Archive for category: Business

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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

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The Limits and Economic Effects of Cuba’s Market Reforms

Cuba’s Market ReformsOn June 18, 2026, Cuban lawmakers approved a collection of 176 free-market and decentralization reforms, marking the most significant transformation to Cuba’s socialist model since the 1959 revolution led by Fidel Castro. These reforms principally seek to authorize private real estate development, private banks, private enterprise (effectively lifting the previous 100-employee limit on private businesses and mandatory intermediaries), and to dissolve the requirement that foreign investors form joint ventures with the state.

The U.S. Embargo and Cuba’s Economy

The United States (U.S.) has maintained a comprehensive economic embargo on Cuba since 1962, originally implemented by President John F. Kennedy. President Donald Trump strongly enforced and expanded these restrictions during both his first and second terms, introducing several “maximum pressure” campaigns to isolate the Cuban government. The Trump administration’s pressure campaign toward Cuba forms part of “a broader strategy to assert U.S. primacy in the Western Hemisphere and limit the influence of adversaries such as China and Russia,” according to the Council on Foreign Relations.

When the embargo was first implemented, Cuba efficiently adjusted through trading opportunities with Soviet Bloc countries. According to a 2001 study from the U.S. International Trade Commission, “Soviet economic assistance, which peaked at nearly $6 billion annually in the 1980s, largely offset any adverse effects of U.S. sanctions and enabled the Cuban economy to grow.”

However, in 1991, upon the collapse of the Soviet Union and consequent loss of Soviet assistance, Cuba experienced an extended economic crisis called Período Especial (“Special Period”). Deprived of vital trade subsidies and cheap oil, the country’s GDP plummeted by 35%, bringing about severe food and fuel shortages, leading to widespread power blackouts and famine.

Since the Special Period, the U.S. embargo has cost the Cuban economy nearly $144 billion, as estimated by the Cuban government. Humanitarian organizations such as the Washington Office on Latin America, a United States nongovernmental organization (NGO) working for social and economic justice in Latin America and the Caribbean, argue that expanded sanctions and travel restrictions have contributed to shortages in fuel, medicine and food. As of 2025, a reported 89% of Cubans live in extreme poverty, according to a survey by the Cuban Observatory of Human Rights (OCDH), a Madrid-based group that has received U.S. government funding. Notably, that same OCDH survey found Cubans themselves cited power outages, food scarcity and low wages as their top concerns, while only 3% named the U.S. embargo as a primary worry. The continued impact of the embargo provides important context when evaluating the extent to which Cuba’s market reforms can improve conditions, as the embargo has not been lifted alongside the reforms — though Cubans’ own reported priorities suggest domestic factors weigh heavily on daily life as well.

Economic Effects of Cuba’s Market Reforms on Banking

Cuban Prime Minister Manuel Marrero stated that new private banks will operate under the regulatory supervision of the Central Bank of Cuba and theoretically on “equal terms” with existing state commercial banks. The reforms also authorize private and foreign capital institutions to set up operations on the island and provide microcredits directly to its growing entrepreneurial sector.

Due to U.S. secondary sanctions, many global banks are reluctant to conduct business with Cuban financial institutions. However, the banking reforms provide alternative channels for international investors, remittance companies and foreign vendors to route transactions through private entities, which significantly lowers the risk of triggering U.S. compliance penalties. If these changes attract greater foreign capital into the newly privatized banking sector, they could increase the financing available to domestic businesses and support expansion within the economy, potentially creating more employment and income opportunities for Cuban households.

Reviving Real Estate and Tourism

In his speech at the Extraordinary Plenary Session of the Central Committee of the Communist Party of Cuba (PCC), Miguel Mario Díaz-Canel Bermúdez, first secretary of the Central Committee of the PCC and president of the republic, announced plans to “develop a productive, regulated real estate market” that includes leasing idle state-owned properties, renting commercial and industrial spaces, and opening transparent bidding to state, private, cooperative and mixed-ownership entities.

Although the reforms are intended to stimulate tourism and economic activity, widespread flight cancellations persist due to U.S. sanctions, fuel shortages and the departure of major international hotel chains such as Blue Diamond Resorts (Canada), Meliá Hotels International and Iberostar (Spain). In January 2026, the U.S. government imposed additional tariffs on imports from countries that directly or indirectly supply oil to Cuba. Following the action, Cuba experienced a 58.4% decrease in international visitors during the first five months of the year compared to the same period in 2025, according to the Oficina Nacional de Estadística e Información. These external pressures may limit the effectiveness of Cuba’s efforts to support the economy through revitalizing tourism despite the introduction of private and mixed-ownership opportunities.

Retail and Food Services

The sector of Cuban food and retail services will undergo substantial change under Cuba’s market reforms alongside the shifts in the financial, tourist and real estate sectors. The government is eliminating “la libreta,” the state-issued booklet established in 1962 that entitled each Cuban household to a ration of heavily subsidized goods, and replacing it with a system of subsidized assistance exclusively for the “socially disadvantaged,” according to IPS News.

Simultaneously, state-owned enterprises and agricultural cooperatives will become autonomous, gaining authority to set their own worker pay scales, keep or reinvest their profits and directly partner with private companies. MiPymes, or MSMEs (private micro, small and medium-sized businesses), no longer have to navigate state intermediaries to purchase goods from abroad, allowing for direct imports of agricultural products, retail merchandise and other goods.

While the reforms are expected to increase the availability of imported goods through private trade, they may also deepen existing economic inequalities. Because MiPymes price imported goods in dollars at unregulated market rates, their shelves remain out of reach for millions of Cubans still living on fixed peso salaries or small pensions. For example, according to reporting from Barron’s, a liter of cooking oil at one Havana MiPyme costs $3, which makes up half of the monthly pension of retired security guard Joaquín Velázquez.

The Prospects for Economic Recovery

The economic effects of Cuba’s market reforms may rewire how business is conducted on the island, but they are unlikely to transform the country’s financial reality in isolation. By expanding the role of private enterprise, the government has created new opportunities for investment and commercial activity, yet many of the conditions that have contributed to Cuba’s economic crisis remain in place. As inflation continues to erode purchasing power, the benefits of greater market liberalization may remain out of reach for many Cubans. Nevertheless, greater access to private financing and fewer restrictions on businesses could allow the reforms to generate new sources of income and economic activity even under significant external and domestic constraints. If effectively implemented, the reforms could make Cuba’s emerging private economy a greater source of economic opportunity for its population.

– Nilani Mathur

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

Photo: Flickr

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Côte d’Ivoire’s Mango Industry Creating Jobs

Côte d'Ivoire's mango industryAgriculture remains central to Côte d’Ivoire’s economy, providing employment and income for millions. While cocoa is often highlighted, Côte d’Ivoire’s mango industry is also driving new economic opportunities. The country is Africa’s leading mango exporter and the third-largest supplier of fresh mangoes to Europe, behind only Brazil and Peru. The nation is transforming its mango sector from a seasonal activity into a modern value chain that creates jobs, supports industry, and reduces poverty.

Although Côte d’Ivoire has made significant progress in reducing poverty over the past decade, many rural households continue to rely on agriculture for their livelihoods. Expanding the mango industry is helping create employment opportunities, increase rural incomes and strengthen local economies, making it an important contributor to long-term poverty reduction.

Mangoes from Côte d’Ivoire are now shipped to supermarkets across Europe. However, experts note that the greatest potential lies in developing supporting industries. Investments in processing facilities, infrastructure, training, and local businesses are generating employment beyond traditional farming.

A Growing Industry Supporting Rural Communities

Mango production in northern Côte d’Ivoire forms the foundation of the sector, making the country the third-largest supplier of fresh mangoes to the European Union. For many rural families, mango cultivation provides essential seasonal income and supports local economies through jobs in harvesting, transport and trade.

Researchers at the Austrian Foundation for Development Research suggest that expanding mango production could create additional opportunities. Increased availability for export and local processing would enable more farmers to access international markets and raise their incomes. Export agriculture has also helped narrow the productivity gap between male and female farmers, demonstrating that with adequate support, commercial farming can promote greater equality.

The establishment of Inter-Mango in 2018 marked significant progress for the industry. This organization unites producers, traders and processors to enhance collaboration, increase competitiveness and improve quality standards. As the sector expands, it also works to strengthen Côte d’Ivoire’s mango value chain, ensuring more businesses can benefit from the industry’s growth.

Creating Jobs Through Processing

While fresh mango exports remain important, experts believe that processing mangoes domestically offers the greatest potential for job creation. Local businesses produce dried mangoes, pulp, juice, nectar, jams and mango butter, providing year-round employment rather than only seasonal work.

Processing also cuts down on waste. Many mangoes cannot be exported because they do not meet appearance standards or are damaged after picking. Instead of discarding them, these fruits can be turned into new products, helping businesses earn more, create factory jobs and reduce food waste.

This approach has already produced positive results. From 2017 to 2021, dried mango production rose significantly as processing capacity grew. The Ivorian government has supported this trend by targeting the domestic processing of 50% of agricultural products, ensuring more value remains within the national economy.

Researchers from the Austrian Foundation for Development Research view processing not only as manufacturing but as a means to achieve more stable employment, stronger local businesses, and greater economic resilience.

Government Investment Is Strengthening the Sector

Public investment has been instrumental in this transformation. Through the Competitive Value Chains for Employment and Economic Transformation Project (PCCET) supported by the World Bank, Côte d’Ivoire is modernizing agriculture and encouraging local processing.

The Support Project for Strengthening the Competitiveness of the Industrial Sector (PARCSI), backed by the African Development Bank and the government, shares these objectives. Instead of focusing only on production, these initiatives aim to strengthen entire value chains by promoting industrial development, attracting investment and enhancing competitiveness. By encouraging investment in processing and manufacturing, they are helping create sustainable employment opportunities and increase incomes for rural communities rather than relying solely on raw agricultural exports.

Experts recommend tying fiscal incentives and foreign direct investment to measurable employment targets to ensure industrial growth benefits local communities.

Jobs Beyond the Orchard

The mango industry’s benefits extend beyond farming and processing. Each stage of the value chain generates demand for additional businesses and workers.

Fresh mango exports depend on packaging manufacturers, transport companies, warehouses and logistics providers to move fruit efficiently to ports. Processing industries require bottling companies, sugar suppliers and machinery manufacturers. Industrial parks and improved electricity infrastructure support efficient factory operations.

Experts identify waste recovery as an emerging opportunity. Currently, an estimated 30% to 40% of mango production is lost after harvest. Developing industries to utilize this fruit for processed foods or other products could generate additional employment and reduce waste.

Supporting these backward linkages enables more businesses to participate in the industry’s growth and ensures a greater share of economic benefits remains within Côte d’Ivoire.

Investing in People

The continued success of Côte d’Ivoire’s mango industry depends on developing a skilled workforce. Experts recommend expanding vocational education, agricultural extension services, and technical training to prepare workers for specialized roles in processing, logistics and manufacturing.

Projects have provided management, marketing and industrial maintenance training for company executives, while also promoting collaboration between universities and businesses through internships and practical learning opportunities.

Researchers emphasize the importance of supporting women and young people. Expanding financial inclusion, strengthening producer organizations and improving access to technical education can help ensure that future industry growth benefits rural communities broadly, rather than only a few businesses.

Looking Ahead

Although challenges remain, such as infrastructure gaps, post-harvest losses and maintaining international quality standards, the outlook for Côte d’Ivoire’s mango industry is promising. Ongoing investment in processing, skills development and industrial infrastructure is transforming mangoes from a seasonal export into a driver of broader economic development.

By strengthening each stage of the value chain, Côte d’Ivoire demonstrates how agricultural investment can generate employment, support local businesses and improve rural livelihoods. Indeed, as the sector evolves, the mango industry serves as an example of how targeted investment and innovation can create jobs, increase incomes for rural households, build more resilient local economies and contribute to long-term poverty reduction.

– Jessica Begg

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

Photo: Flickr

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Women-Led Oyster Harvesting in The Gambia

Women-Led Oyster Harvesting in The GambiaThe Gambia’s oyster industry is emerging as a powerful example of how women-led conservation and entrepreneurship can reduce poverty while protecting the environment. The TRY Oyster Women’s Association, supported by the Food and Agriculture Organization’s (FAO) FISH4ACP Program, is a grassroots organization representing hundreds of female oyster harvesters. Through sustainable mangrove oyster harvesting and marine conservation, the association equips women with safer harvesting practices, swimming and water safety skills and greater economic opportunities. Women-led oyster harvesting in The Gambia demonstrates how investing in women’s cooperatives can strengthen food security while promoting sustainable development across West Africa.

Poverty in The Gambia

Although poverty remains a significant challenge in The Gambia, recent development initiatives have contributed to gradual improvements. According to World Bank projections, the poverty rate is expected to decline from 20.3% in 2025 to 20.1% in 2026 and 18.5% by 2028, lifting an estimated 30,000 people out of extreme poverty compared to 2025 levels. Alongside broader economic and social reforms, initiatives such as the TRY Oyster Women’s Association and the FAO’s FISH4ACP program are helping create more sustainable livelihoods for vulnerable communities.

The changing climate remains one of the country’s greatest development challenges. More frequent floods, droughts and shifting weather patterns threaten an economy that relies heavily on agriculture and fisheries. By creating safer jobs for women while encouraging sustainable management of coastal ecosystems, women-led oyster harvesting in The Gambia helps strengthen livelihoods, improve resilience to climate shocks and support local economic growth.

How Women-Led Oyster Harvesting Supports Communities

Fisheries play a vital role in The Gambia, supplying animal protein for approximately half of the population. Oyster harvesting is one of the sector’s most physically demanding occupations, and women make up about 98% of the workforce. Harvesting oysters often involves working in mangrove forests under difficult and sometimes dangerous conditions. Limited equipment, inadequate sanitation and a lack of swimming skills have historically increased safety risks for harvesters.

Through the FAO’s FISH4ACP program, women have received swimming lessons, life jackets, canoes and training in safer, more sustainable harvesting techniques. These investments not only improve worker safety but also help increase productivity while protecting the mangrove ecosystems that oyster populations depend on.

Successes of the TRY Oyster Women’s Association

The TRY Oyster Women’s Association has united approximately 500 women from 15 communities, giving harvesters a stronger collective voice and greater economic security. Because many women serve as primary earners and food providers for their families, strengthening this workforce has benefits that extend throughout local communities.

The Illuminating Hidden Harvests initiative estimates that 13,868 women participate in The Gambia’s fisheries sector. TRY has helped raise the visibility of these workers while advocating for better management of the country’s natural resources.

One of the association’s most significant achievements came in 2012, when it secured co-management responsibility for the Tanbi Wetland National Park. The agreement designated the protected area as a special management zone, allowing local women to play a leading role in conserving mangrove habitats while ensuring oyster harvesting remains sustainable for future generations.

Looking Ahead

Women-led oyster harvesting in The Gambia illustrates how community-led conservation can reduce poverty while protecting natural resources. By investing in women’s leadership, improving workplace safety and promoting sustainable harvesting practices, initiatives such as the TRY Oyster Women’s Association and the FAO’s FISH4ACP program are creating more resilient livelihoods and helping build a stronger future for coastal 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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Bafa Resort Reducing Poverty in Sierra Leone

Poverty in sierra leoneThough Sierra Leone is known for its beautiful beaches and vibrant culture, this West African country also faces persistent poverty. Inflation, minimal career opportunities and unequal access to resources and education contribute to almost two-thirds of citizens living below the poverty line. Repeated media coverage of tragedies in Sierra Leone, such as civil war, natural disasters and disease outbreaks, often deters tourists from visiting and supporting local businesses. However, tourism may have the potential to strengthen Sierra Leone’s economy. Here is how places like Bafa Resort can create new financial opportunities for Sierra Leone.

Poverty in Sierra Leone

As of 2024, about 65% of Sierra Leoneans, more than 5.5 million people, were living below the national poverty line. Poverty is especially prevalent in rural areas, where the poverty rate is roughly three times higher than in most urban areas. One of the many factors that contribute to the prevalence of poverty is the lack of stable job opportunities, particularly in rural areas. In 2022, about 289,000 adults were unemployed in Sierra Leone. Most people rely on inconsistent, low-paying jobs to survive, with 91.7% of working adults holding informal jobs.

Youth ages 15 to 24 and women are especially at risk of being unemployed or underemployed. Approximately 15.6% of adult women and 35% of youth in the workforce are underutilized. Low-income families often lack the funds to send their children to school, forcing youth to accept low-paying jobs and about 30% of girls to marry before age 18. Even when children can go to school, many schools do not have sufficient school supplies, qualified teachers or decent classrooms to effectively teach students.

About Bafa Resort

Bafa Resort is an eco-resort in the Banana Islands of Sierra Leone. Guests can enjoy meals made from locally sourced ingredients and partake in activities such as fishing, free diving, hiking and kayaking. Bafa Resort also offers several camping packages to suit guests’ preferences and budgets, ranging from guests pitching their own tents to relaxing in one of several “glamping tents” overlooking the ocean.

Bafa Resort has made intentional efforts to support islanders and local businesses. By buying locally sourced foods, Bafa Resort supports more than a dozen Sierra Leonean businesses while providing guests with fresh, quality meals. The community also receives “development fees” on behalf of resort guests to help support local industries and higher education. Additionally, locals are given priority for employment opportunities, especially women and youth.

One local who has benefited from working at Bafa Resort is kitchen manager and team leader Kona Keitell, affectionately known as “Aunty Kona” or “Aunty K.” Despite only having a Grade 2 level education, Keitell ensures that daily operations in the kitchen and the rest of the resort run smoothly. In 2018, Keitell was the first Bafa employee to benefit from the resort’s three-month paid maternity leave after welcoming her baby, Augusta. With the responsibility and skills she has learned through Bafa Resort, Keitell hopes to one day open her own restaurant.

Looking Forward

According to tour guide Peter Momoh Bassie, tourism is crucial in fostering economic growth in Sierra Leone. Places like Bafa Resort not only provide jobs and the chance to escape poverty for locals, but also advertise the nation as a tourist hotspot where visitors can relax, explore and enjoy the natural beauty. By changing global perceptions and supporting local businesses, tourism offers Sierra Leoneans a second chance at life.

– Lily Alexander

Lily is based in Surrey, BC, Canada and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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Textile Recycling in Kenya is Creating Green Jobs

Textile Recycling in KenyaTextile waste is becoming a growing environmental challenge in many countries, including Kenya. Every year, thousands of tons of used clothing and fabric waste end up in landfills or are burned, contributing to pollution and greenhouse gas emissions. According to World Bank data, close to 40% of Kenya’s population lives below the national poverty line. It is within this context that a growing number of organizations demonstrate that textile recycling in Kenya can be a driver of employment and entrepreneurship, particularly for low-income households. By collecting discarded clothing, recycling textiles into new products and supporting small businesses, these organizations are creating green jobs while helping to build a more circular economy.

The Role of UNEP

The United Nations Environment Programme highlights that the fashion and textile industry creates significant environmental challenges because of high resource use and increasing textile waste. Circular economy approaches, which focus on keeping materials in use for longer through reuse, repair and recycling, are becoming important solutions for reducing waste and supporting sustainable development.

Africa Collect Textiles Creates Jobs

Africa Collect Textiles (ACT) is one of Kenya’s organizations working to develop a circular fashion system. The company collects unwanted clothing and footwear through collection points and partnerships before sorting materials for reuse, upcycling and recycling. According to a 2025 profile of the organization by AMI, ACT has created more than 120 direct and indirect jobs so far, mainly for women, and can source up to two tons of unsold clothing a day from Nairobi’s Gikomba Market, East Africa’s largest second-hand clothing hub, recovering uniforms, off-cuts and other materials that would otherwise be burned or dumped. The same report notes that ACT is now working to install mechanical recycling equipment, with a longer-term goal of scaling up local fiber recovery across the continent.

ACT’s first Impact Report explains that the organization has developed textile collection, sorting and upcycling systems while focusing on poverty reduction, responsible consumption and job creation, particularly for women. The report highlights that ACT’s work creates both direct and indirect employment opportunities within the textile recovery process.

According to a profile by Start-Up Africa, ACT’s holistic approach aims to serve low-income communities directly, giving women and youth in Nairobi’s informal economy a steady income tied to a growing industry. UNEP also highlights ACT as part of its efforts to support sustainable textile practices in Kenya. The organization has transformed textile waste into products such as rugs, toys and yarn, demonstrating how discarded materials can become valuable resources.

Agricultural Waste Into Sustainable Fashion

While some organizations focus on recovering used textiles, others are creating new approaches to sustainable fashion by using alternative materials. Rethread Africa is one example of a Kenyan initiative that transforms agricultural waste into environmentally friendly textile materials. Impact Hub Nairobi reports that Rethread Africa uses maize husks, a byproduct of agricultural production, to create sustainable textile alternatives. According to Impact Hub, the initiative worked with 35 smallholder farmers during a pilot program in Homa Bay County and plans to expand this to more than 100 farmers within the next two years, giving them a new source of income from agricultural waste that would otherwise be discarded. A separate account of the initiative published by What Design Can Do reports that the resulting fabric uses 99% less water than cotton, cuts carbon dioxide (CO2) emissions by roughly 80%, and has helped participating smallholder farmers increase their income by around 40%.

This income boost matters because rural poverty in Kenya runs well above the national average. The Kenya National Bureau of Statistics reported an overall rural poverty rate of 42.9% in 2022, compared with 33.2% in urban areas, with smallholder farming households among those most exposed. By giving farmers an additional buyer for material that used to be worthless, Rethread Africa targets income growth in exactly the population where poverty is most concentrated.

The organization’s approach shows how innovation can connect agriculture, fashion and employment. By developing new materials and supporting sustainable production, Rethread Africa helps create opportunities for entrepreneurs and communities while reducing reliance on traditional textile materials.

TakaTaka Solutions Builds Kenya’s Recycling Economy

TakaTaka Solutions shows the same principle at work in Kenya’s broader waste economy. The company sorts collected waste into more than 40 categories and recycles around 90% of what it receives. According to a United Nations Framework Convention on Climate Change (UNFCCC) case study, the company was deliberately designed to create jobs for youth from lower-income areas of Nairobi, offering steadier work than informal waste-picking. Though its focus is plastic and household waste rather than textiles specifically, TakaTaka illustrates the broader potential for Kenya’s recycling sector to create jobs while addressing environmental challenges.

Conclusion

Textile recycling in Kenya demonstrates that waste can become a resource. Through collection, reuse and upcycling, organizations are creating new opportunities for employment while addressing environmental challenges. According to the International Labour Organization, green industries create new jobs while helping countries transition toward more sustainable economic models. While recycling alone will not eliminate poverty in a country where, per World Bank figures, close to 40% of the population lives below the national poverty line, these initiatives show how green businesses create employment, support entrepreneurship and encourage sustainable development. With continued investment in circular economy solutions, textile recycling in Kenya is helping build a future where waste becomes a resource and communities gain new opportunities for economic growth.

– Abisola Oladipupo

Abisola is based in Hatfield, UK and focuses on Good News for The Borgen Project.

Photo: Unsplash

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From Nigeria to Senegal: West Africa Agribusiness Opportunities

West Africa agribusiness opportunitiesWest Africa agribusiness opportunities are attracting attention from investors, development organizations and food-sector professionals. Across countries such as Nigeria, Ghana, Côte d’Ivoire and Senegal, agribusiness is becoming more than farming. It now includes food processing, branded packaged foods, sustainable packaging, cold-chain logistics and local supply chains. These areas matter because they can create jobs, improve food security and support poverty reduction.

The Role of Agribusiness in Economic Growth

The World Bank states that farming and agribusiness do more than feed people; they can support economic growth, reduce poverty and create jobs across production, processing, transport, trade and retail. This makes agribusiness important in West Africa, where agriculture remains closely linked to livelihoods and income generation.

Food insecurity also makes investment in food systems urgent. In January 2026, the Food and Agriculture Organization (FAO) warned that up to 52.8 million people in West Africa and the Sahel could face acute food insecurity during the June-to-August 2026 lean season if further action is not taken. The countries most at risk included Nigeria, Ghana and others in the region.

Investment and Growth in Agribusiness

One example of investor interest is Sahel Capital, a Lagos-based investment firm focused on food and agriculture. According to How We Made It in Africa, Sahel Capital launched the Sahel Capital Agribusiness Fund II, also known as SCAF II, to invest in agribusiness companies across Nigeria, Ghana, Côte d’Ivoire and Senegal. The fund had secured $29 million toward a $75 million target and planned to make investments ranging from $3 million to $15 million.

This shows that West Africa agribusiness opportunities are not limited to primary farming. The fund focuses on companies that can scale, improve food systems and strengthen local value chains. Sahel Capital’s previous investments also show how agribusiness finance can support growth in food processing and distribution. For example, Sahel invested in L&Z Integrated Farms, a dairy and yogurt producer in Kano, Nigeria. The African Private Capital Association reported that Sahel’s investment supported the expansion of the company’s processing plant and dairy farm.

Another previous investment was Coscharis Farms, a rice-processing business in Anambra State, Nigeria. According to How We Made It in Africa, Sahel’s investment helped finance processing facilities, expand cultivation and support a business model that bought rice from thousands of small-scale farmers. This type of investment can be important because it connects larger agribusinesses with local producers.

Opportunities in Branded Packaged Foods

One area of opportunity is branded packaged foods. As urban populations grow and consumer habits change, there is rising demand for food products that are safe, convenient, recognizable and easier to distribute. Sahel Capital’s first SCAF II investment was in Delifrost Caterers, a Nigerian company involved in packaged foods and cold-chain distribution. The African Private Capital Association reported that the investment was made alongside the fund’s first close and that Delifrost operates in integrated cold-chain distribution for packaged foods.

Branded packaged foods can support poverty reduction when companies source ingredients locally and work with farmers, suppliers and distributors. Instead of only selling raw agricultural products, local businesses can add value through processing, branding, storage and packaging. This can create more jobs across the value chain.

Insights From Terence Unogwemoh Egwaogie

The Borgen Project spoke with Terence Unogwemoh Egwaogie, a Caritas volunteer based in Austria, in an email interview about food systems, agribusiness and poverty reduction. Through his volunteer work, Egwaogie supports vulnerable people, including those experiencing homelessness and poverty. He said this work has developed his interest in food systems, community development and poverty reduction.

Egwaogie explained that West Africa has “enormous agricultural potential” because of its fertile land, growing population and high demand for food. He said investment in agribusiness can increase food production, create employment, reduce poverty and improve food security. His comments show why agribusiness is not only a business issue but also a development issue.

Countries such as Nigeria, Ghana, Côte d’Ivoire and Senegal are attractive for agribusiness growth because they have large agricultural markets, favorable climates and natural resources. Egwaogie also noted that some governments are introducing policies to encourage agricultural investment and improve food production. This is important because private investment often works best when supported by public policy, infrastructure and training.

Sustainable Packaging and Cold-Chain Logistics

Sustainable packaging is another important part of West Africa agribusiness opportunities. Packaging helps protect food during transport, preserve quality and extend shelf life. However, packaging can also create environmental problems if it depends heavily on non-recyclable materials. Egwaogie said sustainable packaging can reduce food waste, protect products during transportation and minimize pollution by encouraging recyclable or biodegradable materials.

Cold-chain logistics can also reduce food loss. FAO says cold chains help keep food fresher and more nutritious from farm to fork. This is especially important for perishable foods such as dairy, meat, vegetables and frozen products. In West Africa, better cold storage and transport can help food businesses reach more consumers while reducing spoilage.

Support for Smallholder Farmers

Agribusiness investment can also support smallholder farmers. Egwaogie explained that investment can provide farmers with improved seeds, equipment, affordable loans, organic fertilizers, training, storage facilities and better transportation. These forms of support can increase productivity, reduce post-harvest losses and improve farmers’ incomes.

However, agribusinesses in West Africa still face serious challenges. Egwaogie identified limited mechanized farming, inadequate storage and processing facilities, poor road infrastructure, limited access to finance, climate change and insufficient agricultural education as major barriers. These challenges show why investment alone is not enough. Agribusiness growth also requires infrastructure, skills development and better access to finance.

The World Bank’s recent work in Nigeria shows the importance of strengthening agricultural value chains. In March 2026, the World Bank approved a $500 million credit for Nigeria’s Sustainable Agricultural Value-Chains for Growth Project, which aims to increase smallholder farmer productivity, strengthen agricultural value chains, create jobs and improve food and nutrition security.

Inclusive Growth for Poverty Reduction

For agribusiness growth to reduce poverty, it must be inclusive. Egwaogie said agribusiness can create jobs and income-generating opportunities across the agricultural value chain, especially for young people, women and rural communities. This is important because poverty reduction depends not only on business growth but also on who benefits from that growth.

West Africa agribusiness opportunities in branded foods, sustainable packaging and food processing have the potential to support food security and economic development. Investment can help businesses scale, improve supply chains and create employment. However, the greatest impact will come when agribusinesses work with smallholder farmers, support local suppliers, reduce food waste and create opportunities for communities most affected by poverty.

Agribusiness alone cannot end poverty in West Africa, but it can form part of a wider solution. When investment is linked to local sourcing, sustainable packaging, cold-chain logistics, training and fair access to markets, the region’s food sector can become a stronger driver of poverty reduction.

– Josephine Dokpesi

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

Photo: Unsplash

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Rising Incomes in Vietnam: New Businesses Opportunities

investment opportunities in VietnamEconomic growth in Vietnam has lifted millions of people out of poverty over several decades. As household incomes rise and the country’s middle class expands, consumer demand for goods and services continues to increase. These changes are creating new opportunities for international trade and investment, including U.S. companies seeking access to one of Southeast Asia’s fastest-growing markets.

Rising Incomes in Vietnam

Vietnam reduced the share of its population living in extreme poverty from more than 70% in the early 1990s to less than 1% in recent years, a feat widely recognized as one of the world’s “development miracles.” Strong export growth, industrial development and investment in education have contributed to rising living standards across the country. As more Vietnamese households gain purchasing power, businesses around the world are benefiting from a larger consumer market.

Vietnam’s middle class has grown rapidly alongside the country’s economic development. The World Bank projects that the middle class will expand from approximately 13% of the population to roughly 26% by 2026, making it the fastest-growing middle class in Southeast Asia. Rising incomes in Vietnam have increased demand for consumer goods, health care services, technology products and educational opportunities.

This shift has transformed Vietnam from a low-income economy into an increasingly important consumer market. Families that once focused primarily on basic necessities are now spending more on electronics, household products, travel and financial services. As a result, companies from the United States and other countries have expanded their presence in Vietnam to meet growing demand.

The growth of the middle class also supports broader economic stability. Increased consumer spending helps create jobs, encourages entrepreneurship and strengthens domestic markets. These trends contribute to continued poverty reduction while attracting foreign investment. However, challenges remain: nearly 40% of middle-class individuals have fallen back into lower income brackets within just two years, and housing costs remain a significant burden.

Growing Opportunities for US Businesses

The United States and Vietnam have strengthened economic ties in recent years. According to the U.S. Census Bureau, bilateral trade between the two countries has increased significantly over the past decade, making Vietnam one of America’s largest trading partners in Southeast Asia. In Hai Phong alone, a major port city, exports to the U.S. reached approximately $2.14 billion in the first five months of 2026, a 23.20% increase compared to the same period in 2025.

U.S. companies have invested in a variety of sectors including technology, renewable energy, health care and consumer products. Vietnam’s growing population and expanding middle class provide opportunities for American businesses to reach new customers while supporting jobs in the United States. As of June 2026, U.S. investors had 35 active FDI projects in Hai Phong alone, totaling over $965.34 million in registered capital.

Technology companies, for example, have benefited from increased demand for smartphones, software and digital services. U.S. agricultural exporters have also gained access to a larger market as rising incomes increase demand for higher-quality food products. The Vietnamese government has specifically encouraged U.S. businesses to expand investment in high-tech, innovation and semiconductor industries.

Investment Supports Long-Term Growth

Foreign investment continues to play an important role in Vietnam’s development. International companies contribute capital, technology and expertise that support economic expansion and job creation. In turn, a stronger Vietnamese economy creates additional opportunities for trade and investment.

The United States Agency for International Development (USAID) has partnered with Vietnam since 1991, investing in programs that have improved the lives of approximately 1 million persons with disabilities, spurred over $300 million in solar and wind investments, and helped modernize higher education. USAID has also supported Vietnam’s Provincial Competitiveness Index (PCI), which encourages provinces to improve governance and economic competitiveness.

Vietnam has also invested heavily in infrastructure, education and workforce development. Improvements in transportation networks, digital connectivity and manufacturing capacity have helped attract multinational companies seeking reliable production and distribution hubs. The World Bank projects Vietnam’s economy will continue growing at 7% to 8% annually, considerably higher than other ASEAN economies.

These investments support Sustainable Development Goal 1 by creating employment opportunities and increasing household incomes. They also help build a larger consumer base that can participate more actively in the global economy.

Looking Ahead

Vietnam’s progress in reducing poverty demonstrates how economic development can create mutual benefits for countries around the world. Rising incomes have improved living standards for millions of Vietnamese citizens while opening new markets for international businesses. A recent upgrade to upper-middle-income status reflects this remarkable transformation and rising incomes in Vietnam.

As Vietnam’s middle class continues to expand, opportunities for U.S. companies are likely to grow as well. The U.S. private sector, which spends nearly $1 trillion annually on research and development, is well-positioned to partner with Vietnam on technology, energy and digital infrastructure. Increased trade, investment and consumer demand highlight the connection between poverty reduction and economic opportunity. By supporting development and economic growth, countries can help create stronger markets that benefit businesses, workers and communities on both sides of the partnership.

– Angela Qi

Angela is based in Beijing, China and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr