Archive for category: Business

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The Most Powerful Anti-Poverty Tool? Competition Policy

Competition PolicyFighting poverty requires smart policy intervention. In 2023, the Organization for Economic Cooperation and Development advised competition authorities to prioritize essential markets that take up large portions of family budgets. In 2025, the World Bank’s Competition Advocacy Contest highlighted reforms in Georgia, Egypt and Mexico for producing measurable consumer benefits. Together, these cases show how competition policy can support poverty reduction.

Georgia: Market Concentration vs. Pharmaceutical Reform

Prior to 2022, Georgia’s pharmaceutical market exposed families to extremely high medicine prices. Connections between pharmaceutical wholesalers and retail pharmacy chains allowed a small number of companies to hold significant market power, with markups on some essential medicines ranging from 2,000% to 3,000%. Without safeguards such as mandatory generic prescribing, generic drugs could even cost more than brand-name alternatives. According to the World Bank, 9.4% of Georgia’s population lived below the national poverty line in 2024.

Between 2022 and 2025, the Georgian Competition and Consumer Agency introduced major reforms, including mandatory generic prescribing, digital price tracking and stronger quality controls. In August 2025, regulators identified eight companies with dominant positions and fined four for abusing their market power to impose unfairly high medicine prices. These interventions produced significant results. Average medicine prices fell by 40% to 45%, returning an estimated $73 million in annual savings to households. Lower out-of-pocket health expenses increased families’ real purchasing power, leaving more income available for other necessities. More affordable medicine can also help people protect their health, remain productive and keep children enrolled in school. This shows how competition policy and poverty reduction can be connected through lower prices for essential goods.

Egypt: Educational Exploitation vs. Antitrust Enforcement

Prior to 2023, Egypt’s education market was affected by anticompetitive practices. Powerful private institutions and suppliers used exclusive agreements, product bundling and price-fixing across textbook publishing and school uniform production, restricting consumer choice and increasing pressure on low-income households. World Bank data show that 33.5% of Egypt’s population lived below the national poverty line in 2021 to 2022.

In 2023, the Egyptian Competition Authority intervened against anticompetitive practices across textbook and school uniform markets. Markups on international schoolbooks fell by as much as 85%, while public spending on state textbook printing decreased by 21%. These reforms produced estimated household savings of nearly $1 billion over five years. Reforms were also expected to double or triple the number of school uniform suppliers and increase employment in the sector by as much as 50%. Reducing financial barriers to education can help break cycles of poverty and create greater long-term economic stability. Increasing competition can also benefit businesses and new market entrants by replacing restrictive arrangements with more open supply chains.

Mexico: Collusive Health Procurement vs. Institutional Sanctions

Between 2008 and 2015, collusion affected Mexico’s public health care system. Private companies rigged bids for blood bank services and laboratory diagnostics purchased by the Mexican Social Security Institute (IMSS) and the Institute for Security and Social Services for State Workers (ISSSTE), two of the country’s largest public health institutions. Because these systems serve more than 50% of Mexico’s population, bid-rigging increased public costs and reduced how far existing health care budgets could go. World Bank data show that 29.6% of Mexico’s population lived below the national poverty line in 2024.

Mexico’s competition authority, the Federal Economic Competition Commission COFECE, investigated the practices, penalized the bid-rigging cartel and imposed approximately 626.5 million Mexican pesos in fines on 11 companies and 14 individuals. Following enforcement, blood bank service costs fell by nearly 30% and laboratory testing prices dropped by almost 5%. A 2024 ex post assessment, later highlighted by the World Bank, found that the harm prevented and fines imposed were worth more than four times the agency’s annual operating budget. More transparent and competitive procurement allowed the public sector to make better use of existing resources, leaving more funds available for medical care.

What Georgia, Egypt and Mexico Show

The experiences of Georgia, Egypt and Mexico demonstrate that markets dominated by cartels or entrenched monopolies impede economic opportunity and growth. Long-term economic progress requires public institutions that can prevent anticompetitive behavior, make public procurement more transparent, protect consumers and remove barriers that unfairly favor established firms.

Well-designed competition policy encourages businesses to innovate, improve productivity and use capital more efficiently. Productive companies can expand, create stable employment and generate income that supports local spending. Poorly regulated markets, by contrast, can become increasingly concentrated and raise costs for consumers.

Addressing global poverty requires political will and smart policies that strengthen governance and economic opportunity. Well-regulated markets can help low-income families gain purchasing power and stability while companies benefit from a larger and more reliable customer base.

Georgia, Egypt and Mexico illustrate how targeted competition policy reforms can make markets work more effectively for families, governments and businesses at the same time. When leaders establish fair rules, enforce them consistently and protect vulnerable populations from anticompetitive practices, families gain more of the stability and purchasing power they need to build their own way forward. Continued enforcement and reform can help extend these gains to more low-income households.

– Aarush Pomar

Aarush is based in Chanhassen, MN, USA and focuses on Business and Good News for The Borgen Project.

Photo: Unsplash

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Can Matcha Help Fight Poverty in Rural Japan?

Poverty in Rural JapanMatcha has become a global phenomenon, fueled by its distinctive green color and viral popularity on social media. Rising demand has pushed the Japanese tea far beyond its traditional market, with 22% of the United Kingdom adults swapping out their morning tea or coffee for a functional alternative like matcha, herbal blends or mushroom drinks. Behind the trend are rural communities in Japan facing declining populations, aging workforces and economic pressures on agriculture.

Rural Japan Faces an Agricultural Crisis

Many of Japan’s tea-producing regions face declining populations and aging agricultural workforces, with around 43% of Japan’s local districts threatened by depopulation. Without people, rural economies cannot be sustained and farming livelihoods cannot persevere.

Japan is becoming one of the most rapidly aging and depopulating countries in the world, especially in rural areas, where outmigration has contributed to the collapse of local communities. Despite government efforts to revitalize these areas, such as Chiiki Okoshi Kyoryokutai, also known as Local Revitalisation Cooperator, a program that pays urban residents to move to rural villages for one to three years to jumpstart the local economy, farmers continue to face significant challenges, many reaching retirement age.

The number of commercial tea-farming operations has fallen sharply. According to Japan’s Ministry of Agriculture, Forestry and Fisheries Agricultural and Forestry Census, there were 53,687 farming operations in 2000; in 2020, it dropped to just 12,325.

Can Matcha Revitalize Rural Communities?

With mounting economic pressure, the growing demand for matcha could offer a new source of income to help revitalize rural communities by providing farmers with opportunities to increase income, sustain farms, and support their local economy.

The matcha boom has driven up the value of the crop, creating the potential for higher farmer incomes and making tea farming more financially viable. However, whether producers benefit depends on how much of this increased value reaches them.

The Japanese government and agricultural organizations are also trying to help farmers keep up with these demands by looking for ways to expand tencha production while finding a solution to the workforce shortage.

A 2026 initiative in Shizuoka aims to increase tencha production while improving farmers’ earnings and developing the regional tea industry. The initiative provides producers with technical guidance and equipment to help them transition to tencha cultivation, creating a more stable supply of matcha’s key raw material while ensuring that more of the value generated by growing demand reaches farmers in rural Japan.

Simona Suzuki, co-founder of the Global Japanese Tea Association, whose focus is on the revitalization of Japanese tea, said the government is beginning to take steps to support farmers. “I think everyone has it in mind that we have to do something.”

Reducing Poverty in Rural Japan

Matcha’s global demand for higher-value agricultural products can create new economic opportunities in rural Japan and make a significant contribution to tackling rural poverty. However, its long-term impact will depend on whether farmers and local communities can capture a meaningful share of the industry’s growing value, while overcoming the aging workforce, labor shortages and production constraints threatening Japan’s tea industry. They are on their way to doing so.

– Clara Iglesias Romero

Clara is based in Galicia, Spain and focuses on Business and Good News for The Borgen Project.

Photo: Unsplash

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Reducing Poverty in Vietnam Through Economic Reform

Poverty in VietnamIn 1986, most of Vietnam’s population lived in the countryside and depended on subsistence farming with little access to markets, credit or modern health care. That year, the government introduced Doi Moi, a set of market-oriented reforms that decollectivized farmland and opened the economy to foreign trade. The changes set off one of the most significant declines in poverty in Vietnam ever recorded. Gross domestic product per capita climbed from less than $700 in 1986 to nearly $4,500 in 2023, according to the World Bank.

A Sharp Decline in Extreme Poverty

Extreme poverty in Vietnam, measured against the World Bank’s international line of $2.15 a day, fell from 45% of the population in 1992 to less than 1% in 2022, according to the Organisation for Economic Co-operation and Development. Using the World Bank’s benchmark for lower-middle-income countries of $3.65 a day, the poverty rate declined further, from 14% in 2010 to about 4% in 2023.

Health and education outcomes improved alongside income. Infant mortality dropped from 32.6 deaths per 1,000 live births in 1993 to 12.1 in 2023, and life expectancy rose from 70.5 years in 1990 to 74.5 years in 2023, World Bank data show. National health insurance now covers 93% of the population.

Land Reform and Export Manufacturing Drove Growth

Two mechanisms account for much of the drop in poverty in Vietnam. First, Doi Moi returned control of farmland to individual households instead of state collectives, allowing farmers to sell surplus rice and other crops on the open market. Second, the government opened special economic zones and courted foreign manufacturers, turning the country into a hub for electronics, textiles and footwear production. The World Bank describes Vietnam as a middle-income economy that transformed from one of the world’s poorest countries within a single generation.

Millions Remain Vulnerable

Despite the sharp decline in extreme poverty in Vietnam, close to one in five people remain in a low-income bracket and could fall back into hardship after an economic shock or natural disaster, the Organisation for Economic Co-operation and Development (OECD) reported. Ethnic minority households in the country’s northern mountainous provinces and rice-farming communities in the Mekong Delta face particular exposure, as remote terrain and increasing flooding limit access to jobs, credit and health services.

A Road Program Reaching Remote Communities

One initiative addressing this vulnerability is the World Bank-supported Local Road Asset Management Program, which ran from 2016 to 2024 across dozens of Vietnam’s provinces. Rather than funding new construction, the program focused on routine maintenance of existing rural roads and bridges, ultimately improving the lives of more than 11 million people. Close to 51,000 kilometers of rural roads received regular upkeep under the program, connecting thousands of communes, home to some of the country’s most vulnerable populations, to schools, hospitals and markets, the World Bank reported. Lower transport costs allow farmers in remote provinces to reach buyers, addressing one of the structural barriers that keeps pockets of poverty in Vietnam persistent even amid national growth.

A Model for Continued Progress

Vietnam’s experience shows that sustained, reform-driven growth combined with targeted infrastructure investment can transform a country’s fortunes within a single generation. As the World Bank continues to describe Vietnam as a remarkable development success story, the country’s next task is ensuring that the millions still living near the poverty line are not left behind by the same shocks that once defined its past.

– Rachel Ma

Rachel is based in Florham Park, NJ, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Pixabay

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Empowering Fishing Communities in Mozambique

Fishing Communities in MozambiqueIn 2022, 81.4% of the population of Mozambique lived below the $3-a-day international poverty line, many of them in rural areas with limited industry opportunities. The Southeast African nation is home to 600 fishing communities spread across its coastline of more than 2,500 kilometers, and approximately 350,000 people rely on fishing as a source of income or food. From 2020 to 2024, fishery production increased from 390,587 to 502,895 metric tons. However, small-scale fisheries have struggled to finance necessary facilities and have called for more authority to enforce regulations locally. In the face of these difficulties, a community-focused management approach could be the way forward.

Mozambique Battles Food Insecurity

Mozambique faces food insecurity, with 1.2 million people experiencing high levels of acute insecurity categorized as phase three, “Crisis,” or above by the Integrated Food Security Phase Classification (IPC). Changeable weather conditions contribute, as rainfall and dry spells throughout the 2025 to 2026 agricultural season destroyed more than 300,000 hectares of crop-growing land and increased food prices. Improving fishery production could provide a pathway to better food security and transform livelihoods and opportunities in rural fishing communities in Mozambique.

Community Fishery Councils: Power to Local Collectives

Community Fishery Councils (CCPs) play a significant role in managing fishing at a local level. They help government fishing authorities effectively monitor and regulate fishing activities, promote sustainable practices and mediate conflict within their fishing communities. The impact of this local authority is significant. In Cabaceira Pequena, CCPs have implemented controls and closures of fishing grounds to allow regeneration of fish levels. This sustainable practice leads to a greater yield during fishing seasons and greater food security for the community.

In 2020, Mozambique’s government recognized CCPs as official legal entities, granting them powers to co-manage and share regulatory and decision-making authority. This encourages fishing communities in Mozambique to take ownership of their productivity and collaborate with authorities for effective management that will allow their industry to thrive.

The Smart Fisheries Co-Management Project

The Food and Agriculture Organization of the United Nations has pioneered the Smart Fisheries Co-Management Project (SFC), which has been a major support to the activities of CCPs. Operating in Mozambique from 2021 until 2026, the project aims to promote effective co-management and collaboration between CCPs and governmental authorities, fostering sustainable use of resources and improved livelihood opportunities in rural fishing communities.

SFC worked closely with communities in Vilankulo and pushed for the signing of formal co-management agreements in 2024, further solidifying local empowerment. Activities included a variety of training programs. Some took the form of guidebooks, e-learning courses and in-person trainings that shared knowledge and skills aimed at improving co-management and promoting more efficient running of small-scale fisheries. Others provided practical training for fishing-adjacent livelihoods such as freediving, hospitality and ecotourism, broadening career opportunities beyond traditional roles and promoting local economic development. With support from SFC, the Escola Superior de Hotelaria e Turismo offered a 15-day course to 15 community members, all of whom received official certifications in sustainable tourism practices that enhance their career prospects in a growing industry.

SFC also provided equipment to CCPs that addressed communities’ limitations in fish processing, enhancing productivity and business opportunities. In 2025, it supported the CCPs of Macunhe, Mabandene and Guitine by providing 10 freezers, three motorbikes and 15 cool boxes; these resources enabled better preservation of fish and increased yield from ships spending longer at sea. Indeed, this strengthens Mozambique’s fishing sector and enhances fishing communities’ access to business opportunities.

Looking Forward

Despite the significance of empowered CCPs and the important work of SFC, progress remains to be made. Fisheries’ potential to drive economic growth is underutilized, representing only about 2% of Mozambique’s GDP. Despite their contributions to fisheries activities and adjacent industries, women and young people remain largely excluded from male-dominated CCP management. Proposed 30% inclusion quotas for women and young people in training and fishery management could help address this issue as part of efforts to streamline effective co-management.

– Hannah Rix

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

Photo: Flickr

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Dedicated Freight Corridor: Reducing Poverty in India

Reducing Poverty in indiaIndia’s large and growing economy moves millions of tons of raw materials, finished products and food across thousands of kilometers of railway tracks. Indian Railways uses freight trains to transport these goods. For decades, freight trains shared heavily congested routes with passenger services, limiting the speed and capacity of freight movement. The Dedicated Freight Corridor (DFC) was conceived to solve this issue. The DFC created dedicated freight-only railway lines to increase capacity and improve the movement of goods. On the existing shared trunk routes, the DFC was designed to relieve capacity utilization, which has run as high as 115% to 150%, reinforcing its importance. The benefits extend beyond railway efficiency. By reducing logistics costs and improving connectivity, the DFC can support investment, job creation and higher incomes, potentially reducing poverty for families in India.

Why Did India Need the DFC?

Before the DFC, India’s freight network suffered from congestion and low speeds, making it harder and more expensive to move goods—and these costs ultimately affect businesses, workers and low-income households. Freight trains previously never averaged more than 42 km/h. On the completed sections of the Eastern DFC, trains now run at an average of 75 to 80 km/h, with some trains reaching nearly 100 km/h. India’s rapidly growing economy placed additional pressure on already congested routes. Industries also needed reliable rail infrastructure to move raw materials and finished goods efficiently. Rising costs and delays also pushed some businesses toward road freight, adding pressure to India’s roads and highways.

DFC Reducing Poverty in India

The Dedicated Freight Corridor lowers logistics costs by moving goods more efficiently. Lower transport costs can encourage business investment, create jobs, and expand economic opportunities for low-income communities. Eastern Indian states like Bihar, Uttar Pradesh and West Bengal benefit from these new corridors. The Eastern DFC connects several mineral- and agriculture-producing regions with major markets, improving access to industries and ports. New industrial activity can create employment and raise household incomes, particularly in regions connected to the freight corridors.

The DFC’s economic impact

The DFC has significantly improved freight movement and supported industrial development along its corridors. The area around the Jawaharlal Nehru Port in Mumbai has seen increased investment due to the upcoming Western Dedicated Freight Corridor. Villagers near DFC construction sites earned between $20 and $31 per day through skilled and unskilled labor, according to the World Bank. The Western Dedicated Freight Corridor is home to the Delhi-Mumbai Industrial Corridor, while the Eastern Dedicated Freight Corridor is home to the Amritsar-Delhi-Kolkata Industrial Corridor. Both corridors have generated substantial construction and operational employment along their routes. These employment opportunities can increase household incomes and expand economic opportunities for low-income communities connected to the freight corridors.

Land acquisition for the massive project presents a significant drawback however, particularly in Uttar Pradesh, Bihar and Punjab. Furthermore, the project also faces the ongoing challenge of seamlessly integrating the exclusive high-speed tracks with the legacy Indian Railways network and private logistics network.

Conclusion

The Dedicated Freight Corridor demonstrates how infrastructure investment can do more than improve transportation. By strengthening supply chains, reducing logistics costs and expanding employment opportunities, it can support long-term poverty reduction while contributing to India’s economic growth. As the network continues to expand, it may offer valuable lessons for other developing countries seeking inclusive economic development.

– Dhruv Bandhu

Dhruv is based in Bengaluru, India and focuses on Good News and Technology for The Borgen Project.

Photo: Pexels

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How the Ghana Chocolate Industry Is Growing

Ghana Chocolate IndustryGhana is the world’s second-largest cocoa producer and one of the largest suppliers of cocoa beans to the global chocolate industry. Cocoa supports the livelihoods of hundreds of thousands of farming families across the country. However, many cocoa farmers remain economically vulnerable, creating an opportunity for Ghana to capture more value from the crop it produces.

From Cocoa Beans to Chocolate

The Ghana chocolate industry is expanding as the country invests in domestic cocoa processing and chocolate manufacturing. By turning more cocoa beans into cocoa powder, butter, liquor and chocolate products within Ghana, the country can create economic opportunities beyond farming while retaining more value from its agricultural exports.

The International Labour Organization (ILO) found that Ghana earned $2.71 billion from cocoa exports in 2017, with approximately 80% of those exports consisting of raw beans. The organization also found that increasing domestic processing could create thousands of formal jobs.

Cocoa and Poverty Reduction

The expansion of the Ghana chocolate industry matters as cocoa farming has historically played a role in reducing poverty. According to the World Bank, the poverty rate among cocoa farmers fell from approximately 60% in 1991 to 24% in 2005 as cocoa production expanded.

Despite this progress, poverty remains a significant concern in Ghana. The World Bank reports that more than 20% of the population continues to experience poverty, with poverty rates exceeding 50% in some northern regions.

Cocoa farmers face additional financial challenges. The International Cocoa Initiative reports that Ghanaian cocoa farmers earn approximately $0.40 to $0.45 per person per day from cocoa, with cocoa accounting for about two-thirds of farmers’ household income. Small farms, low yields and high input costs can make it difficult for farming families to build financial security.

Expanding the Ghana chocolate industry cannot eliminate rural poverty by itself. However, increasing the amount of cocoa processed domestically could create additional employment and economic activity while strengthening demand for cocoa produced by Ghanaian farmers.

COCOBOD Invests in Farmers

The Ghana Cocoa Board, or COCOBOD, oversees cocoa production, marketing, quality control and industry development. Its programs also aim to improve farm productivity and farmer livelihoods.

COCOBOD reported in 2024 that it had rehabilitated 74,813 cocoa farms covering more than 67,000 hectares. Those farms belonged to 56,105 farmers. Another 44,480 rehabilitated farms, owned by 28,510 farmers, had begun producing cocoa.

COCOBOD also reported that 792,954 cocoa farmers and their households and dependents had been registered in its farmer database. The system allows the organization to better track farmers and improve the distribution of resources.

These programs address poverty at the farm level by supporting the productivity of an industry on which rural households depend. Higher productivity can give farmers the opportunity to generate more income from existing farmland.

Processing Creates Jobs

Domestic processing adds another economic layer to Ghana’s cocoa sector. The ILO studied two cocoa processing companies in Ghana to estimate the employment effects of expanding the industry.

The study found that cocoa processing creates formal jobs in manufacturing, but that the industry remains relatively capital intensive. The ILO estimated that processing 40% of Ghana’s cocoa before export could create approximately 4,000 permanent jobs directly in cocoa processing.

The jobs would include positions requiring different levels of skills depending on the technology used at processing facilities. The ILO also found that processing jobs tend to offer higher-quality employment, including longer-term positions and social security benefits.

The Ghana chocolate industry can create additional opportunities beyond processing plants. Manufacturing chocolate products requires packaging, transportation, marketing and other inputs, connecting cocoa production to a broader domestic supply chain.

Partnerships Strengthen Farmer Livelihoods

International organizations have also developed programs focused on the financial security of Ghanaian cocoa farmers. The World Cocoa Foundation, for example, has supported initiatives involving financial services and income diversification.

One World Cocoa Foundation-supported project in Ghana created 41 village savings and loan associations across 24 communities. The groups included 1,132 members, 84% of whom were women. Participants collectively saved $176,122, while $90,979 was distributed through loans.

These savings groups give farmers and their families access to financial tools that can help cover farm expenses and household needs. The program illustrates how economic support can complement efforts to increase agricultural productivity.

Building More Value at Home

Ghana’s cocoa sector demonstrates how agricultural production can contribute to poverty reduction while creating opportunities for further economic growth. Cocoa farming helped reduce poverty among cocoa-producing households during earlier periods of expansion, while new investments in processing could create additional employment and economic activity.

The Ghana chocolate industry still faces challenges, including low farm productivity, high production costs and fluctuations in global cocoa markets. Domestic processing alone will not guarantee higher incomes for farmers.

However, the ILO’s employment projections and COCOBOD’s investments in tens of thousands of farms show measurable opportunities within the sector. By expanding processing alongside programs that improve farmer productivity and financial resilience, Ghana can retain more economic value from its cocoa and create opportunities for the communities that produce it.

– Camille Utter

Camille is based in Seattle, WA, USA and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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Fiji’s Coral Restoration Economy Reducing Poverty

Fiji's Coral Restoration EconomyHealthy coral reefs are more than environmental assets in Fiji; they are economic lifelines for thousands of families. People, the environment and cultural heritage are deeply interconnected, but the changing climate, overfishing, coastal development and pollution are putting pressure on reefs that support food security, tourism, fisheries and local economies.

The stakes are particularly high for people living in poverty. According to the Asian Development Bank, 29.9% of Fiji’s population lived below the national poverty line in 2019. For low-income coastal households, a decline in reef health can mean fewer fish to catch, less income from fishing and tourism, greater exposure to storms and coastal erosion. These households often have fewer financial resources and fewer alternative livelihoods to fall back on when marine resources decline.

Fiji is responding by developing what can be described as a coral restoration economy: an approach that treats healthy reefs as economic infrastructure and invests in businesses and conservation projects that protect them. The goal is not simply to restore ecosystems, but to create jobs, strengthen food security, diversify incomes and make coastal communities more resilient.

Why Coral Reefs Matter to Communities Living in Poverty

Coral reefs are closely tied to Fiji’s food supply and livelihoods. Island communities obtain about 75% of their dietary protein from the ocean, while small-scale fishing provides food and income for coastal households. Reefs also support tourism and protect communities, infrastructure and farmland from storms and erosion.

When coral ecosystems deteriorate, fish habitat can decline, reducing catches and making fishing less reliable. Tourism businesses can also lose income when reefs become less attractive to visitors. For households already living on limited incomes, these losses can mean reduced access to food, lower earnings and greater financial insecurity.

The connection between reef health and poverty is particularly important because many coastal households depend on several benefits from the same ecosystem. A healthy reef can provide food for a family, income from fishing and tourism, and protection from coastal hazards. Losing those services simultaneously can leave vulnerable households with few alternatives.

How Fiji’s Coral Restoration Economy Is Creating Jobs

Investing in coral reefs can create employment in conservation, tourism, fisheries, agriculture and other parts of the blue economy. The Global Fund for Coral Reefs (GFCR) and the United Nations (U.N.)  Joint Sustainable Development Goals (SDG) Fund back Fiji’s Investing in Coral Reefs and the Blue Economy program, which uses blended finance to fund reef-positive businesses and sustainable livelihoods.

The program has set targets including hundreds of new jobs, benefits for tens of thousands of people and improved management of coral reef ecosystems. These are projected impacts, not outcomes the program has already achieved.

One example is Beqa Adventure Divers, which works with Galoa Village around Fiji’s Shark Reef Marine Reserve. The company employs local villagers as commercial divers and supports marine conservation, while a reserve levy from dive customers provides a recurring income for the village. The United Nations Development Programme (UNDP) reports that fish populations have increased within the reserve and neighboring reefs have experienced increased fishing yields.

Beqa Adventure Divers also reports contributing more than 500,000 Fijian dollars (about $220,000) directly to grassroots communities and training more than 50 diving professionals. Its youth program has helped school leavers develop skills for employment in the tourism industry.

Investing in Reef-Positive Businesses

Fiji’s coral restoration economy extends beyond tourism. GFCR-supported businesses are addressing the causes of reef degradation while generating commercial activity.

Fertile Factory & Co., for example, is developing a natural fertilizer from green waste and manure to reduce reliance on synthetic fertilizers and agricultural runoff that can damage reefs. Mango Fish is developing land-based aquaculture to increase domestic fish supplies while reducing pressure on coral reefs, with revenue supporting coral gene banks and locally managed marine areas.

The financing model aims to attract further investment. The Joint SDG Fund program has allocated about $5.5 million alongside approximately $4.7 million in co-financing to leverage up to $50 million in additional investment.

Lessons for Other Countries

Fiji’s experience shows that conservation can deliver economic benefits when local communities have a direct interest in protecting natural resources. Indonesia and the Philippines are developing similar approaches through ecotourism, sustainable aquaculture, marine protected areas and other reef-positive enterprises.

Coral restoration alone cannot eliminate poverty, but Fiji shows how environmental investment can address several development challenges at once. For other coastal nations facing changes in the climate and persistent poverty, the lesson is clear: protecting nature does not have to compete with economic development. When investment centers on the people who depend on ecosystems, healthy reefs can become the foundation for stronger and more resilient communities.

– Anna Morin

Anna is based in Fairfield, CT, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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How Microfinance in Nepal Is Expanding Economic Opportunity

Microfinance in NepalNepal has made remarkable progress in reducing poverty over the past three decades, but many people living in rural and mountainous communities still face barriers to financial services. According to the World Bank, the poverty rate fell from over 55% in 1995 to 0.37% in 2022, based on the international poverty line of $2.15 per day. Despite this progress, limited access to affordable credit continues to make it difficult for many households to invest in businesses, improve agricultural production or recover from financial setbacks. Microfinance in Nepal has emerged as one solution by expanding financial services to underserved communities and creating new opportunities for economic growth.

Expanding Financial Access in Rural Communities

Traditional banks often have limited reach in Nepal’s remote regions, where mountainous terrain and scattered populations make financial services difficult to access. To address this challenge, licensed microfinance institutions provide small loans, savings accounts, insurance products and financial literacy training to individuals who might otherwise be excluded from the formal banking system.

According to Nepal Rastra Bank, microfinance institutions play an important role in increasing financial inclusion by serving low-income households, small entrepreneurs and rural communities. These institutions allow borrowers to access capital without the large collateral requirements typically associated with commercial banks.

Supporting Women Entrepreneurs

Women make up the majority of microfinance borrowers in Nepal. Many institutions organize borrowers into community lending groups, allowing women to build credit, develop business skills and support one another while repaying loans. The Asian Development Bank notes that improving women’s access to finance strengthens household incomes while increasing economic participation and resilience.

Many borrowers use microloans to start or expand small businesses, including livestock farming, vegetable production, tailoring and local retail shops. Additional income generated through these enterprises helps families pay for education, health care and other household expenses while creating greater financial stability.

Microfinance and Poverty Reduction

The benefits of microfinance in Nepal extend beyond individual borrowers. Increased access to credit allows small businesses to hire employees, purchase equipment and expand production, creating employment opportunities within local communities. Financial services also help households build savings and better withstand unexpected economic shocks, such as natural disasters or medical emergencies.

The United Nations Capital Development Fund reports that expanding financial inclusion contributes to broader economic development by giving underserved populations access to savings, credit and digital financial services. As more Nepalese households participate in the formal financial system, they gain additional opportunities to build assets and improve long-term financial security.

Challenges Remain

Although microfinance has expanded economic opportunities for many households, challenges remain. Some borrowers have experienced difficulties repaying loans, particularly following natural disasters or periods of economic instability. Regulators have also worked to strengthen oversight of the microfinance sector by promoting responsible lending practices and consumer protection.

Nepal Rastra Bank continues to supervise licensed microfinance institutions and implement policies designed to improve transparency, financial stability and responsible credit expansion. These efforts seek to ensure that microfinance remains an effective tool for supporting sustainable economic development.

Looking Ahead

As Nepal continues to expand financial inclusion, microfinance remains an important tool for reducing poverty and promoting entrepreneurship. By providing small loans, savings opportunities and financial education to people who have historically lacked access to formal banking services, microfinance institutions are helping individuals build businesses, increase household incomes and strengthen local economies. While continued oversight and responsible lending will remain essential, expanding access to financial services has the potential to create lasting economic opportunities for communities throughout Nepal.

– Camille Utter

Camille is based in Seattle, WA, USA and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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Infrastructure Investment in Southern Africa

infrastructure investment in Southern AfricaThe World Bank and its partners are currently financing loans to support socioeconomic regional infrastructure investment in Southern Africa. These efforts aim to enhance transboundary interconnectedness, economic prospects, sustainability, electricity and energy access and sanitation services. One flagship regional effort, the Regional Infrastructure Finance Facility, has already connected 3.02 million people to new or improved electricity service across Eastern and Southern Africa. More than half of those connected are women. Households report increased study time for children and reduced time spent fetching fuel or cooking with kerosene and wood.

Extreme poverty affects 45.1% of Southern Africans, according to the United Nations Economic Commission for Africa. Since the COVID-19 pandemic, 60% of Namibians, South Africans and Zambians have reported significant losses in work and income. This has pushed 51 million more people into extreme poverty. Southern African countries face challenges with power supplies, logistics and job opportunities. These challenges make theg World Bank-supported loans vital for the region’s citizens living in extreme poverty.

Infrastructure Investment in Southern Africa

  • South Africa: The World Bank and the International Bank for Reconstruction and Development have issued their fourth development policy loan to South Africa, valued at $1.5 billion. South Africa’s economy was growing at just 1% annually, with electricity tariffs leading to frequent power shortages and transportation issues harming productivity. The World Bank’s loan aims to create 600,000 new and higher-paid jobs by 2032. It will also help alleviate domestic burdens related to structural damage, water fetching time, family health risks and electricity connection issues for 300,000 households. Investment in renewable energy has increased sixfold, with rail, port and freight financing doubling since 2023.
  • The Kalahari and Namib Deserts: The African Development Bank and its partners are administering the southern Great Green Wall Accelerator, allocating $4 million across Botswana, Namibia, South Africa and Angola. The program focuses on improving water access, renewable energy, resilient ecosystems, climate-resilient infrastructure, sustainable agriculture and inclusive economic development.
  • Zambia: By 2024, fewer than 10 million people in Zambia had access to electricity, with supplies often unreliable due to drought-prone conditions. The International Development Association grant of $200 million from the World Bank will provide more sustainable energy services to one million Zambians. An additional $43 million supports transboundary electricity transmission projects between Zambia and Malawi, enhancing socioeconomic prospects for households and businesses.
  • Malawi: The 2019 Malawi Electricity Access Project increased electrification rates from 11% overall and 4% in rural areas. The rate now stands at 25.9%, thanks to a $100 million World Bank grant. Currently, nearly two million Malawians have electricity access, fueling community economies and infrastructure systems. Close to 30% of these newly connected households are female-headed. The project set a benchmark for future infrastructure investments, as demonstrated by the $43 million IDA grant funding the Zambia-Malawi Interconnector Project.

Conclusion

Before World Bank financing, the Southern African infrastructure sector hindered millions of residents’ well-being, health, businesses, and economic prosperity. While challenges persist, loans from the World Bank and its partners provide hope for residents. These investments also strengthen socioeconomic diplomatic relations, endorsing efforts that enhance Southern African livelihoods.

– Oliver Jones

Oliver is based in Manchester, UK and focuses on Business and Global Health for The Borgen Project.

Photo: Flickr

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Chari: Empowering Local Retailers

ChariMorocco’s economy has seen strong growth lately, yet significant obstacles prevent that growth from reaching everyone. Data from the International Monetary Fund shows that the country’s gross domestic product (GDP) rose by about 4.9% in 2025, thanks to a recovery in farming and increased spending on major infrastructure projects. Still, joblessness remains an issue, with 13% of workers unemployed in 2025 and a projected rate of 12.3% for 2026. Additionally, the escalating conflict in the Middle East could slow down the expected GDP growth of 4.4% projected for 2026 by making imported goods more expensive and reducing demand from other countries.

Challenges for Small Shops

For small neighborhood shops, deeper problems make daily operations and growth difficult. According to recent World Bank statistics, when counting not just the unemployed but also those who have stopped looking for jobs or cannot get enough work hours, the rate of labor underutilization has reached 22.5%. Women are especially disadvantaged in the job market, and frequent droughts continue to hurt farming and water availability. Moreover, most small businesses do not use digital tools effectively. Only about one-fifth of Moroccan companies make full use of software for managing online orders.

This lack of technology holds back local retailers, and Chari, a Moroccan digital platform for small shops, is stepping up to bridge the gap.

What Is Chari and How Did It Start?

Chari is a mobile app that helps small shop owners in Morocco order products and manage their business finances with ease. Ismael Belkhayat and Sophia Alj started the company in early 2020. Before Chari, store owners often had to close their shops for hours or days to travel to wholesalers, losing money in the process. The app fixed this by letting merchants order goods and get them delivered the next day at no extra cost.

An interview with Ismael Belkhayat published by Africa’s Business Heroes in 2024 details how Chari offers financial services alongside product delivery. The company received a license from Morocco’s central bank to provide services like opening payment accounts quickly, giving merchants payment machines, issuing Visa cards and allowing customers to pay bills through the app. Regarding the benefit of these services, Belkhayat says, “This combination of commerce and finance allows us to empower small retailers not only with products but with the financial tools they need to grow and thrive in the digital economy.”

Platform Outreach

Mom-and-pop shops are the economic center of rural communities across Morocco, where supermarkets are often expensive or hard to reach and residents rely on corner stores for everyday essentials. Take Ismail Berkouk, for example, a 29-year-old snack-shop owner in Casablanca who did not have a bank account. After a friend told him about Chari, he began using the app to order supplies instead of shutting his store to go shopping himself, making the process of restocking his shop much more convenient and cost-effective. This Moroccan digital platform for small shops helps owners like Berkouk spend less on supplies and keep their stores stocked daily, a benefit that matters most in rural areas, where small shops are often the main place for families to buy everyday items.

Chari has signed up about 25,000 merchants across Morocco — out of an estimated 200,000 small merchants nationwide — and has also hired about 60 people to work in a call center teaching shop owners how to use the app. These call center jobs give employees steady wages and tech experience, while merchants who use the app can order supplies more efficiently and save money on each purchase. Those savings allow them to lower their prices or reinvest in their shops, which benefits the local customers and suppliers who depend on them.

What This Means for Morocco

In today’s world, digital platforms like Chari are important tools for local shops that have often been overlooked by banks and supply chains. The platform helps store owners get affordable products and access financial services while also teaching them valuable digital skills. By doing so, it keeps rural economies active and creates jobs. A Moroccan digital platform for small shops like Chari is exactly what the country needs to ensure that even rural communities can take part in the economy’s growth.

– Melody Ruiz

Melody is based in Bronx, NY, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Pixabay