Information and stories about economy.

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Uganda Vision 2040: Foreign Direct Investment

Uganda Vision 2040Four decades after the implementation of the Bretton Woods Institutions’ controversial financial liberalization policies on the African continent, Uganda is retaking control of its economic future. This means cutting dependency on aid and focusing on sustainable economic growth. As stated in Uganda Vision 2040, the Ugandan government envisages “A Transformed Ugandan Society from a Peasant to a Modern and Prosperous Country within 30 years.” Key to fulfilling this aspirational vision is foreign investment, the encouragement of which forms a principal role of the country’s diplomatic service.

Moving Beyond Aid

The Ugandan government’s vision for the nation’s future is one of economic independence and prosperity, a vision that a high dependence on aid renders impossible. Recent years have also seen a sharp decline in the global aid budget, with many wealthier nations slashing the amount spent on overseas assistance in favor of internal spending.

This comes at a time when poverty is still a persistent challenge in Uganda. Using the World Bank’s international poverty line of $3 a day, 59.78% of Uganda’s 50 million inhabitants live in poverty. It is important to note, however, that this figure was more than 80% before the turn of the century, showing remarkable progress. Using Uganda’s national poverty line, the percentage of people in poverty has dropped to 16.1%, though this figure stands at 74.2% in the arid northeastern region of Karamoja.

The Borgen Project spoke with H.E. Philip Rukikaire, Uganda Deputy High Commissioner to the U.K. He said, “Whereas Uganda has relied heavily on multilateral and bilateral aid since the late 1980s to support the recovery of the economy and also to transform into a middle-class economy, the government acknowledges that Aid is not sustainable.”

Set Targets

Recognizing the unsuitability of an aid-dependent economy to Uganda’s specific context, prompted the Ugandan government to implement Vision 2040, a 2013-launched document outlining the steps required to increase per capita income to $9,500, with a focus on driving investment.

Ten years later, Uganda Vision 2040 was supplemented with the Tenfold Growth Strategy. “The Tenfold Growth Strategy is the specific economic blueprint designed to achieve the quantitative leap required to meet the Vision 2040 goal,” said Ambassador Rukikaire. The strategy is anchored on four high-potential sectors: agro-industrial, tourism, mineral development (including oil and gas) and science, technology and innovation (ATMS). Many see these sectors as key to growing the economy tenfold from $50 billion to $500 billion by 2040.

Potential for Investment in Uganda

Uganda’s potential for foreign investment is vast. In 2024, the inward flow of Foreign Direct Investment (FDI) totaled $3.3 billion, an almost 200% increase from 2019. With a young, rapidly growing population, fertile soils, a substantial market size and regional integration through the East African Federation — and more recently the African Continental Free Trade Agreement — there are many advantages to potential investors.

As part of its broader strategy, the Government of Uganda has taken major steps to increase investment in the country. These include a 75% reduction in tariffs on machinery for factory use and a 100% tax deduction on costs related to training, research and mining. Additionally, the government has also offered additional benefits to incentivize investment in ATMS.

The Role of Foreign Service

A large role in stimulating investment in Uganda is played by the country’s diplomats. Indeed, in a recent meeting of Uganda’s Heads of Mission, the integral role of the foreign service in national development was restated. In the United Kingdom (U.K.), the Uganda High Commission works to encourage investment in each ATMS sector. This includes promoting Uganda Coffee, facilitating partnerships between NHS trusts in the U.K. and medical institutions in Uganda, and partnering with the Uganda Tourism Board to bring attention to Uganda’s unique tourist offerings.

U.K. Investments in Uganda

Many agreements have already been made, with the total U.K. Export Finance (UKEF) portfolio with Uganda set to surpass $1 billion in the coming year.

  • Kabalega International Airport. To support Uganda’s oil exploration, construction began in April 2018 on a second international airport in the country. Located in western Uganda, the project was funded by a €264 million loan from the U.K.’s Standard Chartered Bank and UKEF and carried out by U.K.-based infrastructure company COLAS. At the time, it represented the largest ever UKEF loan to an African government. Ambassador Rukikaire stated, “The airport is near the Albertine Graben area where oil wells at Kingfisher and Tilenga projects are in advanced stages of producing ‘first oil’ for sale (2026). It will facilitate cargo transportation but also improve connectivity around the country and region for tourism and trade, creating many jobs in the area in different sectors.”
  • Kampala City Roads and Bridges Upgrading Project (KCRBUP). In a project fully funded by UKEF, the Kampala Capital City Authority will upgrade and rehabilitate more than 118 roads across the capital, directly employing up to 300 Ugandans. The €250 million agreement was signed with COLAS and will overhaul the road network.
  • Kitgum-Kidepo Road. In Uganda’s northeast, UKEF facilitated a loan of up to €110.5 million from Standard Chartered Bank to upgrade the 116 km Kitgum-Kidepo Road. Ambassador Rukikaire noted, “For local communities, the project aids in developing the Karamoja sub-region, one of the poorest in Uganda, by improving market access for agricultural products and facilitating trade with South Sudan and Kenya. For the tourism sector, it transforms the currently difficult, dusty or muddy access road to the Kidepo Valley National Park into a reliable route, significantly boosting visitor numbers and unlocking the region’s vast tourism potential.”

Current Challenges

Despite progress, challenges remain in actualizing the aims of Uganda Vision 2040. Corruption is a persistent barrier to investment, as is insecurity in the country’s border regions with South Sudan and the Democratic Republic of the Congo. Though there have been infrastructural improvements, investors remain disincentivized by poor connectivity.

Speaking on the U.K.’s relationship with Uganda, Ambassador Rukikaire stated, “The Labour government has signaled in its new ‘Africa Approach’ strategy its intention to prioritize Uganda in terms of investment that ultimately increases youth employment.” Through its international relationships, Uganda continues to make positive strides toward achieving the goals of Uganda Vision 2040 and the Tenfold Growth Strategy. Though challenges persist, the country demonstrates how to reduce poverty without overreliance on aid.

– Henry Weiser

Henry is based in Cornwall, UK and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr

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How Democracy in Ghana is the Recipe for Economic Growth

Democracy in GhanaGhana is demonstrating that stable democratic institutions provide the foundation for sustained economic expansion. The West African nation achieved 7.2% GDP growth in the third quarter of 2024, the highest quarterly expansion in five years, while maintaining its status as one of Africa’s most enduring democracies with over 30 years of uninterrupted democratic governance since 1992.

Democratic Stability Attracts Investment

Ghana’s consistent democratic transitions have created an environment where businesses can plan long-term investments with confidence. The country maintained its 6.30 point democracy score in 2023, ranking sixth regionally and 65th worldwide on the Economist Intelligence Unit’s Democracy Index, significantly outperforming the regional average. This political stability enabled Ghana to attract $331 million in tech sector investment in 2023, with the industry now valued at $2.6 billion.

Freedom House continues to rate Ghana as “Free” with one of the highest scores in sub-Saharan Africa. This strong governance framework has proven crucial for economic recovery, as Ghana successfully completed a $13 billion Eurobond exchange in 2024 and secured an IMF-supported program that helped stabilize the economy after a 2022 crisis.

Agriculture Sector Powers Job Creation

Transparent governance enabled the effective implementation of agricultural programs that are transforming rural economies. The Planting for Food and Jobs Phase Two program, launched in August 2023, represents a comprehensive approach to agricultural modernization across 11 commodity value chains including grains, starchy staples and vegetables.

The agriculture sector expanded by 5.0% in the first half of 2024, employing roughly 75% of the rural population and accounting for 21% of GDP. The Ministry of Food and Agriculture’s 2024 budget exceeded 3.3 billion Ghana cedis, with the government contributing 82% of total budgetary allocation. Between 2017 and 2022, fertilizer application rates increased from eight kilograms per hectare to 25 kilograms per hectare, while certified seed distribution rose from 2,000 metric tons to 36,000 metric tons.

The Ghana Economic Transformation Project has generated 2,438 direct jobs, more than double its 1,000 job target, with 1,071 jobs created for women. Firms supported by this World Bank initiative reported an average 18% increase in gross sales, while women-owned businesses achieved a 12.68% increase.

Technology Sector Drives Innovation

Democratic freedoms and independent judiciary systems have fostered a thriving technology ecosystem. Ghana ranks 15th out of 47 African countries for ICT use in the 2024 ICT Development Index. The digital economy is currently valued at approximately $1 billion and could reach $5 billion by 2030.

The Information and Communication subsector grew 17.9% in the first quarter of 2024, demonstrating the rapid expansion of digital services. Furthermore, Ghana’s tech ecosystem raised an estimated $66 million by the third quarter of 2024, with Fido securing a $30 million Series B funding round. The recently concluded eTransform project established operational infrastructure for the Cyber Security Authority, contributing to Ghana ranking second in Africa in the 2024 Global Cybersecurity Index.

Energy Sector Embraces Renewable Transition

Good governance structures enabled the government to address energy sector challenges while advancing renewable energy goals. In 2024, the Rural Electrification Program connected 276 rural communities to the National Grid, increasing the access rate from 88.95% to 89.03%. Ghana targets reaching 90% electrification by the end of 2025.

The government’s Renewable Energy Master Plan sets a target of 1,363.63 MW of grid connected renewable energy by 2030. Renewable energy capacity stood at close to 1,700 megawatts in 2022, following an increasing trend since 2012. The Energy Transition and Investment Plan announced in September 2023 estimates that Ghana will need more than $550 billion in capital investment to achieve net zero by 2060, with the majority of spending directed to the transport and power sectors.

Democracy and Economic Growth in Ghana

The situation in Ghana illustrates how democracy and democratic institutions create conditions for sustainable economic development. Despite facing a severe macroeconomic crisis in 2022, with debt reaching 92.6% of GDP, Ghana’s democratic framework enabled peaceful implementation of necessary reforms. Indeed, by 2024, growth rebounded to 5.7%, and second quarter 2025 real GDP increased 6.3% year on year, led by services and agriculture sectors.

The December 2024 elections demonstrated democratic resilience, with former President John Dramani Mahama winning 56.4% of the vote in a peaceful transition. This political stability continues to position Ghana as a model for how democracy serves as a recipe for economic growth across West Africa.

– Jawad Noori

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

Photo: Flickr

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The Sprawling Indian Slum Economy: Dharavi

The Sprawling Indian Slum Economy: Dharavi Dharavi, Asia’s largest slum, is located in the heart of Mumbai. It is a symbol of urban poverty. Beneath the visual chaos and tightly packed lanes lies a highly functional Indian slum economy. This informal economy includes thousands of micro-enterprises such as leather workshops, recycling businesses and garment units, among many others. Offering employment to tens of thousands, this remarkable local economy generates an estimated $1 billion annually.

The Invisible Engine

Dharavi has thousands of small workshops and micro-enterprises. Many homes function as production units, producing goods such as leather products, textiles and jewelry, as well as niche items like plastic weaving, with some reportedly being exported. Although these claims cannot be fully verified through official documentation, word-of-mouth accounts suggest widespread trade activity. Some sources cite that there are upwards of 20,000 mini-manufacturing units with cumulative annual outputs close to $1 billion.

Margins of the Marketplace

While the Indian slum economy is flourishing, it also harbors limitations. Informality contributes to a lack of protection, precarious working conditions and exploitation. Most workers lack formal contracts and statutory benefits. Many face unsafe factory and construction conditions that can result in illness or even death, as safety measures are rarely enforced.

These problems have become part of a broader debate around redevelopment. Some advocates, such as Adani Group and its supporters, have cited poor working conditions as justification for redevelopment plans that could dismantle the existing economy and lifestyle.

Risks of Redevelopment

Redevelopment could, in theory, benefit the informal economy through formalization, safety measures and improved infrastructure. However, current plans—particularly the Adani Group’s redevelopment project—have raised significant concerns. According to the opposition government of India, the project appears to prioritize private gain over community welfare, with the potential to displace up to 700,000 people. Some alternative residential sites proposed by the government are located far from the existing economy and income sources of current residents.

Rahul Gandhi stated, “This government handed over Dharavi to Adani,” accusing it of “enriching cronies.” For many Dharavi vendors, the plan “has raised significant fears amongst residents over their livelihood, education and opportunities,” according to Land Conflict Watch. The industries that thrive here cannot be confined to traditional business models based on standardized land parcels or enclosed units without open yards or foot traffic access.

What Dharavi Needs

Dharavi does not need to be replaced—it has the potential to be part of India’s urban future. While redevelopment is often framed as a way to bring safety, order and opportunity, the current plans, particularly those led by private players like Adani, risk doing the opposite. The Dharavi Bachao Andolan (Save Dharavi Movement) fears that redevelopment could prioritize land acquisition over community welfare.

The informal economy here is not accidental but rather a functional system with a “thriving micro-economy” built on proximity, shared space and dense networks, according to a report by the Toda Peace Institute. For redevelopment to genuinely benefit this community, it must consider how residents already live and work. As Land Conflict Watch notes, the government’s decisions “indicate that the government is prioritising profits for [the] developer over the interests of Dharavi residents.”

If implemented inclusively, redevelopment could bring safer conditions, better infrastructure and stronger worker protections. However, that would require ensuring that residents are active participants in planning processes, as noted by Slum Dwellers International. This case highlights the importance of approaching informal economies through inclusion and collaboration rather than replacement.

Looking Ahead

Dharavi’s resilience shows that progress and preservation can coexist. With inclusive planning that safeguards jobs, strengthens safety and involves residents in decision-making, redevelopment can improve living conditions while protecting livelihoods. If done responsibly, Dharavi can stand as a model for community-driven urban renewal in India.

– Maryam Qutbuddin

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

Photo: Flickr

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Senegal’s Film Industry: Source of Economic Opportunity

Senegal’s Film Industry: A Cultural Voice and Source of Economic OpportunitySenegal’s independent film industry has become a vital force in shaping the country’s cultural identity and creating economic opportunities for creative workers. Once silenced by colonial influence, Senegal’s filmmakers have reclaimed the screen to share local stories that reflect their people’s experiences, struggles and resilience. Currently, the industry not only preserves Senegal’s cultural heritage but also generates income, creates jobs and reduces poverty through the growth of the creative economy.

Post-Colonization Spark

After gaining independence from France in 1960, Senegalese artists began challenging colonial narratives that had long dominated the nation’s media. During this period, many Senegalese citizens were still influenced by European ideals. Even the country’s president preferred speaking French over native languages because it was viewed as more “professional.” This tension between colonial legacy and national identity became a central theme in early Senegalese cinema.

Ousmane Sembène, often called the father of African cinema, was one of the first filmmakers to use film as a tool for cultural liberation. His groundbreaking works, such as Xala and Ceddo, exposed the lingering effects of colonialism, class inequality and political corruption. Despite facing censorship from President Léopold Sédar Senghor, Sembène’s films gave Senegal a voice and paved the way for future generations of filmmakers. His legacy established cinema as a medium for self-expression, education and national pride.

Filmmaker Recognition

In recent years, Senegal’s film industry has experienced a creative and financial revival. Filmmakers such as Alain Gomis and Mati Diop have gained international recognition at major festivals, including the Pan-African Film Festival (FESPACO). These events not only celebrate African talent but also help globalize Senegalese cinema, generating exposure and financial opportunities for local artists. However, many award-winning Senegalese films are still co-produced with Western partners, which can sometimes limit creative control and authenticity.

To strengthen its domestic industry, Senegal has taken steps to invest in its creative infrastructure. In 2022, filmmaker Toumani Sangaré opened a film school in Dakar to train young professionals and reinvest in local communities. This initiative helps keep revenue within the country and promotes job creation for writers, directors, technicians and actors.

Cinematic Beauty and Funding Restraints

Senegal’s coastal beauty and cultural richness have also attracted major international productions. Platforms like Netflix have begun filming in Senegal because of its scenic landscapes and favorable climate, further boosting local employment and technical training opportunities. Regional television production has expanded rapidly, with content now available on YouTube, Amazon Prime and other streaming services. This digital accessibility has widened the audience for Senegalese films, helping creative workers reach global markets and generate sustainable income.

The economic impact of creative growth is significant. As film production increases, so do opportunities for small businesses in catering, transportation, costume design and tourism. Each new production stimulates local economies, providing a ripple effect that benefits entire communities. Additionally, international co-productions and streaming partnerships introduce new revenue streams that support long-term economic stability.

However, challenges remain. Senegal’s film industry still faces limited infrastructure, restricted access to funding and a shortage of domestic theaters. Many filmmakers rely on international grants or co-productions to finance their projects, which can limit their creative independence. Expanding government support through funds such as FOPICA (Le Fonds de Promotion de l’Industrie Cinématographique et Audiovisuelle) and encouraging private investment could help the industry become more self-sustaining.

Looking Ahead

Despite these barriers, the momentum of Senegal’s creative sector shows how culture and economy are deeply connected. By amplifying authentic Senegalese voices and stories, the film industry strengthens national identity while generating new paths out of poverty. Each project filmed in Dakar or Saint-Louis represents not just art but also economic empowerment, creating jobs, inspiring education and fostering community development.

– Miranda Yacynych

Miranda is based in Pittsburgh, PA, USA and focuses on Business and Good News for The Borgen Project.

Photo: Flickr

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Poverty, Digital Recruiters and Sex Trafficking in South Korea

Sex Trafficking in South KoreaSouth Korea glitters as a high-tech, high-income society. Yet beneath the sheen, a less visible crisis persists. Sex trafficking in South Korea is rooted in economic vulnerability, gender inequality and the misuse of migration and entertainment visa systems. Safety from sex trafficking traps is not only a societal struggle, but a struggle for anyone online, as many perpetrators dwell in chat rooms and live streams. The cases of the “runaway teen,” the migrant entertainer and the mother struggling to survive intersect here, not in spite of wealth, but because inequality persists.

Vulnerability in the Land of Affluence

Despite being classified as a high-income country, South Korea’s economic growth has not ended deep vulnerability for certain populations. According to the RAND Corporation, South Korea continues to have one of the largest gender pay gaps among the Organization for Economic Cooperation and Development economies (OECD), placing many women, especially single mothers, in precarious positions both financially and socially. Unfortunately, with that trend set, much of the evidence points to traffickers seeking the most impoverished, socially isolated and digitally disconnected people when preying on potential victims.

Online Exploitation

The U.S. State Department’s 2024 Trafficking in Persons (TIP) Report finds that many victims in South Korea are South Korean nationals, such as teenage girls, runaway youth and women in marginalized employment. Traffickers exploit victims online using debt traps, deceptive modeling opportunities or entertainment jobs. Children and adolescents in South Korea face sexual exploitation through chat apps and live-streaming, as they aren’t monitored by parents as much as other social media sites.

Human Rights Watch reported, “The overwhelming majority of the people targeted in digital sex crimes are women—80% in spy-cam cases.” Many victims are persuaded to interact with fake images, as well as false assurances of safety, to be vulnerable and open with the perpetrator. Once lured in, individuals are manipulated into exposing themselves, fearing that their reputation, relationships and personal safety are at risk.

Migration, Entertainment and Tourist Visas

Foreign women from Eastern Europe, Southeast Asia and the former Commonwealth of Independent States (CIS) enter South Korea under entertainment visas, tourist visas or other categories. A Korean academic study reveals that many women from Russia and Uzbekistan entered the country under tourism or spousal visas. However, a lot of those women transitioned into bar or club work and found themselves unable to exit due to debt or coercion.

A 2023 report by the Korean Women’s Development Institute (KWDI) states that victim identification remains weak; many migrant women do not recognize they are victims or fear deportation, hindering access to services.

Digital Frontlines and Hidden Coercion

The sex trafficking network in South Korea takes advantage of the country’s highly connected society. Chat apps, encrypted platforms and live-streaming are used to groom and traffic youth and adults alike. The infamous “Nth Room” case targeted young people through Telegram, demanding sexual content for cryptocurrency payments. This is not unique, as online platforms are common for recruiting people into sex trafficking.

Won Eun-ji, a university student who researched Nth Room, said, “They treated women, children and adolescents like products, not human beings.” Eun-ji clicked into a chatroom, thoroughly investigated it and came to realize the horrors associated with online predators. The lengths abusers went to satisfy themselves were overwhelming, causing him to tell his experiences to media outlets to help the public understand South Korea’s hidden sex slavery market.

Why Addressing Poverty and Inequality Matters in South Korea

Trafficking isn’t only a “developing-world” phenomenon. Poverty, limited social support and gendered economic oppression exist in advanced societies and they create ripe conditions for exploitation. In South Korea, youth who run away due to family conflict or educational pressures find themselves with nowhere to turn, making them susceptible to exploiters and sex trafficking.

A 2021 ECPAT study found that exploited male and female youth alike cited social isolation, stigma and lack of safe options as key vulnerability factors. Prevention must not only target “traffickers” but also the structural conditions, such as housing instability, youth outreach, migrant worker protections and a stronger social safety net.

Government Response

South Korea was upgraded to Tier 1 in the 2024 TIP Report, signaling progress in law enforcement, victim services and policy. However, significant gaps remain as victims still sometimes face investigation or deportation rather than protection. In a KWDI research report, experts say identifying victims when they do not self-identify, are undocumented or manipulated through various debts remains the most difficult area of investigation.

Victim identification among youth, migrants and men remains weak, as well as poverty-related vulnerabilities being rarely front and center in anti-trafficking strategies. Survivor-centered reforms are essential, incorporating safe return paths, debt relief, affordable housing and migrant legal aid.

What Can Be Done?

Much effort is focused on enforcement matters, but those alone isn’t enough. Expanding youth outreach and safe shelters for runaway or at-risk adolescents is essential, as well as increasing affordable housing and childcare supports for women with low income, reducing their vulnerability to coercion. Other measures that could help include strengthening protections and contract transparency for migrant entertainers and workers, such as cancelling passport seizure and providing legal recourse without fear of deportation.

Efforts to collaborate with tech platforms to detect grooming, enforce KYC and monitor financial flows linked to trafficking are essential. These measures must be complemented by policies that integrate poverty-reduction strategies into anti-trafficking frameworks, recognizing that economic justice is a fundamental aspect of human rights protection.

It’s Not Over

South Korea’s economic success should not overshadow the fact that pockets of vulnerability remain where traffickers operate, especially online. Poverty, gender inequality, digital recruitment and migration precarity form a potent risk matrix. Ultimately, the measure of a country’s prosperity is how it protects its most vulnerable, not just how many skyscrapers it builds.

– Nicole Fernandez

Nicole is based in Reno, NV, USA and focuses on Global Health for The Borgen Project.

Photo: Pexels

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The Hidden Power of Food Tourism in Latin America

Food Tourism in Latin AmericaLatin America is rapidly emerging as one of the world’s most vibrant culinary destinations, attracting tourists from across the globe to experience regional dishes and rich flavours. While tourism is widely recognized as vital to the economic stability of many countries, food tourism in Latin America is astonishing in its financial impact. In 2023 alone, this market generated an impressive $927.9 million and is expected to grow by nearly 20% by 2030.

The undeniable influence of tourism has prompted Latin American countries to leverage visitor spending for domestic growth and development strategically.

Indigenous Groups

Latin America preserves its centuries-old heritage through its food practices. Travelers eager to experience authentic Latin American cuisine, rooted in rituals, customs and traditions that date back more than 2,500 years, help Indigenous communities flourish. For instance, the Oaxaca restaurant in Mexico, located in a state that is home to 15 Indigenous groups, immerses tourists in food preparation and sharing rituals.

It also celebrates the natural cycles of food growth and teaches visitors about the spirituality behind harvests and produce grown on sacred land. Marketing this as an attractive venture for tourists reinforces Indigenous influence within the social fabric. It sustains livelihoods by creating higher demand for their unique products and farmland, often their primary source of income.

Through tourism, these communities can strengthen their position in society and preserve a sense of continuity that might otherwise fade away.

Local Sourcing

Latin American restaurants prioritize sourcing local ingredients and supplies, which play a crucial role in revitalizing their communities. For example, Restaurante Manu in Brazil exclusively sources from independent distributors within a 300-kilometer radius, crafting unique dishes inspired by the harvests of local farmers, fishers and dairy producers. Its use of regional ingredients, such as purple potatoes, quinoa and maize and partnerships with independent, often family-run distributors, strengthen community ties.

It also celebrates the region’s rich biodiversity and culinary traditions through a contemporary lens. This approach makes food tourism in Latin America a key driver of economic prosperity. It supports sustainable livelihoods for small-scale producers, attracts new contributors, strengthens domestic markets and fosters a fairer food chain.

As a result, this distributed profit breathes new life into local communities, reviving shuttered restaurants and stimulating agricultural production. By dining at authentic restaurants, tourists help ensure that the money, time and effort communities invest in putting food on their plates are reinvested into improving local residents’ and businesses’ quality of life.

Social Change

Latin America weaves culinary art with social change. Revenue generated from food tourism in Latin America is funneled into development programs, creating meaningful improvements for the local communities of high-traffic tourist destinations. The community-owned Parwa Restaurant in the Peruvian capital capitalizes on the steady stream of 1,500 travelers that pass through the valley.

It reinvests its profits into collective initiatives such as an internet-connected computer center and the installation of water tanks across 45 family homes. In partnership with the Planterra Project, Parwa Restaurant launched a scholarship program for youth in underprivileged areas, training them in culinary arts and business strategy to help shape brighter futures. The restaurant also uses tourism revenue to expand employment opportunities within the community, offering monthly salaries, health insurance and professional development for local residents. The security and comfort resulting from the benefits of food tourism are amplified tenfold.

In Summary

Eating locally while on holiday allows tourism revenue to support meaningful community projects and outcomes. Showcasing Latin American cuisine on the global stage sparks a chain reaction, renewing national pride in ancestral culinary traditions, stimulating rural markets and enabling long-term social improvements to thrive. In this way, food tourism in Latin America not only preserves the spirit of its heritage but also flourishes because of it, creating a cycle of cultural and economic vitality.

– Emily Wooster

Emily is based in Birmingham, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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Mozambique’s Gas Boom: Hidden Frontier for US & UK Businesses

Mozambique’s Gas BoomMozambique, long considered one of Africa’s most underserved nations, is rapidly transforming into a strategic frontier for foreign investment. At the heart of this shift is the country’s liquefied natural gas (LNG) sector. In Mozambique, multi-billion-dollar projects like Coral South and the newly approved Coral North are unlocking some of the world’s largest untapped gas reserves.

Once operational, these ventures are expected to propel Mozambique into the ranks of the top LNG exporters. They will create ripples across global energy markets and open the door to a new wave of commercial opportunities in support of Mozambique’s gas boom.

Opportunities Beyond Extraction

While the LNG projects themselves are monumental, the real story extends far beyond gas extraction. As production scales up, Mozambique faces immense demand for supporting infrastructure, from ports and pipelines to power grids and roads, much of which remains underdeveloped. This is where U.S. and U.K. companies can play a transformative role.

Firms specializing in construction, renewable-gas integration and smart-grid technologies are well-positioned to secure lucrative contracts and help build the backbone of Mozambique’s energy economy. The ripple effect also touches a range of secondary industries. With energy companies required to meet local content mandates, there is a growing need for partnerships with domestic suppliers and investments in workforce training.

This opens opportunities for foreign firms to provide technical expertise, vocational education and digital platforms that enhance supply chain transparency and efficiency. Services like environmental monitoring, data analytics and risk management are areas where Western firms have strong expertise and are increasing in demand.

Navigating Risks and Realities

Mozambique’s LNG potential comes with significant challenges. Political instability and insurgent violence in the northern Cabo Delgado Province, where much of the gas infrastructure is located, have disrupted projects in the past. TotalEnergies’ $25-30 billion LNG development, for example, was halted in 2021 due to security concerns and is only now preparing to resume.

These realities underscore the importance of risk-management solutions, from security services and insurance to governance consulting, all areas where foreign firms can contribute valuable capabilities. International institutions and export-credit agencies are also stepping in to mitigate risk. The U.S. Export-Import Bank, for example, has provided $4.7 billion in financing to support LNG development.

Multilateral banks are also exploring ways to stabilize the region and attract more investors. Such mechanisms lower entry barriers for private companies and signal growing confidence in Mozambique’s economic future through a gas boom.

Fueling Broader Development

The significance of Mozambique’s gas boom extends beyond energy exports. LNG revenues could finance major improvements in education, health care and public services, while expanded infrastructure will support agriculture, manufacturing and other non-energy sectors. As the economy diversifies and consumer spending grows, new markets for goods and services will emerge, creating a virtuous cycle of growth that benefits both local populations and international investors.

Profit and Purpose Aligned

For U.S. and U.K. businesses seeking strategic entry points into the Global South, Mozambique represents more than a commercial prospect; it is a chance to be part of a nation’s transformation. By investing not only in extraction but in the broader ecosystem surrounding LNG, companies can align profit with long-term development goals. Mozambique’s gas boom is about more than energy; it’s about building the foundations of a new economy.

For those willing to look beyond traditional markets, this hidden frontier offers both strategic advantage and lasting impact.

– Nilay Ersoy

Nilay is based in Cambridge, MA, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Cannabis Transforms Poverty in Saint Vincent and the Grenadines

Poverty in Saint Vincent and the GrenadinesIn 2018, Saint Vincent and the Grenadines decriminalized possessing up to two ounces of marijuana and Parliament passed laws to establish a medical cannabis industry. Vincentians use and appreciate the medicinal properties of cannabis, as well as the pivotal role it can play in reducing poverty in Saint Vincent and the Grenadines. In 2024, 18% of Vincentian adults were unemployed; youth were twice as likely as adults to be unemployed.

Additionally, the country’s volcano (La Soufrière) erupted in 2021. Coupled with the then-recent COVID-19 pandemic, the country faced huge economic setbacks. Whereas before the pandemic, only 4% of children in Saint Vincent were below the poverty line, this has now risen to 18%. Therefore, due to the industry’s up-and-coming market, utilizing cannabis in Saint Vincent is key to recovering the economy and securing jobs for unemployed young people.

Boosting the Economy

Ironically, it is the volcanic soil that makes cannabis in Saint Vincent high-grade and fast-producing. As a result, cannabis became an instrumental trading tool during the country’s recovery from the volcanic eruption. More recently, Saint Vincent has reported more than EC$60 million (slightly above $22 million) in private investment in its cannabis industry.

Beyond just trading, the small country is also now gaining an international reputation for its high-quality marijuana. In October 2025, Saint Vincent will host the annual CannaBliss festival for the second time. This is a four-day event that attracts customers from around the globe and dually acts as a chance for networking among the medicinal cannabis industry.

Not only does this boost Saint Vincent’s tourism industry, but it is also a chance for the country to share its culture with the world. The festival will feature reggae singers with international fame. However, it will also be a chance for local Vincentian singers to display their talent!

Medicinal Benefits

Due to cannabis’s unique medicinal uses, the drug is experiencing increasing demand worldwide, with the medicinal cannabis market expected to reach $58 billion in sales by 2028.

The United States Food and Drug Administration (USFDA) currently uses Epidiolex, which contains cannabidiol, to treat seizures. It also uses Marinol and Syndros, which contain Tetrahydrocannabinol (THC), for therapeutic purposes such as treating nausea associated with cancer chemotherapy and anorexia related to weight loss in AIDS patients. The USFDA continues to research additional medical applications of cannabinoids.

Meanwhile, the cannabis market is expanding globally. The U.K., Canada and several European countries have, for the first time, approved a plant-derived cannabinoid drug (Sativex) for medical use.

Supports Cultural Practices

Emerging in ’30s Jamaica, the religion Rastafari celebrates marijuana as a gift from God. Rastas believe in peace and living organically; they often adjust their language to avoid negative terms, oppose violence and oppressive systems such as capitalism and are typically vegetarian. Rastas use marijuana ritually to help enlighten their minds; before smoking the plant, they pray to Jah (God) or to Haile Selassie I.

Moreover, supporting Rastas means supporting local farmers. Since decriminalizing cannabis in Saint Vincent, farmers can now obtain a subsidized licence to grow marijuana and companies must buy 10% of their plants from traditional agriculturalists. Before this, it was difficult for Rastas to make a living.

Farmer Bobbis Matthews said to the Guardian, “It was hard! At least three times a year, U.S. helicopters would come and tear down the crop. In those days, it felt like you couldn’t even say the word marijuana because just to say marijuana, you could get arrested.” “We had a song called ‘Helicopter.’ It was about the panic and franticness whenever you hear the sound of the helicopter,” he continued.

Now, local farmers can live and celebrate their culture legally. The growing industry has created 2,500 more jobs for a country with low employment rates. Saint Vincent has also provided additional training in best cultivation practices to support the market and farmers further.

Final Comments

Overall, Saint Vincent and the Grenadines demonstrates how cannabis can be used ethically. The country is utilizing the plant for its medicinal benefits and its significance to the religious community. Marijuana’s rapidly growing market is also helping to reduce poverty in Saint Vincent and the Grenadines by increasing employment rates and expanding trading opportunities. This, in turn, is building a fast-growing industry that will play a pivotal role in the country’s future.

– Lysia Wright

Lysia is based in Derby, UK and focuses on Global Health for The Borgen Project.

Photo: Flickr

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How Georgia’s Wine and Tourism Are Helping Communities

Georgia’s Wine and TourismGeorgia, the birthplace of wine, has rightfully earned its title as “wine country.” The investment in wine-making has boosted the economy and helped many communities find their way out of rural poverty. Winemaking is deeply rooted in the country’s history and evidence shows that viticulture dates back 8,000 years in Georgia. Vineyards cover most of the country’s rolling hills, making the wine extremely popular worldwide.

The Georgian Grape Subsidy Program

A subsidy is financial assistance provided by the government to help keep prices stable and encourage economic participation among vulnerable producers. Specifically in Georgia, subsidy programs were made to stabilize farmers’ incomes, guarantee smooth harvests and ensure that even lower-quality grapes could be sold, especially those used for wine production. Subsidies have played an integral role in sustaining Georgia’s agricultural sector.

Between 2014 and 2024, nearly 45% of government agricultural spending went toward subsidy programs. These funds support the production of key crops such as wheat, hazelnuts, tangerines, apples and, most importantly, grapes. The Georgian grape subsidy program began in 2008 and, except for 2018 and 2019, has been implemented every year since.

The government has used both direct and indirect subsidies to support farmers. Direct subsidies provide cash payments to grape growers for each kilogram harvested. In contrast, indirect subsidies operate through state-owned companies that purchase grapes directly from farmers, especially when private buyers leave surplus crops on the market.

Although direct financial support declined sharply after 2017, the government continued its grape purchasing program to protect growers from market fluctuations and ensure no farmer was left behind.

Challenges in the Vineyards

Despite the progress, Georgia’s small-scale grape producers remain among the country’s most economically vulnerable people. Many still rely on outdated production methods, lack access to quality inputs and agricultural services and face limited competition opportunities in international markets. After the land reforms of the ’90s, following the collapse of the Soviet Union, farmland in Georgia became scarce.

This left most vineyards too small to support efficient production. This has resulted in high costs and limited access to capital and markets. Because of these constraints, some wineries have started to grow their own grapes to secure consistent, high-quality supplies, leaving smallholders struggling to find buyers. These farmers face the added risk of unpredictable weather and fluctuating market prices, making planning or investing in new technology difficult.

Tourism

Georgia’s wine and tourism industry is helping communities by creating jobs for local community members. Georgia’s wine culture is especially unique and the production of wine in Georgia competes with other luxury brands in the market. Research has shown that tourists appreciate the experience of learning about the process of winegrowing as much as they enjoy tasting the wine. Wine-makers in Georgia hope this trend will continue.

A Path Forward

The story of how Georgia’s wine and tourism are helping communities remains one of resilience and renewal. The government’s sustained investment in agriculture and the international demand for Georgian wine have opened new economic opportunities in rural areas. As vineyards expand and production methods improve, Georgia’s winemaking tradition continues to do more than fill glasses; it helps fill livelihoods, turning an ancient craft into a modern tool for fighting poverty.

– Arielle Telfort

Arielle is based in Purchase, NY, USA and focuses on Global Health for The Borgen Project.

Photo: Unsplash

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Renewable Energy in Azerbaijan

Renewable Energy in AzerbaijanAzerbaijan, home to more than 10 million people, is a landlocked country located between Russia and Iran in Southeast Asia. In the past decade, the Azerbaijan government has implemented significant initiatives to increase their renewable energy resources with plans to have up to 38% of its electricity come from renewable sources by 2030. Renewable energy has become one of the nation’s top priorities in recent years, as President Ilham Aliyev issued a 2019 decree to reform and modernize the national energy sector. According to Aliyev, renewable energy in Azerbaijan has the potential to stimulate economies both nationally and around the world.

The poverty rate in Azerbaijan has considerably declined in the past 20 years, dropping from 68.1% in 1995 to only 5.5% in 2023; however, with almost half the population living in rural areas, many residents continue to experience unreliable access to affordable energy. Some rural residents have access to electricity for only five to six hours a day, and poor insulation in outdated buildings further limits their ability to retain energy. Expanding renewable energy in Azerbaijan could close this gap by making power more accessible, while also improving public health and creating jobs.

Azerbaijan’s Renewable Energy Transition

According to the International Energy Agency (IEA), oil and natural gas control Azerbaijan’s energy supply, which together account for more than 90% of electricity generation. Renewable energy in Azerbaijan contributes about 6% of total electricity generation, but that share is set to rise as the government invests heavily in renewables such as solar, wind, hydropower and bioenergy.

The Ministry of Energy estimates Azerbaijan’s technical renewable potential at more than 135 gigawatts (GW) onshore and 157 GW offshore, with 27 GW considered economically feasible. This includes 3,000 MW of wind, 23,000 MW of solar, 380 MW of bioenergy and 520 MW from small rivers. Azerbaijan currently operates 65 hydroelectric plants, five wind farms, nine solar plants and several hybrid projects that produce around 1,829 MW, which is more than 19% of the country’s total power capacity.

These investments align with Azerbaijan’s commitment to host COP29, the 2024 United Nations Climate Change Conference, underscoring the country’s growing role in advancing world sustainability.

How Renewable Energy in Azerbaijan Can Reduce Poverty

  1. Lower Costs and Greater Access: Renewable energy systems such as solar and wind operate more efficiently and cost less than fossil-fuel plants. Expanding renewables could lower electricity costs for households and businesses, particularly in rural communities that currently rely on costly or unreliable sources. Microhydropower systems also deliver power to isolated regions, allowing residents to easily access lighting, refrigeration and internet. These are key factors in stimulating education and economic growth.
  2. Better Health and Living Conditions: Burning fossil fuels releases major air pollutants that contribute to chronic respiratory and cardiovascular diseases. More than 880,000 Azerbaijanis live within five kilometers of gas flaring sites, heightening their risk of developing these chronic and often lethal conditions. Cleaner energy reduces these health risks and lowers medical expenses for low-income families. The new Garadagh Solar Power Plant will save 110 million cubic meters of natural gas and cut 200,000 tons of carbon emissions annually. These projects will benefit not only the planet but also improve the quality of life for Azerbaijani residents.
  3. Job Creation and Economic Growth: The shift to renewable energy has generated substantial job growth across Azerbaijan. Building and maintaining solar farms, wind turbines and grid systems creates thousands of jobs. The Shafag (Jabrayil) Solar Power Project is projected to generate more than 400 new jobs by the end of 2027. Moreover, many of these opportunities are located outside urban centers, such as the Khizi-Absheron 240 MW Wind Farm, helping to reduce rural poverty.
  4. Energy Security and Climate Resilience: Dependence on oil and gas exposes economies to price fluctuations and resource depletion. Renewable energy provides stability and self-sufficiency. By saving natural gas used in power generation, Azerbaijan can increase exports, leading to increased revenue for poverty reduction and infrastructure development. It also strengthens the country’s resilience to changing weather patterns, which also disproportionately affects poor and rural communities.

Challenges and the Road Ahead

While Azerbaijan’s renewable energy growth is promising, challenges remain. The country’s energy infrastructure continues to depend primarily on fossil fuels, and scaling up renewables requires additional investment in transmission lines and modernized regulations. The Ministry of Energy notes that although the technical potential exceeds 135 GW, only a fraction is economically feasible today due to costs, outdated technology and limited participation from the energy private-sector. 

Still, the government’s Law on the Use of Renewable Energy Sources in Electricity Production and the development of public-private partnerships represent crucial steps toward a more sustainable and inclusive future. If Azerbaijan continues its commitment to renewable energy expansion, it will foster not only a greener economy but also a more equitable one.

– Emily Salter

Emily is based in Birmingham, AL, USA and focuses on Technology and Global Health for The Borgen Project.

Photo: Pexels