Archive for category: Development

Information and stories on development news.

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Nepal’s Poverty Reduction Through Local Solutions

Nepal's poverty reductionNepal, a landlocked Himalayan nation, has made significant strides in poverty reduction over recent decades; however, significant challenges persist, particularly in rural and underdeveloped regions. According to the Fourth Nepal Living Standards Survey (NLSS) 2022–23, the national poverty rate stands at 20.27%. Rural areas are disproportionately affected, with a poverty rate of 24.66%, compared to 18.34% in urban regions. Contributing factors include limited access to essential services such as education, health care and clean drinking water. Youth unemployment remains a pressing issue, with more than 19% of young people unemployed, a figure significantly higher than the national average. This has led to increased migration, both internally to urban centers and externally abroad, as youths seek better employment opportunities.

Government Initiatives

The Nepalese government has implemented several programs aimed at poverty alleviation. The 15th Periodic Plan (2019–2024), developed by the National Planning Commission, focuses on achieving sustainable development goals and transitioning Nepal to a middle-income country. Key objectives include economic diversification, infrastructure development and social inclusion. Another significant initiative is the Prime Minister Employment Program (PMEP), which seeks to provide short-term employment opportunities to unemployed individuals, particularly in rural areas. The program aims to enhance skills and increase income levels among marginalized populations.

International Aid and Partnerships

International organizations have played a crucial role in supporting Nepal’s poverty reduction efforts. USAID has been instrumental in sectors such as education, agriculture and health through financial aid. However, recent budget cuts have led to the suspension of several projects, raising concerns about the continuity of essential services.

The World Bank’s Rural Access Improvement and Decentralization Project has improved rural infrastructure, facilitating better access to markets and services. Similarly, the United Nations Development Programme (UNDP) has supported climate resilience and local governance initiatives, including the implementation of Local Adaptation Plans of Action (LAPAs) that empower communities to address climate change impacts.

Community-Based Efforts

Grassroots organizations have been vital in addressing poverty at the local level. READ Nepal, part of the READ Global network, organizes Community Library and Resource Centers that offer educational resources, vocational training and women’s empowerment programs. These centers have reached millions in rural communities, fostering literacy and economic development while reducing income inequality. The Federation of Community Forestry Users, Nepal (FECOFUN) empowers local communities to manage forest resources sustainably. By providing employment opportunities and generating income from selling forest products, FECOFUN promotes environmental stewardship and economic development.

The Role of Remittances

Remittances from Nepalese working abroad account for a significant portion of the country’s GDP. In 2023, remittances totaled more than $11 billion, accounting for more than 25% of the GDP. These funds have been instrumental in reducing poverty, improving household incomes and contributing to economic stability.

Moving Forward

Nepal’s comprehensive approach to poverty reduction—combining government policies, international aid and community initiatives—demonstrates the effectiveness of collaborative efforts in addressing economic challenges. Continued support and investment in these areas are essential for sustaining progress and achieving long-term development goals.

– Giovanni Garcia

Giovanni is based in Long Beach, CA, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Unicorns and Startups: Declining Poverty in India

Declining Poverty in IndiaOver the last 15 years, India’s economy has grown significantly. Once viewed as a developing country that shipped its skilled labor and talent abroad, India increasingly retains young entrepreneurs within its borders. Due to this emerging sense of entrepreneurial activity, India now has the third-largest tech ecosystem in the world, behind only China and the U.S..

According to the most recent estimates from the World Bank, 12.92% of India’s citizens lived in extreme poverty (under $2.15 a day) in 2021. That number jumps to about 44% when poverty is defined as living on less than $3.15 per day. Yet at the same time, India’s startup ecosystem has skyrocketed, led by its “Unicorn” companies. A Unicorn company is a startup with a total valuation of more than $1 billion. India now has more than 100 Unicorn companies across the tech sector, ranging from EV startups to online financial services.

A Rising Tide

The startup ecosystem has undoubtedly created many positive benefits for Indian society. For instance, the emerging companies create new job opportunities for Indian citizens with varied skills and backgrounds. Estimates show that job growth in India will continue its upward momentum and expand at a rate of 9% in 2025. As new startups continue to pop up, new employees will be necessary to fill various roles. Increasing employment is a direct way to create new economic opportunities and stable environments for Indian citizens, as research suggests that job growth helps to reduce poverty.

The logic here is that a rise in the general wealth of the state could benefit all its citizens. Besides directly creating jobs, India’s rising wealth also means that funds could go into philanthropic opportunities. Public affairs expert Nicole Manetti notes the charitable impact of the Azim Premji Foundation. Once the chairman of the Indian tech startup Wipro, Premji now uses the money he made as a business leader to invest in educating India’s poor. Premji’s case demonstrates that the increased levels of wealth in India’s top classes can still benefit its poorest citizens.

Moreover, the new businesses increasingly create job and leadership opportunities for women in India, helping to close the gender gap in business. Female entrepreneurial activity is almost equal to that of males, at a rate of .73 to 1. While a clear funding gap for women-led businesses still exists, the gender divide has been closed in other ways. Thanks to government initiatives centered around the drive toward entrepreneurship, males and females in India now own bank accounts at equal rates.

Companies That Care

Leaving aside the net benefits generated by the new tech ecosystem as a whole, individual businesses alone can create products and systems that benefit India’s poor. For example, Indian fintech startup Refyne is helping India’s poorest citizens avoid the crippling debt cycle and predatory lending practices that often prevent poverty-stricken individuals from climbing the socioeconomic ladder. Refyne offers a cheaper line of credit than its competitors to workers living paycheck to paycheck. By giving workers a money advance they have already earned, the company provides a safer lending alternative to those struggling to make ends meet.

Karya, a startup that collects large-scale data to feed AI machines, is another business working to alleviate poverty in India. Karya pays competitive wages to its part-time workers, who help train the AI systems in their native dialects. Because AI is largely trained on widely spoken languages like English, there is a need for data on smaller, regional dialects.

Karya works with organizations to find people most in need of work, and gives its employees ownership of the data that they create. However, generating economic activity among poverty-stricken citizens is not Karya’s only benefit to Indian society. The hope is that the language data collected from workers in remote regions will make AI more accessible to those same workers, making it easier for those who speak rare dialects to get health and financial advice.

Do Unicorns Help the Poor?

For all the good these tech startups create, some question whether the businesses effectively alleviate poverty in India. Researcher John Hoffmire points to India’s high poverty rates and large wealth gap as evidence of an unequal distribution of the tech boom’s benefits. He highlights the problem of informal workers whose “low wages and minimal protections” result in “an unbalanced labor market.” Adding to this inequality and imbalance is the fact that a large portion of India’s population is still at risk of poverty, especially when using the $3.15 benchmark.

However, using the Gini Index, it is clear that India’s inequality has declined in recent years, moving from 35.9 in 2017 to 32.8 in 2021. This can be compared to the global average Gini Coefficient of 38.2.

Moreover, Bhalla and Bhasin note that India has nearly eliminated poverty below the severe $1.9 line. This leads them to suggest that India should set new standards for measuring poverty within its borders. This trend follows the other poverty-reducing improvements, such as decreased inequality and increased job growth, discussed in this article.

The Future of Poverty Rates in India

While it is not certain that declining poverty and inequality in India can be directly tied to its startup boom, it is clear that many of India’s new businesses are creating positive social and economic change. From increased job growth to a greater level of female entrepreneurship to projects specifically focusing on helping India’s poor, much of the tech ecosystem activity focuses on eliminating poverty in India. Although India’s continuously decreasing poverty rates may be due to a confluence of factors, the country continues to trend in the right direction. Led by its ambitious new startups in the tech sector, India’s economy continues to grow as its citizens move to a more sustainable economic outlook.

– Charles Citron

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

Photo: Flickr

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5 Things To Know About Higher Education in the Bahamas

Higher Education in the BahamasThe Bahamas, a nation known for its stunning beaches and vibrant culture, faces unique challenges and opportunities in its higher education system. While poverty poses significant barriers, ongoing efforts and systemic strengths offer hope for a brighter future. 

Low Graduation Rates Pose Challenges

The Bahamas struggles with worryingly low graduation rates at the university level due to socioeconomic factors, academic challenges and other circumstances. Additionally, only 7% of students at the University of The Bahamas are studying science and technology-related courses. This lack of focus on key fields limits the country’s ability to diversify its economy, leaving the tourism sector the dominant growth driver.

Poverty as a Barrier to Access

Approximately 25% of households in The Bahamas experience poverty, especially those led by individuals with no formal education. Many families cannot afford the costs associated with university or college attendance, including fees, books and living expenses. 

Limited scholarship opportunities and financial aid programs mean students from disadvantaged backgrounds often do not pursue higher education entirely. Ultimately, this deepens social inequality and prevents talented individuals from underserved communities from reaching their full potential.

A Structured Education System With Potential

The Bahamian education system, modeled after the British framework, provides a structured pathway to higher education. Students complete The Bahamas General Certificate of Secondary Education (BGCSE) before pursuing advanced studies at institutions like the University of The Bahamas.

However, The Bahamas has only one public university, making it highly competitive for students, especially those from low-income households, who cannot afford to study in private institutions or abroad.

Growing Educational Attainment Offers Hope

Despite challenges, the higher education system in the Bahamas is progressing. The percentage of Bahamians aged 25 and older with at least a bachelor’s degree has risen steadily, reaching 15% in 2010 from 0.3% in 2000.

While still low compared to global standards, this upward trend reflects increasing access to higher education and a growing recognition of its value. 

Future Opportunities Through Innovation and Investment

The future of higher education in The Bahamas is promising, with opportunities to overcome poverty-related barriers through innovation and investment. The government and private sector are exploring partnerships to fund scholarships, improve infrastructure and integrate technology into classrooms. 

These efforts aim to equip students with the skills needed for a more diversified economy beyond tourism.

A Path Forward

Higher education in The Bahamas faces significant hurdles, particularly for students experiencing poverty. Yet, the nation’s structured system, rising attainment rates and commitment to innovation provide a foundation for hope. 

– Sydney Carr

Sydney is in San Diego, CA, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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The Impact of Losing Third Places in Europe

Third Places in EuropeThird places are vital social spaces between work and home – offering individuals a sense of engagement, interaction and community. The popularity and availability of third places in Europe have faded with the rise of social media and the gentrification of inner-city neighborhoods. As one of the key frontiers providing local community touchpoints, third places support the well-being of individuals, especially those living or at risk of being near the poverty line.

A Recent History of Third Places in Europe

Third places are social sites such as cafes, community centers and neighborhood environments, including local parks, sports grounds and places of worship. They have existed for centuries in human populations and the rise of the coffee house during the 17th Century is a popular example of third places in Europe. The COVID-19 pandemic saw the closure of local hang-out spots and widespread social distancing measures. The closures led to the permanent shutting of many local small businesses and a loss of community centers hit by significant funding cuts. As a result, critical spaces where people could engage in social interaction were lost.

Moreover, gentrification has only exacerbated a loss of inclusive third places in Europe. The process of gentrification in popular tourist and financial cities is transforming once-vibrant community areas into spaces of exclusion. For example, tourism-driven gentrification in Barcelona’s El Raval and Barceloneta neighborhoods led to increased rents, pushing out established local businesses or forcing them to adapt to tourist preferences. The accompanying social networks fostered in these spaces quickly dissolved.

Similarly, gentrification in Stockholm created “filter bubbles” and left low-income neighborhoods, often plagued by high levels of youth gang violence, without sufficient investment in social spaces for youth to develop away from the influence of gang activity and recruitment. While co-working spaces as “third places” in Mediterranean countries are on the rise, these are artificial spaces prioritizing productivity and professional networking rather than fostering meaningful, work-free social interactions. Co-working space identification as “third places” may be a more prominent symptom of a growing societal tendency to value individuals based on economic contribution rather than emotional well-being.

Social Media and the Cost of Third Places

The rise of virtual third places, especially social media, has contributed to the erosion of physical third places and the developmental process of learning social interaction. While social media platforms have created virtual connection spaces, they cannot replace the face-to-face interactions essential for community engagement and mental health. According to the Cigna Loneliness Index, Gen-Z, despite being the most digitally connected generation, reports the highest levels of loneliness.

Additionally, many third places are becoming increasingly expensive to frequent. For example, in London (U.K.), coffee prices have surpassed $6 in many establishments, making cafes and paid social spaces too expensive for regular visits in times of falling disposable incomes.

Mental and Physical Health Impacts

The role of third places in Europe is essential. The spaces are associated with improving quality of life, well-being and health. Third places provide crucial opportunities for social interaction. For instance, using third places (such as cafes) has been shown through multiple studies to improve how older adults can participate in society by providing informal support networks and social relationship-building to help combat cognitive decline and symptoms of depression later in life. The role of third places in combating loneliness is vital – with loneliness potentially cutting lives short by 15 years.

Third places in Europe also play a key role in helping mitigate poverty. Poverty is a multidimensional issue; however, social exclusion is both a determinant and by-product of some people’s realities of living in poverty. Without accessible third places, individuals living in poverty are more vulnerable to social exclusion, which further exacerbates their economic and mental health challenges.

Future Cities

For those living near the poverty line, access to these third places remains crucial for mental and physical health, as well as for preventing social exclusion. In the face of gentrification, digital spaces and rising costs, there is a pressing need for policies that prioritize creating and preserving accessible third places in Europe and its cities.

– Autumn Joseph

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

Photo: Pixabay

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Hope for Haitians: Baking a Brighter Future

Hope for HaitiansCenturies of French colonization heavily impacted Haiti’s economy and human development, making it the most impoverished nation in the Western Hemisphere. Political unrest and natural disasters continue contributing to negative economic growth and discouraging foreign investment. However, in 2024, Hope for Haitians started a baking project in Haiti with Au Bon Pain de Ton-Ro/Boulangerie et Pâtisserie, a for-profit bakery in Trou du Nord, Haiti.

This initiative, supported by the HELP Foundation and Village Leadership Councils (VLC), helps people in seven rural villages acquire jobs, providing job security while creating self-reliance in both the economy and food sources. This initiative can have a significant impact, as unemployment in Haiti affects about 15% of the population, nearly three times the global average.

Sustainable Partnership

Hope for Haitians and Au Bon Pain de Ton-Ro have similar goals, with Hope for Haitians respecting Au Bon Pain de Ton-Ro’s position as a locally owned business. Hope for Haitians provides the necessary funding to improve the bakery’s facilities, buy equipment and provide vocational training, ensuring the future success of this baking initiative in Haiti.

The bakery provides at least two jobs in each village, baking food for Hope for Haitians-VLC to sell and training employees to continue developing their skills. The main focus is long-term economic growth, which is accomplished through building job skills to keep the bakery operating while ensuring the success remains within the local economy.

Empowering Communities

This baking in Haiti project offers workers leadership roles and economic opportunities, fostering a sense of empowerment for people who struggle with poverty. Although Hope for Haitians-VLC provides operational and managerial support, each village has complete control over selling the bakery’s goods, helping workers earn locally.

The project uses a revenue-sharing system to support sellers and to give back to each community. Local sellers earn 5% of the sales; another 5% goes to schools, health care or public services. The project also creates jobs beyond the bakery, with workers receiving vocational training to acquire skills to participate in other business ventures.

This allows the workers to improve their baking skills while creating future opportunities in Haiti’s growing food industry. Infrastructure upgrades such as new ovens, milling equipment and distribution vehicles ensure the continued success of this initiative.

Overcoming Challenges

All parties involved understand that large projects come with risks and Hope for Haitians has pledged to use its resources to support the villages’ ongoing economic development. The organizations have implemented measures to ensure bakeries operate safely and efficiently, addressing challenges as they arise.

For example, if a village faces distribution issues, the bakery and Hope for Haitians-VLC work together locally to identify and resolve the problem, preventing it from affecting the broader operation. Additionally, contingency plans are in place for potential shutdowns or unexpected disruptions. This thoughtful approach reflects Hope for Haitians’s dedication to the community’s long-term success.

The Future

The bakery represents progress and hope for the future, showing how people living in poverty can become successful if given the right opportunities and support. Hope for Haitians is promoting a future founded on long-term growth by funding local companies rather than managing from outside.

As the project grows, its impact reaches beyond baking and distributing bread. It demonstrates how companies and nonprofits can work together to strengthen impoverished communities and help them escape poverty. The initiative allows Haiti’s rural areas to become more self-sufficient by focusing on local leadership and building community relationships.

– Rafe Photopoulos

Rafe is based in Gainesville, FL, USA and focuses on Business and Good News for The Borgen Project.

Photo: Pexels

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Stellah Bosire: A Lifetime of Fighting Health and Economic Poverty

Stellah BosireAlthough widely described as the largest slum in Africa, Nairobi’s Kibera is deeply rooted in community values and caring for your neighbor. While women face higher rates of health risks in varying forms, Dr Stellah Bosire persevered as a child engulfed in poverty. Feeling encouraged by her community and teachers, she became a highly influential human rights activist.

Childhood

Before Bosire was a Gates Foundation Goalkeeper and accomplished actor globally, she faced the same struggles that persist to this day in Kenya. Children were taught at a young age that odd jobs were necessary to provide basic needs for your family. Along with unsafe work opportunities, Bosire and nearly a third of women in Kenya have experienced sexual violence.

Despite the overarching strength instilled in the women around her, Bosire could not help but realize how much they are being held back due to inevitable health risks. For example, the neighborhood struggles with inadequate sanitation, while dangerous social norms blockade women into unfair cycles of poverty.

After falling into this cycle herself at 13 years old, she prioritized finishing school despite selling drugs to financially support her family. She studied the material and took her final exams after just two weeks, scoring the second-highest grade in her school, The Gates Foundation reports. It was this validation that showed Bosire the potential of her knowledge and gave her the confidence to work hard at solving the hardships her community has faced for years.

Bosire’s Career and Giving Back

Bosire attended the University of Nairobi’s School of Medicine, receiving a full scholarship. Her long list of accolades began compiling soon after beginning schooling. She has achieved a Bachelor of Science in Medicine and Surgery, a Master of Business Administration in Health Care Management, and a Master of Science in Global Health Policy. To cover all aspects of her activism, she is currently pursuing a Bachelor of Law at the University of Nairobi.

Bosire has excelled in several leadership positions, allowing her to expand her efforts and help those internationally. She served as vice-chair for Kenya’s HIV Tribunal, focusing on women in the healthcare system who were discriminated against due to their HIV status, The Gates Foundation reports.

Bosire has brought a more holistic approach to health care in Kibera, focusing treatment efforts based on the context of individual lives. In 2021, Bosire created the HerConomy initiative to fund projects that allow women to excel economically, The Gates Foundation reports. This program provides aid and workshops to make a reliable worker, such as loans for healthcare expenses, making soap and professionalizing women-owned small businesses.

Along with accumulating more than 5,000 members, Bosire has also had to overcome harmful gender norms. Men in her own hometown called her “the homewrecker” for trying to shift gender dynamics in the home, according to The Gates Foundation. As a result of this, she invited the men to community discussions to shift their perspective on how economic empowerment for women can benefit all.

Using Her Own Experiences

Coming from an unsafe and uncertain environment, Bosire has used her power to give back to her community. Her mother was ill her entire life, and after Bosire’s education and exposure to formal schooling, they recognized her condition as depression and schizophrenia. In her last year of schooling at the University of Nairobi in 2011, she had lost her mom to Aids related complications.

The work that Bosire has put back into Kibera is present in the whole community. After her mother’s death, she became heavily involved in HIV/AIDS treatment and generated multiple projects for women affected with HIV/AIDS.

Street Healing Program

Tending to women in Kenya and all over Africa, Bosire has also digitized the experience of economic prosperity. She is building a software program to ease the lives of women in the economy, in the form of saving/accessing funds and building credit for a profile in the formal banking system, according to The Gates Foundation.

In addition to women’s economic empowerment, Stellah Bosire also tends to everyone she can on the streets of Kenya. Bosire runs what she calls the “Street Healing Program,” where she walks the business districts in Nairobi, medical bag in hand, ready to help any homeless people who are in need of common treatments or wound cleaning, Nation reports.

With no limits to her selflessness, Stellah Bosire has proven through overwhelming adversity that good change is possible. She credits hard work and resilience for her success, a message that has been relayed back to Kibera. Bosire’s childhood friends and others in Kibera call her achievements a “community degree” since that is where its efforts will flourish, right at home.

– Rachael Wexler

Rachael is based in Chicago, IL, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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Husk Power Systems Fighting Energy Poverty in Africa

husk power systemsIn 2023, Husk Power Systems, an Indian-origin company, announced a $500,000 funding grant from Acumen’s Hard-to-Reach (H2R) initiative to help bring clean and affordable electricity to people in the Democratic Republic of Congo (DRC). With its focus on supporting clean and affordable energy to almost 80 million people in rural African areas, it aims to deploy 2,500 mini-grids across Africa by 2030. Since its launch in 2008 by Indian entrepreneur Manoj Sinha, the “Africa Sunshot” project has emerged as one of the most significant initiatives in the company’s history. It underscores Husk Power Systems’ commitment to providing affordable energy to rural communities, not only in India and Asia, where the company has been actively operating, but also in Africa, where it is now making a transformative impact.

Husk Power Systems Profile

In 2023, Time recognized Husk Power Systems founder and CEO Manoj Sinha as one of the most influential business leaders in climate and as a World Economic Forum Young Global Leader. Sinha, passionate about solving energy access challenges in rural areas through innovative microgrid solutions, has been working for decades to address these issues. He co-founded Husk Power Systems in 2008 alongside partners Gyanesh Pandey and Ratnesh Yadav. Headquartered in Fort Collins, Colorado, with offices in rural areas across Asia and Africa, the company has been launching energy power plants since its inception.

Positioning itself as an energy company dedicated to providing affordable energy solutions to rural areas, Husk Power Systems adopts a pay-as-you-go model, offering flexible, 100% renewable energy solutions. The company focuses on meeting the needs of households, small businesses and community services, ensuring reliable and sustainable power access. Additionally, Husk Power Systems maintains a strong focus on enabling a rapid and cost-effective energy transition. The company aims to align with not only national Indian electrification goals but also global targets, expanding its reach into Asian and, particularly, African markets.

Empowering the African Energy market

Husk Power Systems now has more than 200 operational sites in Africa and Asia, with an average of 16 mini-grids per month. As of 2022, the company was present in 12 communities in Nigeria, with a plan of “nearly 100 additional microgrids for future development.” In addition to providing innovative energy solutions, the company has created 130 jobs, including 80 full-time positions, as of 2023. Under its Africa Sunshot Initiative, Husk Power aims to deploy 2,500 operational mini-grids across six African regions over the next five years, expanding beyond Nigeria and Congo to areas like Nairobi and beyond.

While focusing on innovative energy solutions in Africa with a $2.5 million investment from the International Finance Corporation (IFC), Husk Power Systems also addresses the lack of electricity that limits opportunities for small businesses, agriculture and entrepreneurship. By providing reliable energy, they enable businesses to operate longer hours, increase productivity and create job opportunities in local communities.

Rural Gentrification and Development

Since 2008, Husk Power Systems has provided 400,000 homes and local businesses in rural communities with innovative electricity systems and has no intentions to stop developing innovative electricity solutions in the most vulnerable areas in Africa and Asia. Due to the company’s relentless and intensive work, starting from 2015, Husk Power Systems started to use hybrid systems that allow it to generate power 24/7 by synchronizing dollar and biomass gasification power plants. “Sunshot” project followed by another significant project “Husk Power Systems Investment” where company has decided to expand its work in rural areas of  Sub-Saharan Africa and South Asia powered up by equity investment totalling $43 million coming from International Development Finance Corporation (DFC) and Proparco showed the companies fast growing development and further movements towards the expanding of gentrification in needed areas.

Focusing on gentrification solutions enables companies to branch into connected ideas for enhancing employment in rural African and Asian areas. In addition to achieving high employment rates and fostering a friendly work environment, companies aim to create supportive training schemes that promote career growth for employees. By offering extensive management and technical skills training, the company nurtures talent both globally and locally, creating employment opportunities for a diverse audience.

Looking Ahead

With its fast-growing solutions, innovative approach and development of employment opportunities, Husk Power Systems demonstrates how true dedication and steady determination can transform rural areas, revitalizing their vulnerable economies and infrastructure. And while it begins with one man’s desire to change the world for the better, it eventually unites millions of dollars in investments, thousands of professionals and two continents to achieve its goal of gentrification for a brighter future.

– Liubov Linnyk

Liubov is based in London, UK and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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The DFC in Africa

dfc africaStarting in 2020, through the Better Utilization of Investments Leading to Development (BUILD) Act, the U.S. International Development Finance Corporation (DFC) was created by merging the Overseas Private Investment Corporation (OPIC) and USAID’s Development Credit Authority to expand the U.S. capacity for private sector-led growth in emerging markets. The DFC focuses on funding initiatives in Africa and around the world that improve sectors such as health care and infrastructure. While similar to USAID, the DFC operates as a separate entity.

Health Care Investments

The DFC has invested in health care in Africa by providing $1 million in equity to Kasha Global Inc., a women-founded and women-led e-commerce platform operating in Rwanda and Kenya. Kasha focuses on three core health care themes: access to health products, access to health information and job opportunities for low-income women. Both Kenya and Rwanda face high levels of period poverty due to the cost of sanitary products and a lack of education about menstrual health. In Rwanda, a single pack of sanitary towels costs between 700 Rwandan francs (about 71 cents) and 1,000 Rwandan francs ($1), roughly equivalent to a day’s wage for many women. In Kenya, the cost of sanitary pads can represent a significant portion of a woman’s daily income. A pack of sanitary pads typically costs between 70 to 75 Kenyan shillings (about $0.50 to $0.55), which could be a substantial expense for many. 

The high cost of sanitary products forces many women to choose between purchasing them or meeting basic needs like food. As a result, menstrual products are often considered a luxury. With funding from the DFC, Kasha has expanded its operations in both rural and urban areas of Kenya and Rwanda, increasing access to and education about sanitary products. This investment has helped address issues related to women’s care and has improved health outcomes in the region.

Africa Health Care Network

The DFC is helping to improve infrastructure and expand access to health care by providing funding to the Africa Health Care Network (AHN), the largest operator of dialysis centers in East Africa. A $5 million loan from the DFC enabled AHN to significantly expand dialysis centers and services across sub-Saharan Africa, particularly in Kenya, Rwanda and Tanzania. While part of a broader strategy to mitigate the impacts of COVID-19, the funding has also strengthened healthcare infrastructure in the region and improved access to lower-cost care. Without this investment, many communities in these countries would lack access to critical dialysis services.

Renewable Energy Projects

The DFC has invested in renewable energy projects in Senegal and Ethiopia to improve health care infrastructure resilience. In Senegal, DFC supported the 158-megawatt Taiba N’Diaye wind power plant near Dakar, which now supplies about 15% of the country’s power. Indeed, this cleaner, more reliable electricity helps stabilize operations in hospitals and clinics, improving patient care.

In Ethiopia, the DFC committed $1.55 million for the technical development of the Tulu Moye Geothermal project, located about 100 kilometers from Addis Ababa. The project involves building a 50-megawatt geothermal power plant, which will become Ethiopia’s first independent power plant. Once completed, it will stabilize the country’s power grid and ensure a consistent electricity supply for healthcare facilities.

DFC in Africa: Strengthening Infrastructure

While not a direct health care investment, the DFC’s support for renewable energy aligns with a broader strategy to improve health care access by strengthening infrastructure. Ethiopia’s commitment to harnessing renewable energy further reflects in the World Bank’s Geothermal Sector Development Project, which underscores the role of sustainable energy in supporting critical services like healthcare. The DFC’s approach highlights its commitment to innovative investment strategies that enhance healthcare access for vulnerable populations while also bolstering infrastructure development.

The DFC continues to play a crucial role in bridging the gap between private investment and global development. By funding health care, infrastructure and renewable energy projects, the DFC is not only improving lives but also fostering long-term economic stability in emerging markets. As the demand for sustainable solutions grows, its strategic investments will remain essential in driving progress and expanding access to vital services worldwide.

– Oliver Hedges

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

Photo: Flickr

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The $6.5 Billion Pledge: Syria’s Recovery Package

Syria's Recovery PackageOn March 17, international donors convened in Brussels and pledged nearly €6 billion (approximately $6.5 billion) in aid to revitalize Syria’s reconstruction efforts following the political transition after President Bashar al-Assad’s departure in December 2024. This financial commitment supports the country’s new leadership as it begins stabilizing and rebuilding after the civil war. The conference also aimed to reaffirm the global community’s commitment to a peaceful and inclusive future for Syria.

Discussions focused not only on physical reconstruction but also on strengthening civil society, expanding access to education and addressing widespread displacement. The event marked a renewed commitment to multilateral collaboration, bringing together more than 60 countries and international organizations to discuss not only funding but also sustainable strategies for Syria’s recovery.

Pledges for Syria’s Recovery Package

The European Commission reported that €4.2 billion (about $4.6 billion) of the pledged amount would be provided as grants, while €1.6 billion (about $1.7 billion) would come as low-interest loans. European Commission President Ursula von der Leyen announced that the EU is increasing its pledge to Syrians in the country and the region to almost €2.5 billion (about $2.7 billion) for 2025 and 2026.

Among major donor countries, Germany committed approximately €300 million (about $326 million), with more than half designated for aid within Syria and the remainder for displaced Syrians abroad. The United Kingdom (U.K.), despite reducing its foreign aid budget to 0.3% of GDP, pledged up to $208 million. The United States (U.S.), represented by Deputy Assistant Secretary for the Levant and Syria Natasha Franceschi, did not announce a new pledge, noting its status as the largest contributor to Syrian aid over the past 14 years and indicating that foreign aid commitments are under review.

Context and Challenges

The pledging conference comes at a pivotal time for Syria. The new leadership is tasked with unifying a country fragmented by war. Rebuilding efforts face obstacles, including a shattered economy and infrastructure, with United Nations (U.N.) estimates putting reconstruction costs between $250 billion and $400 billion. Security threats persist. Recent clashes, including an ambush on a Syrian security patrol and retaliatory attacks from supporters of the new government, have resulted in civilian casualties. These ongoing incidents have led some donors to delay investment until more stable conditions are confirmed.

International Community’s Role in Syria

The international community’s pledges demonstrate support for Syria’s transition toward peace and development. President Von der Leyen emphasized the urgency of assistance, stating, “At this critical time, the people of Syria need us more than ever.” However, this year’s total commitment falls short of the €7.5 billion (about $8.1 billion) pledged last year, reflecting financial constraints and competing global priorities.

Syria’s Path Forward

Syria’s recovery potentially depends on efforts to restore essential services, rebuild infrastructure and foster reconciliation among diverse communities. Syria’s recovery package represents an important step in addressing urgent humanitarian needs and laying the groundwork for long-term recovery. Coordination between the Syrian government, international donors and humanitarian organizations could be essential to ensure the transparent, inclusive and effective use of aid.

– Leighton Webber

Leighton is based in London, UK and focuses on Politics for The Borgen Project.

Photo: Flickr

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Iraq’s Reconstruction and Development: Markets for UK Firms

Iraq’s Reconstruction and DevelopmentBeginning in 1980, Iraq endured years of conflict, including the Iraqi-Iranian War, the Kuwait Invasion, the U.S.-led military invasion and ethnopolitical violence. After the U.S.-led invasion, Iraq’s annual gross domestic product (GDP) growth dropped from -8.2% in 2002 to -36.7% in 2003 when the invasion began.

Poverty became a major concern and as of 2024, 17.6% of the population still lives below the poverty line, a decline from 21.5% in 2022. The government is taking steps toward Iraq’s reconstruction and development in light of these challenges. In January 2025, Prime Minister Mohammed S. Al-Sudani met with prominent U.K. business leaders to showcase the steps Iraq is taking to improve the investment climate.

Iraq’s Reconstruction and Development Efforts

During the Iraqi-Iranian War, Iraq accumulated significant debt. After the war, Iraq invaded Kuwait, which made the United Nations (U.N.) place severe sanctions on Iraq. The sanctions banned all imports and exports with Iraq, which rendered Iraq unable to obtain building materials from abroad to begin reconstruction.

In the following years, the U.S.-led invasion and ethnopolitical violence further deteriorated the remaining infrastructure, strained the economy and displaced countless Iraqis, pushing many into poverty. After the 2003 invasion, very little was done to support Iraq’s reconstruction and development. It was after the Islamic State in Iraq and Syria (ISIS) was defeated in 2017 that the prime minister announced that the rebuilding effort would require $88 billion.

The destruction covered around 80% of some cities and significant funding was required to remove the war remnants, including unexploded bombs, land mines and IEDs that had remained after the conflict.

The National Development Plan

However, in 2018, Iraq released its National Development Plan, which included a reconstruction and development framework for 2018-2030. The plan comprises 19 pillars that will target areas like education, employment, industry, social protection, health and more. The plan highlights many areas that can improve the quality of life for its citizens and promote economic growth.

Some of these include clearing “explosive hazards,” rebuilding damaged housing and buildings, upgrading electricity infrastructure and strengthening transportation and logistics services to encourage private sector recovery and expansion. It also involves initiating labor force surveys to identify the workforce’s needs, enhancing local inclusive governance and planning community needs, including those of displaced persons, youth and women.

Iraq-UK Partnerships and Investment Opportunities

In January 2025, Iraq’s Prime minister met with U.K. business leaders to explain the country’s plan to attract foreign investment and improve the Iraqi business environment. The two countries signed a Partnership and Cooperation Agreement (PCA), including a range of export agreements and a trade deal of more than $12 billion. This agreement built upon a history of economic collaboration between Iraq and the U.K.

In 2024 alone, the U.K. participated in $1.5 billion worth of projects in Iraq. One notable initiative was a partnership with Vodafone, a multinational telecommunications company based in the U.K. In late 2024, Iraq authorized Vodafone to launch the country’s first 5G network, marking a significant step in the nation’s technological advancement. Beyond telecommunications, U.K. firms have expanding prospects in the construction, petrochemicals and energy sectors. In Iraq, building material accounts for around 30% of imports. Additionally, natural gas projects are progressing in nearly every oil field in the country, providing opportunities for U.K. firms.

During the meeting, the Prime Minister of Iraq also explained that “Reforms have been carried out in the taxation and customs systems, company registration processes and all approvals related to investment opportunities.” Alongside these reforms, Iraq will provide sovereign guarantees to the private sector, utilize “global intermediary banks” to conduct all financial transactions and allocate $100 billion to the investment budget. These reforms and financial commitments create an environment where U.K. firms can significantly contribute to Iraq’s economic growth and poverty reduction.

Conclusion

Iraq’s efforts to attract foreign investment, particularly through its U.K. partnership, are key to stimulating economic development and reducing poverty. U.K. firms can help those living under the poverty line in Iraq by contributing to construction, energy and petrochemical-based projects. Improved roads, ports, electricity and overall economic conditions can provide Iraqis with increased access to new markets domestically and internationally. The World Bank highlights that trade and investment can stimulate developing economies, increase higher-quality job opportunities and raise productivity.

With 60% of Iraq’s population falling within the working-age bracket (15-64), the country presents U.K. firms with a substantial labor force. Beyond economic benefits, this also creates an opportunity to address social challenges. Expanding employment prospects can help prevent youth from being pushed into violence, terrorism and poverty due to a lack of quality job opportunities, fostering greater stability in the region.

– Haley Parilla

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

Photo: Pexels