and loans. These groups also bridge the gap for those without access to traditional financial institutions, providing a pathway to greater financial inclusion and stability.

The World Bank reports that about 50% of Uganda’s population has access to financial institutions. However, 37% of adults in Uganda are involved in savings groups, highlighting their importance in advancing financial inclusion and reducing poverty. Beyond financial education, saving groups empower individuals to understand various social and economic issues. They build partnerships within communities, raise awareness on critical social topics and even contribute to community building and infrastructure development. 

Empowering Women Through Savings Groups

Women face disproportionate impacts from poverty globally. At least one in 10 women live in poverty and women are seven times more likely than men to experience extreme poverty. In Uganda, savings groups play a vital role in empowering women by offering safe spaces to save money and access loans. These loans help women start businesses, provide for their families and meet personal needs, fostering financial independence and stability.

According to a survey conducted by the Fin Mark Trust across 30 countries, including Kenya, Uganda and Nigeria, Uganda has the highest proportion of women engaged in savings groups, with 39% of women participating. Gender inequality remains one of the leading causes of poverty and addressing wage gaps and promoting social benefits for women is critical in reducing poverty among women. Uganda’s savings groups act as a powerful tool in fighting against poverty among women, breaking down barriers they face in corporate, social and family life and building economic empowerment.

Challenges Facing Savings Groups

Despite their benefits, savings groups face several obstacles:

  • Resource Limitations: Many groups in rural areas lack infrastructure and secure storage systems, exposing funds to risks such as theft or mismanagement.
  • Reliance on Physical Meetings: Regular in-person meetings, while essential, can pose logistical challenges compared to the convenience offered by formal financial institutions.
  • Digital Divide: Urban savings groups increasingly use mobile money and digital tools, but rural groups lack access to digital infrastructure, hindering modernization and long-term sustainability.

A more pressing challenge for savings groups is the need to adopt digitized systems. While urban savings groups have started using mobile money and other digital tools, rural communities often lack the necessary digital infrastructure. This gap highlights a growing divide and raises concerns about the long-term sustainability of savings groups in an increasingly digital world. Tackling this issue will require innovation within savings groups and proactive government initiatives to expand digital infrastructure in Uganda’s rural areas.

Sustainability Through Innovation

Organizations like Plan International play a pivotal role in strengthening savings groups. By introducing mobile money and secure savings solutions, it addresses critical challenges and improves efficiency. Plan International, for instance, has supported 1.5 million individuals across 76,000 savings groups in 28 countries, demonstrating the potential for scalable solutions.

Moving Forward

Savings groups in Uganda are transforming lives by providing financial inclusion, empowering women and fostering community resilience. These groups offer a lifeline for individuals lacking access to formal financial systems, enabling them to save, borrow and invest in their futures. While challenges such as resource limitations and the digital divide remain, ongoing innovation and support from organizations and governments can strengthen the sustainability of these groups. Uganda’s savings groups serve as a global model for tackling poverty through grassroots financial solutions, demonstrating the power of community-driven change.

– Zacc Katusiime

Zacc is based in Kampala, Uganda and focuses on Business and Good News, Politics for The Borgen Project.

Photo: Flickr

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Microfinance in Egypt: A Tool to Ease Poverty

Microfinance in EgyptMicrofinance in Egypt has been used to promote financial inclusion and empower low-income individuals, particularly women. It does so by providing them with access to small loans and financial services, allowing them to satisfy their household’s needs independently. This has been supported by both government initiatives and NGOs, helping to stimulate entrepreneurship and improve livelihoods in impoverished communities in Egypt.

The Aim of Microfinance Loans

Among other things, microfinance in Egypt aims to extend loans and other financial services to women who need more collateral to access traditional banking services. The microfinance institution covers around 82% of Egyptian poor and low-income households. It not only empowers entrepreneurs and small businesses but stimulates local economies by promoting self-sufficiency and reducing poverty.

Crucially, microfinance loans have a positive effect on the household incomes of women borrowers. While women make up nearly half of Egypt’s population, they make up less than a quarter of the country’s total labour force, many of whom work in the informal sector. As a result of working for the informal sector, women often cannot access financial services, which is an issue that the use of microfinance loans could tackle.

Prioritizing Financial Inclusion

As part of Egypt’s Vision 2030, the national Egyptian government seeks to prioritize women’s financial inclusion and economic empowerment. Already, the Central Bank has begun initiatives to allow female owners of micro, small and medium enterprises (MSMEs) to be part of the formal financial system, according to the Economist Impact. This is important as the Central Bank’s policies indirectly impact the microlending system where its initiatives to enhance digital financial services and financial inclusion can heighten access to microloans for impoverished communities.

The International Monetary Fund (IMF) calculates that increasing the female labor force participation rate to the male level and increasing employment opportunities could increase Egypt’s GDP by 34%, the Economist Impact reports.

Further Developments

Additionally, to support the government’s efforts, HSBC Bank Egypt and Reefy Microfinance Enterprise Services signed a deal earlier this year to provide 150 million Egyptian pounds to micro businesses in Egypt, with one-third of that figure going towards female-led enterprises. On top of this, HSBC has pledged it will provide between $750 billion and $1 trillion dollars by 2030, to support sustainable financing, the Economist Impact reports.

Despite the significant improvements for some, a large number of old clients who have not seen an improvement in household income following the scheme, remain.

Moreover, there are operational risks such as fraud prevention and technology dependency. The risks of fraud are high considering the digital nature of many interactions whereby the implementation of robust fraud detection systems is crucial. Moreover, technology dependency appears to be another operational risk as “the increasing reliance on technology for loan disbursement and collection processes creates risks related to cybersecurity and system reliability,” according to Andersen. Other potential issues include market saturation or funding and liquidity management. Market saturation means that many “entities are competing for the same customer base,” a current example being Valu.

Overall, microfinance in Egypt offers a promising future for financial inclusion and economic empowerment, bar the potential for certain risks. By providing access to small loans and financial services, Microfinance enables individuals to meet their household needs, stimulate entrepreneurship and enhance livelihoods in underprivileged communities. The support from both government initiatives and NGOs has been extremely helpful in facilitating this process, aligning with Egypt’s Vision 2030.

– Amani Almasri

Amani is based in Durham, UK and focuses on Good News and Technology for The Borgen Project.

Photo: Unsplash

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How Supporting Poverty Eradication Benefits Global Business

How Supporting Poverty Eradication Benefits Global BusinessWith more than 700 million people worldwide living in extreme poverty—defined as surviving on less than $1.90 per day—poverty remains a pressing issue that impacts both individuals and economies on a global scale. Businesses have a unique opportunity to contribute to poverty eradication while simultaneously achieving significant benefits, including brand loyalty, sustainable growth and stronger, more resilient supply chains. Supporting poverty eradication is not only a moral imperative but also a sound business strategy that aligns with long-term corporate sustainability goals.

The Business Case for Supporting Poverty Eradication

Poverty reduction creates economic opportunities that benefit businesses in various ways. As incomes rise, more people can potentially afford goods and services, directly expanding the consumer base for companies. For instance, when businesses invest in fair wages and decent working conditions, they build a more reliable, engaged and productive workforce. Supporting poverty eradication also cultivates a positive brand reputation.

Companies actively working to reduce poverty attract consumers who value corporate responsibility, as studies reveal, consumers increasingly favor businesses aligned with social impact initiatives. Moreover, poverty eradication promotes social stability, which is essential for a thriving global economy. Poverty often correlates with social unrest, political instability and migration issues, all of which can disrupt business operations and supply chains. 

Strategies for Businesses to Support Poverty Eradication

Businesses could support poverty eradication through strategic actions focused on fair labor practices, community development and sustainable supply chains. Here are three effective strategies:

  1. Ensure Decent Work Conditions. An effective way for companies to support poverty eradication is to ensure decent work conditions within their organizations and supply chains. Decent work, as defined by the International Labour Organization (ILO), includes fair wages, safe work environments and equal opportunities for all. A business that provides fair wages and adequate social protections enables its employees to achieve a higher standard of living, which lifts entire communities out of poverty.
  2. Adopt Sustainable Procurement Practices. Businesses have considerable influence as buyers, particularly in sectors that rely on extensive supply chains. By adopting sustainable procurement practices, companies can prevent poverty-related issues within their supply chains. For instance, businesses can conduct human rights due diligence to identify potential poverty risks, such as child labor or exploitative wages and address them directly. Sustainable procurement also includes sourcing materials from ethical suppliers and prioritizing fair trade partners, which strengthens global supply chains and reduces poverty.
  3. Invest in Community Development and Education. Investing in community development programs and education can create lasting social and economic benefits. Companies that contribute to local infrastructure, health or educational initiatives improve the overall well-being of the communities where they operate. Programs that provide skills training and resources for entrepreneurship empower individuals to generate income and establish local businesses, creating a multiplier effect that stimulates the economy and alleviates poverty.

The Global Impact

The global impact of business support for poverty eradication extends far beyond individual companies or communities. When businesses commit to poverty eradication, they contribute to several Sustainable Development Goals (SDGs), including SDG 1: No Poverty. Such commitments promote economic inclusivity, gender equality and environmental sustainability, which are essential for a balanced global economy. As businesses align with the SDGs, they drive sustainable development and support the vision of a world where no one is left behind.

Supporting poverty eradication is also critical in addressing urgent global challenges such as climate change and migration. Poverty often forces people to rely on environmentally harmful practices like deforestation and overfishing, which exacerbate climate change. Additionally, poverty-driven migration can strain resources in neighboring regions, creating humanitarian crises. By helping eradicate poverty, businesses play a role in mitigating these interconnected issues, making a significant contribution to global stability and resilience.

A Sustainable Future Built on Poverty Eradication

Supporting poverty eradication is good for business and it fosters a sustainable future where companies, communities and economies can potentially thrive. Businesses that prioritize fair labor practices, ethical sourcing and community development enhance their reputation and build a loyal consumer base while contributing to global stability. By embracing these strategies, companies play a crucial role in creating an equitable world, ensuring a positive legacy that supports economic and social progress for generations to come.

– Olivia Barker

Olivia is based in Guildford, Surrey, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Supporting Rural African Women Entrepreneurs

Women’s Business Centres: Supporting Rural African Women EntrepreneursIn rural Africa, the poverty rate stands at 17.2%, more than triple the urban rate of 5.3%, according to the United Nations (U.N.). More than half of Africa’s women reside in rural areas and “significantly contribute to Africa’s agriculture and rural enterprises, fueling local and global economies,” as reported by the U.N. Rural African women encounter more challenges than men in agriculture, including issues related to resource control, access to financing and ownership of livestock and land. Self Help Africa’s (SHA) Rural Women Empowerment (RWE) project is actively working to address these challenges by establishing Women’s Business Centres, thereby investing in efforts to alleviate poverty in rural Africa.

The Return on Investing in African Women

According to the U.N., research indicates that when women work globally, they typically reinvest up to 90% of their earnings into their families’ and communities’ health, nutrition and education, compared to men who reinvest up to 40% of theirs. More than half of Africa’s women reside in rural areas, where they play a “key role” in enhancing the livelihoods of their households and communities, the U.N. notes. Thus, investing in gender equality and expanding opportunities for rural African women directly contributes to the development and alleviation of poverty in rural Africa.

Launch of SHA’s Rural Women Empowerment Project

SHA, an international development organization based in Dublin, Ireland, launched its RWE project in early 2023. This five-year strategy aims to alleviate poverty, social inequality and hunger through community-led, market-based and enterprise-focused approaches, according to its website. The RWE project represents the second phase of an initial effort titled “Scaling Rural Women Entrepreneurs for Community-Led Digital Adaptation and Resilience in Africa,” which concluded in December 2023. The German Agency for International Cooperation (GIZ) funds the project.

Expansion and Impact of Women’s Business Centers

The project now focuses on empowering rural African women entrepreneurs by providing support in financial literacy, digital learning, product market development and more. It works closely with women entrepreneurs to connect them with new opportunities in fields like agriculture and nutrition while integrating their existing business practices. By establishing Women’s Business Centres (WBC), the RWE initiative helps women enhance their innovation skills and build economic independence and digital capabilities.

The WBCs provide startup support and train rural African women on digital business strategies and social media marketing. They also provide networking communities for women entrepreneurs and those planning to launch new businesses. The centers serve as both business incubators and vibrant communities where women business owners can connect and learn about nutrition, health care, finances, savings and more. The WBCs are “transforming lives, not just for the women involved, but for their families and communities at large,” states SHA’s website.

Successful Outcomes Across Kenya, Nigeria and Malawi

Since June 2023, the RWE project has supported almost 2,000 rural African women entrepreneurs in Kenya, Nigeria and Malawi and has established 90 WBCs in the three countries. In Kenya and Malawi, the RWE and WBCs share the same goals. Through the project, 13,600 women in Malawi and 4,000 women in Kenya have accessed information, services and resources related to nutrition and digital literacy.

At WBCs in Nigeria, women are trained to produce and market “Tom Brown” — a traditional Nigerian food supplement made from locally sourced produce such as soya beans, corn, groundnuts and millet. The supplement has a high nutritional content — it supports weight gain, prevents malnutrition and is particularly beneficial for babies, children and breastfeeding women. It is commonly eaten as porridge for breakfast. More than 400 Nigerian women have been trained to prepare Tom Brown with locally produced ingredients across 20 WBCs in Nigeria.

“Due to the training I received here, I know how to talk to the customers and draw their attention to the goods that I have. It can boost your energy and appetite for food, especially for people in hospital, it’s very good for them,” Bridget Beekombo, a producer, seller and consumer of Tom Brown, told SHA. By establishing WBCs in rural Africa, SHA’s RWE project is empowering women to shine as innovative leaders and entrepreneurs. The project is, in turn, investing in the poverty alleviation and economic and social development of Africa’s rural areas, placing rural African women at the helm.

Looking Ahead

Self Help Africa’s Rural Women Empowerment project actively supports rural African women by providing essential resources and training through Women’s Business Centres. These centers equip women with financial literacy, digital skills and market development strategies, fostering economic independence and innovation.

– Ahna Fleming

Ahna is based in Minneapolis, MN, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Microfinance: Firms Providing Small Loans to Fight Poverty

Microfinance: Firms Providing Small Loans to Fight PovertyMicrofinance provides small loans, savings, insurance and other financial services to underbanked individuals, families, entrepreneurs and small businesses that lack access to conventional financial sources. The 2023 Microfinance Social Performance Report by BNP Paribas reports that 156.1 million borrowers globally benefited from these services in 2022. Here are three companies that offer small loans to fight poverty, along with success stories of people who have used these loans to expand their businesses.

KIVA and Rachel’s Story

Kiva offers banking services to the international community, functioning similarly to a crowdfunding platform. As a lender, individuals can browse various projects globally and choose whom to lend to. In 2023, Kiva facilitated loans for more than 190,000 people, distributing more than $176 million with an impressive 96.2% repayment rate. Additionally, Kiva has partnered with Novica, an e-commerce platform that allows people in developing communities to sell their products internationally. This partnership has generated more than $130 million for individuals, enabling them to share their skills and products worldwide and drive tangible change.

Rachel, who grew up attending the Odwira Festival in Abiriw, Ghana, was captivated by the colorful garments and accessories celebrated during the harvest. Inspired, she learned to create similar items from a friend and began selling her wares. Although she experienced modest growth, Rachel sought to accelerate her business. Partnering with Kiva, she received $100 from four donors, which she used to buy raw materials, effectively doubling her production and profit. Rachel now employs others, imparts valuable skills and runs outreach programs that teach underprivileged youths how to make tie-dye and batik at no cost.

Micro-loan Foundation and Lydia’s Story

The Micro-loan Foundation has been empowering women in Malawi, Zambia and Zimbabwe since 2002 by providing business training and small loans. To date, it has assisted more than 450,000 women, enhancing food security, health care access and educational opportunities and boosting women’s roles in their communities. Lydia, a single mother of four and caregiver to her mother-in-law, turned her passion for baking into a sustainable business. With a micro-loan of 500 Kwacha (about $30), she invested in her bakery, quadrupling her daily bread production and significantly boosting her income. This increase allowed Lydia to reinvest in her business, repay her loan and improve her family’s living standards while contributing more to her community.

BRAC and Sharmin Akter

BRAC, originally an NGO in Bangladesh, has evolved to provide small loans aimed at alleviating poverty and promoting financial inclusion. Since 2023, BRAC has disbursed more than $6 billion in loans, mainly focusing on women, who constitute 90% of its beneficiaries. These ongoing efforts empower women and address the root causes of poverty, particularly in urban areas of Bangladesh.

Sharmin, who worked for a decade in a toy factory, acquired valuable skills that she leveraged to start her own business. Her high-quality toys quickly garnered demand, but she struggled to keep up with growth. Realizing the need for investment, Sharmin secured a $3,750 loan from BRAC to purchase 12 new sewing machines. This capital infusion allowed her to expand production by hiring staff and increasing output. At the moment, Sharmin’s business is one of the largest soft toy manufacturers in South-West Dhaka.

Looking Ahead

Small loans continue to play a crucial role in the fight against poverty and economic empowerment worldwide. Success stories like those of Rachel, Lydia and Sharmin highlight the transformative potential of these financial services. As microfinance institutions like Kiva, the Micro-loan Foundation and BRAC expand their reach, they can potentially create sustainable livelihoods and foster economic growth in underbanked regions.

– Philip Mundy

Philip is based in Bristol, UK and focuses on Good News for The Borgen Project.

Photo: Unsplash

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Economic Growth and Trade in India

The Transformative Impact of Trade on Economic Growth in IndiaIndia has transformed from a minor player to a formidable economic force in the global market over seven decades. The country’s trade journey reflects resilience, strategic foresight and transformative policy shifts. Starting with a modest trade volume in 1950, foreign trade in India has surged to about $776 billion in recent years.

Evolution of India’s Trade Policy

After gaining independence in 1947, India implemented a protectionist trade policy to foster domestic production and self-reliance, heavily regulating industries and maintaining high import barriers. This strategy emerged from India’s colonial history and its pursuit of economic independence. By 1948, India’s merchandise exports exceeded $1 billion, dominated by jute, cotton, oil seeds and tea, while imports focused on food grains and basic consumption goods. From the 1950s to the late 1980s, India operated under the ‘licence raj’ system, which required businesses to secure permits and adhere to production quotas. By the 1980s, the drawbacks of this model became evident, as the economy grew at a mere annual average GDP rate of 3.6% and the trade deficit widened significantly.

Shift Toward Economic Liberalization

In 1991, facing a severe balance of payments crisis, India dismantled the licence raj, liberalized trade and shifted toward a market-oriented economy. This change opened India to global trade and investment, sparking rapid growth in the services sector, especially information technology. In 1999, a World Trade Organization ruling required India to remove remaining import restrictions on consumer goods, further enhancing trade and economic efficiency. These reforms contributed to accelerated economic growth and significantly reduced poverty.

Impact of Recent Policies

The Foreign Trade Policy (FTP) of 2004-09 launched initiatives to support economic sectors, introducing the Vishesh Krishi Upaj Yojana for agricultural exports and the SEZ Act of 2005 to boost exports. However, the 2008 financial crisis significantly impacted global trade, leading to a decline in India’s exports. In response, the 2009-2014 FTP aimed to diversify exports to stabilize and reverse the downturn. Despite becoming the world’s fifth-largest economy in 2019, India recently adopted a more protectionist stance with initiatives like Atmanirbhar Bharat (Self-Reliant India) to reduce the trade deficit and promote domestic industries, while still seeking to attract foreign direct investment and integrate into global value chains.

Looking Ahead

Trade has significantly boosted India’s GDP growth, job creation and poverty reduction, yet challenges persist. The trade deficit, intense global market competition and the need for infrastructure improvements continue to be prominent issues. Moreover, bureaucratic red tape hampers economic progress and the COVID-19 pandemic has intensified these ongoing challenges. Despite these obstacles, India remains committed to trade reform and economic liberalization, promising sustainable development and inclusive growth across all societal segments.

– Sandeep Kaur

Sandeep is based in Manchester, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Social Enterprises in Colombia

Social Enterprises in ColumbiaColombia is witnessing a transformative wave of social enterprises addressing pressing social issues while generating employment and reducing poverty. These innovative businesses are tackling critical challenges such as waste management, economic inclusion and sustainable agriculture, all while creating jobs and improving the quality of life for many Colombians. 

Tackling Waste with Innovation

Conceptos Plásticos is a leading example of innovation in waste management and housing solutions. This enterprise transforms plastic waste into building materials for affordable housing. In 2018, Colombia produced approximately 14 million tons of municipal waste daily and only 17% is recycled. Conceptos Plásticos reduces plastic pollution, creates jobs and provides sustainable housing solutions for low-income families. The company has already built more than 1,500 homes using recycled plastic. By converting plastic waste into a valuable resource, Conceptos Plásticos significantly impacts both environmental sustainability and social welfare.

Promoting Economic Inclusion

Fundación Capital is another notable enterprise making strides in Colombia. This organization focuses on economic inclusion by offering financial education and digital tools to low-income individuals. In Colombia, approximately 30% of the population lives below the poverty line. Fundación Capital’s initiatives help individuals manage their finances and improve their livelihoods. The organization has reached more than six million people across Latin America with its programs. By empowering people with the knowledge and tools to achieve financial stability, Fundación Capital plays a crucial role in reducing poverty and promoting economic growth. The initiative highlights the importance of financial literacy in achieving long-term economic sustainability.

Advancing Sustainable Agriculture

SiembraViva, a Colombian social enterprise, addresses environmental sustainability and agricultural innovation. Agriculture accounts for about 6.3% of Colombia’s GDP, with many small farmers struggling to maintain sustainable practices. SiembraViva supports small farmers by providing technology and promoting sustainable farming practices. These ongoing efforts improve crop yields and reduce the environmental impact of agriculture. The enterprise has supported more than 1,000 farmers, reducing waste from 30% to 5% and guaranteeing farmers an income. By focusing on sustainable methods, SiembraViva helps ensure that farming practices contribute to long-term ecological health.

The Broader Impact

These social enterprises in Colombia illustrate the powerful role of entrepreneurship in driving social good. By tackling critical issues such as waste management, economic inclusion and sustainable agriculture, these social enterprises are creating jobs and improving the quality of life for many Colombians. Colombia’s unemployment rate, which stood at 11.3% in 2024, underscores the need for job creation initiatives. The innovative solutions provided by Conceptos Plásticos, Fundación Capital and SiembraViva demonstrate the potential of social enterprises to transform economies and uplift communities. As Colombia continues to support and nurture these initiatives, the positive impact on society is expected to grow, contributing to a more sustainable and inclusive future.

– Chelsea Rasool

Chelsea is based in Stirling, Scotland and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

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The Mattei Plan: Italy’s Billion-Dollar Investment Plan in Africa

The Mattei Plan: Italy's Billion-Dollar Investment Plan in AfricaItalian Prime Minister Georgia Meloni announced the Mattei Plan during the Italy-Africa summit in 2024—a billion-dollar investment initiative aimed at transforming Italy’s foreign aid policy, generating significant profits for Italy and effecting real change in Africa. The Mattei Plan aims to reduce immigration by improving living conditions in the countries from which many immigrants originate and by curbing the spread of radical Islamism in sub-Saharan Africa. The pilot project will launch in nine countries: Algeria, Côte d’Ivoire, Egypt, Ethiopia, Kenya, Morocco, Mozambique, the Republic of Congo and Tunisia, with an initial investment of €5.5 billion.

The pillars of the program

The Mattei Plan has six focus areas to guide its efforts:

  1. Education and Training. This pillar emphasizes improving educational systems by providing teacher training, refreshing curricula and launching new vocational courses that meet labor market demands. It encourages collaboration with businesses, particularly Italian ones and draws inspiration from Italy’s successful small and medium-sized enterprise model.
  2. Agriculture. The focus here is on reducing malnutrition, fostering agricultural value chains and supporting the development of sustainable biofuels. Key initiatives include promoting family farming, preserving forests and addressing climate change through comprehensive agricultural strategies.
  3. Health. This focus area aims to enhance health services by improving access to quality care for mothers and children. It seeks to build local capacities in health care management, training and research and to implement measures to prevent and manage health crises such as pandemics and natural disasters.
  4. Energy. The goal of this strategic pillar is to transform Italy into an energy gateway between Europe and Africa. Efforts will concentrate on the climate-energy connection, promoting energy efficiency and renewable energy. The plan includes accelerating the shift to renewable electricity, improving energy infrastructure and fostering local energy technology innovation through the establishment of innovation centers.
  5. Water. Initiatives under this pillar include drilling solar-powered wells, maintaining existing water sources, investing in water distribution networks and educating communities about the importance of clean drinking water.
  6. Infrastructure. This pillar supports all other areas by developing both physical and digital infrastructure, ensuring the effective implementation of the plan’s various initiatives.

Collaboration is key

This project will be implemented through a collaboration involving various stakeholders from the Italian government—including multiple Ministries and the Italian Export Credit Agency—as well as from the private and civil society sectors. A notable aspect of the Mattei Plan, which has garnered praise, is its inclusive approach; unlike previous initiatives, it will not be enacted unilaterally from the top down. Instead, African leaders will play an active role in executing the programs, with partners jointly designing key goals and targets.

Evidence of this collaborative approach was visible when 21 African Heads of State and Governments attended the summit where the plan was announced. Additionally, the presence of European Union President Ursula von der Leyen highlighted significant European interest in this innovative, collaborative investment approach in Africa. This integrated approach can deliver short-term goals but also identify areas in which other already existing programs can come in and improve. This comprehensive, cooperative format of the Mattei Plan is original and can change the structure of Italy’s international partnerships. 

Benefits for Europe

Italy stands to gain significantly from the Mattei Plan, especially through its “Energy” pillar. Italy aims to become a key energy supplier to Africa, with the state-owned oil and gas company ENI, already a major player in Africa, expecting high returns from the plan. The plan is named in honor of ENI’s founder, Enrico Mattei. Additionally, water services management company ACEA and oil company ENEL are exploring opportunities in Africa related to the environment and energy sectors.

During another meeting involving stakeholders of the Mattei Plan, African Development Bank director Dr. Akinwumi Adesina highlighted the benefits of Italy’s investment in Africa. The continent is home to six of the 10 fastest-growing economies and has the fastest-growing middle class. It also has the highest concentration of the global population under 35 years old, with 75% of the continent’s population below that age.

Looking Ahead

The Mattei Plan, with its €5.5 billion initial investment, aims to transform Italy’s foreign aid policy and foster significant economic and social development in nine African countries. By focusing on key areas such as education, agriculture, health, energy, water and infrastructure, the plan seeks to improve living conditions and reduce migration pressures. Collaborative efforts involving African leaders, European stakeholders and Italian businesses underscore a new model for international partnerships, poised to benefit both Africa and Italy.

– Clara Tripodi

Clara is based in Salvador, Brazil and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr