Archive for category: Economy

Information and stories about economy.

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Does the Belt and Road Initiative Reduce Poverty?

The Belt and Road InitiativeAcross the hilly Burera District of northern Rwanda, travel between towns and distant regions is a challenge. For many, including businessman Seth Havugimana, reaching a larger city such as Musanze takes four hours. However, one day, men in bright neon construction vests and the smell of newly laid asphalt began to permeate the countryside.

A new road is slowly taking shape, funded by the China Road and Bridge Corporation and Rwanda’s NPD Ltd. This new road will connect once-distant towns and provide economic opportunities to countless individuals. Havugimana recounts how, after the construction of the Base-Butaro-Kidaho road, “business can move and people can go from here to another place easily,” transforming lives in the district.

The Belt and Road Initiative

The Belt and Road Initiative (BRI), a Chinese program aimed at international cooperation and development, funds projects like these globally. Chinese President Xi Jinping announced the BRI in October 2013 and as of December 2023, the program works with around 146-151 countries. Although lacking a clear governance framework, institutions such as the Asian Infrastructure and Investment Bank, the Commercial Bank of China and the Silk Road Fund have contributed to foreign projects through grants and loans.

In addition to the newly constructed road in Rwanda, other recent BRI plans include road and bridge construction in Lesotho’s Qacha’s Nek District and a 2.2-kilometer coastal road in Tanzania near Zanzibar.

How These Projects Can Reduce Poverty

The creation of infrastructure, such as roads, bridges and energy facilities, plays an undeniably important role in fighting poverty worldwide. According to a 2025 report by the World Bank Group, prevailing evidence points to infrastructural development being a “main driver of poverty reduction” and leading directly to an “impact of growth.” The creation of transportation infrastructure, for example, has decreased poverty in Ethiopia and increased earning opportunities for isolated households in Cameroon.

Back to the construction of the Base-Butaro-Kidaho road in Rwanda, the new ease of transportation allows individuals to more easily access schools, hospitals and markets than ever before. In turn, more people in the Burera District have better access to health care and higher levels of education, displaying how the BRI reduces poverty through its projects. Although the answer is not always straightforward, infrastructure spending usually leads to a “positive multiplier” on a country’s GDP.

However, in some cases, there is no benefit due to factors such as delays or a lack of maintenance.

Does the Belt and Road Initiative Reduce Poverty?

While research on the overall effectiveness of the BRI in combating poverty is limited, many sources point to a positive impact. According to the World Bank Group, the BRI covers about one-third of the world’s impoverished population. To this end, there is already an unbelievable amount of scope that the BRI has identified and invested billions of dollars in.

Critics of the program argue that, contrary to the rapid capital accumulation typically associated with new infrastructure, China’s contributions do not lead to improved industries or increased exports. However, a World Bank Group report estimates that 76 million people could escape poverty by 2030 due to the BRI’s efforts. While it may be true that China has seen a rise in exports and some participating countries have experienced losses in their local economies, the BRI’s overall impact on poverty reduction appears positive.

Final Thoughts

Research indicates that expanded international trade and capital growth significantly promote economic growth. Through its many projects and strengthened economic ties with BRI countries, China is contributing to economic growth and, in turn, poverty reduction for innumerable individuals. Like the ancient Silk Road, which facilitated the flow of goods across Afro-Eurasia, the BRI is opening new markets for global trade today.

Although the program is relatively new, its impacts are already being felt and its continued implementation is expected to significantly transform poverty outcomes in the coming years.

– Benjamin Anderson

Benjamin is based in Madrid, Spain and focuses on Business and Politics for The Borgen Project.

Photo: Unsplash

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Why Elderly Poverty in Mozambique Is Rising

Elderly Poverty in MozambiqueWidespread poverty continues to erode living conditions across Mozambique, leaving older adults among the country’s most vulnerable populations as economic crises and weak social protection systems drive financial insecurity. Here is some information about elderly poverty in Mozambique and information about what is occurring to address it.

Economic Crisis Deepens Elderly Hardship

Economic shocks deepen elderly poverty in Mozambique, as rising food and fuel prices undermine economic stability, strain household budgets and push vulnerable older adults further into financial insecurity. COVID-19, natural disasters, inflation and social instability have compounded elderly poverty in Mozambique. Many older Mozambicans rely on small-scale agriculture, livestock and informal income sources for survival, yet still fall below the poverty line. The loss of job opportunities and the increase in essential goods and social services reduce older adults’ purchasing power, forcing them to cut back on nutritious foods, health care and other basic needs.

In 2015, nearly half of Mozambique’s population– approximately 46.1%–lived below the poverty line. By 2022, this figure had surged to 65%, and recent estimates suggest that by 2025 nearly 75% of Mozambicans live in poverty, with approximately 1.35 million adults aged 60 and older facing severe economic hardship, highlighting the growing scale of elderly poverty in Mozambique.

Weak Social Protection Aggravates Elderly Poverty

Limited economic capacity, along with weaknesses and inefficiencies in Mozambique’s domestic social protection and administrative systems, drives vulnerability among the elderly population.

Although the Basic Social Subsidy Programme for older adults (PSSB-Elderly) in Mozambique improves food security following economic shock, structural and systemic weaknesses in program implementation cause these gains to diminish over time. Uneven distribution of PSSB payments has led to significant regional disparities among older adults across Mozambique. In Gaza, approximately 73% of poor older adults benefit from the program, while coverage remains far lower in poorer provinces such as Nampula and Zambezia, where the program reaches only 39% of elderly individuals.

Despite existing health inequities, inconsistencies in PSSB payments also reduce the program’s effectiveness, leaving many older Mozambicans vulnerable to food insecurity and health problems.

Irregular PSSB payments and program design that incentivizes households to declare additional members can increase instability and uncertainty, potentially worsening living conditions for beneficiaries.

Addressing Poverty and the Health Crisis in Mozambique

In 2021, GiveDirectly began delivering unconditional monthly cash transfers to rural households in Sofala Province to reduce extreme poverty and strengthen household resilience. The program provides direct cash assistance to individuals and families, allowing recipients to decide how best to meet their own needs.

GiveDirectly also aims to improve food security, expand financial inclusion and support long-term recovery. Since 2021, GiveDirectly has expanded its program across multiple districts, including Mogovolas, Nhamatanda and Memba, and launched initiatives focused on climate-smart agriculture and conflict-resilient livelihood in 2024 and 2025.

By 2025, GiveDirectly had implemented five cash transfer programs, delivering more than $20 million in cash transfers and reaching more than 32,000 people across Mozambique. Individuals and households used the cash to secure food, access health care and economic investment.

At the same time, the World Institute for Development Economic Research of the United Nations University recommends strengthening administrative systems, ensuring more equitable PSSB payment coverage among older adults and improving payment consistency to support elderly well-being in Mozambique.

Looking Ahead

Reducing elderly poverty in Mozambique requires sustained investment and financial support to address long-standing economic hardship due to recurrent natural disasters and domestic conflict, along with strengthening the country’s social protection systems to ensure reliable financial security for older adults.

– Yuhan Rong

Yuhan is based in San Diego, CA, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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How Tourism Is Reducing Poverty in Albania

Poverty in albaniaTourism in Albania has grown rapidly in recent years and is becoming a powerful tool for reducing poverty and creating economic opportunity. Once seen as a hidden destination, the country is now attracting millions of visitors each year, bringing new income to communities that previously had limited employment options. Through investment in infrastructure, support for small businesses and community-based tourism projects, the industry is helping households earn a stable income and build more secure futures.

Rapid Growth in Visitor Numbers

Albania has shifted from being a hidden destination to becoming one of the Mediterranean’s fastest-growing tourism markets. In 2019, the country welcomed 6.4 million foreign visitors, which was considered a record year at the time. Since then, tourism in Albania has continued to grow rapidly.

By 2024, Albania attracted nearly 12 million international visitors, an 82% increase from 2019. Tourism in Albania also showed strong resilience after the COVID-19 pandemic. By 2022, tourist arrivals were already 5% higher than pre-pandemic levels, allowing the sector to recover faster than many competing destinations in the region.

This quick recovery helped protect jobs and restore income in tourism-dependent communities. The country has also expanded its tourism markets beyond a single source. Albania has established direct air connections and attracted visitors from the U.K., Germany, Italy, France, the U.S. and the Middle East. To meet growing demand, the number of hotels, rooms and beds increased more than tenfold between 2000 and 2019, while international seat capacity continued to rise after 2019.

While national statistics show a massive surge in arrivals, local hosts see this growth through their seasonal calendars. In an interview with The Borgen Project, Akeron, who runs a local Airbnb, explained that the season typically “starts in April and ends in the end of October.” During the peak months of July and August, his accommodations are usually “fully booked,” while June and September maintain high occupancy rates of “70-80%”.

Tourism Revenue and Economic Impact

Tourism has become a major financial pillar of Albania’s economy. In 2023, the sector’s contribution to GDP reached 565 billion Lek ($6.78) billion, a 37% increase from the previous peak in 2019. Estimates show that travel and tourism now contribute roughly one in every four Lek to the national economy.

Tourism has also strengthened Albania’s export earnings. Over the past two decades, tourism generated 38% of the country’s total exports. International visitor spending reached 464 billion Lek ($5.57 billion) in 2023, more than 45% higher than in 2019, bringing money directly into local communities.

This economic shift is felt directly at the household level. For Akeron’s family, the ability to host international visitors has provided a new level of financial security. “For my family, it has made a difference in the amount of money we can save and has helped us think about things we want to do for the future,” Akeron stated.

Job Creation and Social Inclusion

Tourism is one of Albania’s largest sources of employment. In 2023, the sector supported almost 269,000 jobs, representing around one in five jobs nationwide. These jobs range from hospitality and transport to food services and cultural tourism, offering work in areas where few alternatives exist.

Tourism growth has also supported inclusive employment. In southern Albania, more than half of the jobs created through heritage tourism projects are held by women and young people. Some initiatives have also created opportunities for people with disabilities, including maintenance roles at Gjirokastra Castle, helping improve household income, social inclusion and reduce poverty in Albania.

Additionally, tourism has encouraged return migration. Former residents are returning to historic cities such as Gjirokastra and Saranda to invest savings in guesthouses and hospitality businesses. In project-supported areas, the number of tourism-related businesses has more than doubled since 2019, showing how public investment can stimulate local entrepreneurship.

These roles often rely on a collaborative family structure to be successful. Akeron and his parents all maintain other full-time jobs, but they “work together” to manage the guesthouse. He explained the division of labor: “me with the online part and my mom with the cleaning and welcoming guests to make it work.” He also noted that for families where members lack regular employment, this business provides “a very good income.”

Tourism in Rural and Coastal Communities

Tourism has turned family homes into sources of income in many rural and historic areas. In cities such as Gjirokastra, Berat and Përmet, public investment in restoring castle sites and cobblestone streets has encouraged families to convert historic homes into bed-and-breakfasts, restaurants and guesthouses. In these areas, the number of tourism-associated businesses has more than doubled since 2019.

Rural tourism also supports artisanal and cultural income. Around 78% of people employed in the artisan sector are women and nearly half of handicraft businesses are women-owned. Small family-run homestays rely heavily on women’s labor and provide independent income, strengthening household stability.

Infrastructure improvements have helped extend the tourism season beyond the summer months. Projects such as the Saranda promenade have enabled year-round economic activity, stabilizing income for local workers and businesses.

Local hosts often act as a bridge to the wider community by encouraging guests to spend money at nearby businesses. Akeron noted that he frequently recommends “restaurants in the city and by the beach” to his guests. He specifically highlights a restaurant in his village “which serves only Albanian food,” illustrating how tourism income supports traditional culinary businesses.

Community-Based Tourism and Infrastructure Investment

Community-based tourism initiatives have helped ensure that tourism benefits stay within local communities. The Integrated Urban and Tourism Development Project, supported by the World Bank and the Albanian government, focuses on cities including Berat, Gjirokastra, Përmet and Saranda. The project aims to regenerate local economies by restoring heritage sites and upgrading public infrastructure.

This model encourages residents to become active tourism entrepreneurs by converting private properties into guesthouses, cafés and tourism services. Additional EU-funded programs have adopted bottom-up approaches that enable communities to shape tourism growth in line with local needs. Investment in transport and accessibility has supported this growth.

Albania has expanded air connections through low-cost carriers and the construction of new airports. Road networks, walking routes and heritage trails have also improved access to inland regions.

Remaining Challenges

Despite strong progress, challenges remain. Informal employment continues to leave many tourism workers without contracts or social protection, increasing vulnerability during economic shocks. Regional inequality is also visible, as northern areas such as Kukës continue to face high poverty and limited tourism development.

Beyond employment concerns, a significant hurdle is the “infrastructure missing from the government.” Akeron identified the “lack of water” as a primary issue, explaining that families often have only “1-2 hours a day” to fill storage tanks for basic needs like showering and washing dishes. He recalled a specific instance where the water supply failed while a guest “had just put on the shower gel.” While a neighbor was able to provide water to help, Akeron noted that these daily shortages create constant uncertainty for local hosts.

Tourism in Albania is proving that well-planned growth can do more than attract visitors; it can reduce poverty, create jobs and strengthen communities. By supporting family-run businesses, expanding infrastructure and promoting community-based tourism, Albania has allowed its residents to benefit directly from rising visitor numbers. While challenges remain, continued investment and inclusive planning offer a hopeful path forward, showing how tourism can be a powerful force for shared prosperity and poverty reduction in Albania.

– Aila Alsakka

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

Photo: Unsplash

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How Clean Energy in Kenya Is Powering Poverty Reduction

Clean Energy in KenyaWhen the sun sets over rural Kenya, darkness no longer marks the end of the day for many families. Clean energy increasingly influences daily life in communities that formerly relied on expensive fuel and smoky kerosene lamps. Children study after dusk, homes are brightened by solar lights and small businesses remain open later.

Renewable energy benefits the nation’s well-being and economy more than simply endorsing positive environmental pursuits. It actively supports poverty reduction in Kenya by expanding opportunities at the household level.

Expanding Clean Energy Access in Kenya

Millions of Kenyan families suffered from low productivity and bad health for decades due to energy poverty. Families spent a significant amount of their earnings on charcoal, firewood and kerosene. These fuels depleted cash and harmed people’s health.

Respiratory ailments were caused by indoor air pollution and opportunities for education and employment were limited by sporadic lighting. However, recent findings show how the nation has rewritten its past. Kenya has made great strides in expanding access to clean cooking and power through strong regulations and targeted infrastructure investments, according to a recent IEA assessment.

Kenya is positioned as a regional leader in economic and energy growth, thanks to its ambitious implementation plans. Its push for electrification using clean energy technology has put the country on track to achieve universal access to electricity by 2030. “Kenya is showing how the strategic deployment of clean energy technologies and electrification in end-use sectors can significantly improve the lives of millions of the most vulnerable people in the world,” stated IEA Deputy Executive Director Mary Burce Warlick.

A key contributing factor to this remarkable turnaround is the transition to clean energy. The nation is currently among the world leaders in clean power, producing more than 90% of its electricity from renewable sources. Large-scale initiatives like Lake Turkana Wind Power improved the country’s national grid and showed Kenya’s dedication to sustainable development.

Solar Power’s Impact in Kenya

This shift links clean power directly to long-term poverty reduction in Kenya by supporting inclusive economic development. Rural residents who would have had to wait years for grid connections can now get electricity immediately thanks to off-grid solar installations. Businesses like M-KOPA use pay-as-you-go methods to enable families to purchase solar systems with modest daily payments made with mobile money.

Millions of people now have dependable energy for the first time thanks to M-KOPA’s solar power connections to more than two million homes. Solar electricity facilitates exciting opportunities for people in Kenya. Parents may operate small home-run businesses, charge neighbors’ phones and extend store hours after dark with dependable electricity.

Reduced energy expenses provide free money for food, medical care and school tuition. Clean energy enhances pathways to poverty reduction in Kenya, enabling households to transition from a bare minimum existence to a more sustainable future, with potential for future investments. Additionally, clean energy enhances health outcomes, particularly for women and children.

Solar illumination reduces indoor air pollution and replaces kerosene lamps. Families are less likely to have fire hazards and respiratory issues. Furthermore, solar energy helps hospitals by supplying consistent illumination and refrigeration for vaccinations in isolated locations.

Final Remarks

The United Nations (U.N.) lists its Sustainable Development Goals, a notable aim being to ensure access to clean, affordable energy. Kenya’s journey toward sustainable energy is a story of possibility. The nation demonstrates that climate action and economic advancement can coexist by increasing access to reasonably priced renewable energy.

Clean energy today provides security, dignity and a practical way out of poverty for many Kenyan households.

– Prubleen Bhogal

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

Photo: Flickr

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How Surf Tourism is Helping Fight Poverty in Bali

Poverty in baliBali, an island and province of Indonesia, is best known for its turquoise waves and world-class surf breaks, but behind the island’s booming tourism industry lies a more complex reality. While mass tourism has strained local livelihoods and the environment, surf tourism in Bali is quietly creating economic opportunities that help local communities escape poverty.

Tourism and Inequality in Bali

Over the past two decades, tourism has driven extraordinary economic growth in Bali. Before the pandemic, the island welcomed more than six million international visitors a year, generating jobs, foreign investment and global visibility. But this growth has not been evenly shared.

As tourism expands, wealth tends to concentrate in already-popular areas, widening the gap between those who benefit from the industry and those who are left behind. Developers have increasingly converted agricultural land, including Bali’s iconic rice terraces, into hotels, beach clubs and shops aimed at foreign tourists. For many rural and working-class communities, this shift has meant higher living costs, fewer traditional livelihoods and mounting pressure to adapt or relocate.

Surf Tourism in Bali

What surf tourism in Bali occasionally reveals is not a solution to poverty, but a different way tourism value can circulate at the margins. At Kima Surf, the surf camp embeds charitable work into its everyday operations. Kima Surf instructors bring children from the Bali Orphan Day Center into the water for surf sessions, while guests and staff take part in beach clean-ups that address the environmental pressures tourism generates.

Beyond the beach, Kima Surf supports initiatives such as the NF Kinder Foundation. The foundation funds health care, research and aftercare for families facing the high and ongoing costs of Neurofibromatosis, helping them avoid financial strain that could push them deeper into poverty. Similarly, Bali Green Surf School supports educational access by providing food, clothing, toys and essential school supplies to local orphanages, helping reduce material barriers to learning for children from low-income backgrounds.

Fundraising for SurfAid’s Make a Wave Challenge and awareness campaigns promoting disability inclusion in Bali also support groups that are often excluded from tourism jobs and social services. These interventions remain limited in scale and cannot offset the structural inequalities that tourism development produces; however, they illustrate how surf tourism can contribute, albeit incrementally and unevenly, to poverty alleviation. It eases access to care, skills and resources where state support is often insufficient.

What This Means for Poverty Reduction in Bali

Examples like Kima Surf and Bali Green Surf School show how surf tourism in Bali can intersect with poverty in ways that are often overlooked. Rather than transforming the economy or reversing gentrification, surf tourism can create smaller, more immediate forms of support. These include reducing financial vulnerability by improving access to health care and educational resources that might otherwise push families further into poverty.

These impacts are limited and uneven, but they matter in a place where tourism dominates everyday life. Surf tourism in Bali does not solve poverty. However, when its benefits reach local people, it can make everyday life more affordable for some families.

– Iona Gethin

Iona is based in Exeter, UK and focuses on Good News for The Borgen Project.

Photo: Flickr

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Women’s Cooperatives in Guatemala

Women’s Cooperatives in GuatemalaIn the highlands of Guatemala, women’s cooperatives are writing a tale of defiance against poverty. Historically marginalized groups of women have united through cooperatives to become the lifeblood of their local economies. The benefits are cascading in metamorphic ripples, transforming entire communities in their wake.

Economic Independence

The most immediate impact is a dramatic rise in household income. Cooperatives like the Cojolya Association guarantee members more than twice the local market rate, shattering legacies of exploitation and establishing women as primary economic actors. This empowerment was a product of necessity, born from the ravages of a civil war that left countless women widowed.

Survivors, now solely responsible for the welfare of their families and the rehabilitation of their communities, founded cooperatives like Trama Textiles, which has grown into a network of more than 400 weavers. Cooperatives like Ixoq Ajkeem demonstrate the power of a collectivist approach with their strategy of pooling resources, leveraging bulk orders and constructing common storefronts. In this way, women’s cooperatives in Guatemala integrate vulnerable and disparate artisans.

They unite them under a single, resilient organizational model. This structure protects families from economic volatility. It also shields individual producers from the unpredictability of the market.

Investing in Health and Nutrition

This economic power creates a direct second ripple: improved family health and nutrition. As primary earners, women consistently reinvest in their families’ well-being, marking a critical shift in a country where a severe poverty crisis drives chronic malnutrition. Through cooperatives, this care becomes institutionalized.

UPAVIM, for instance, has channeled its collective resources into a medical and dental clinic while also initiating targeted campaigns, like a soymilk program, to combat child malnutrition. The women of rural Guatemala continue to teach a lesson in ingenuity by using the cooperative model to transform earnings directly into community health care, ensuring the windfalls of their work are felt throughout their entire locality.

Keeping Children in School

The third ripple and perhaps the most foundationally transformative, manifests in education. Protection from poverty enables children to return to the classroom instead of toiling away in the workforce of manual labor. This commitment is structurally embedded in cooperatives like UPAVIM, which operates its own school.

It also provides members’ children with scholarships for school supplies and meals. These efforts significantly reduce costs and make education accessible to many more families. The result is both tangible and visible. Children in school uniforms are now a common sight.

This change reflects their mothers’ success in securing a right to education denied to earlier generations by poverty. It also signals systemic transformations capable of breaking long-standing cycles of deprivation.

Building Skills and Confidence

The impact of women’s cooperatives in Guatemala transcends material gain, mounting to a fourth ripple of personal empowerment. Beyond the loom, women receive vital training in financial literacy, business management and leadership, highlighting cooperatives as institutions for holistic human development and collective self-sufficiency. This newfound expertise fuels a powerful shift in communal identity. As one weaver from the Aj To’ooneel cooperative asserted, “Women today are entrepreneurs.”

This transformed identity is reproduced at home, reshaping the perceptions of forthcoming generations. “The children of the artisans are seeing that women also have an important role or they occupy the same position as men in the family,” observed Lidia Garcia of Mercado Global. This cycle of empowerment, once begun, becomes self-perpetuating.

Strengthening the Entire Community

These individual ripples converge into a fifth: community fortification, transforming cooperatives into vital civic institutions. Aside from its school, UPAVIM established a health clinic and bakery, establishing a grassroots community support system. This role as a community pillar becomes most evident and most critical during crises.

Throughout the COVID-19 pandemic, cooperatives like Multicolores, Kakaw Designs and Mercado Global leveraged their networks to facilitate emergency food baskets, hygiene supplies and public health information when state aid was insufficient. Ultimately, these women’s textile cooperatives in Guatemala amount to something far greater than the sum of their parts; they weave a stronger, more resilient social fabric for the future.

Final Remarks

The story of Guatemala’s cooperatives is a testament to how women’s empowerment creates a cascade of change. From individual economic independence to healthier families, educated children and resilient communities, the ripple effect is lifting rural communities in Guatemala out of poverty. These cooperatives demonstrate that the most sustainable path to development is not through top-down aid alone, but by empowering those at the heart of communities to become the architects of their own futures.

– Georgio Moussa

Georgio is based in London, UK and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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Rwanda’s Zamukana Ubuziranenge: Boosting Small Businesses

Rwanda’s Zamukana UbuziranengeIn October 2025, Rwanda hosted the International Organization for Standardization (ISO) Annual Meeting in Kigali, spotlighting the nation’s emergence as a continental leader in “quality infrastructure.” Central to this economic success is Rwanda’s Zamukana Ubuziranenge program, a strategic initiative translated as “Grow With Standards.” By providing technical assistance to small businesses, the program bridges the gap between local production and international safety requirements, fostering a new era of inclusive industrial growth.

The Standards Maturity Model

The implementation of Rwanda’s Zamukana Ubuziranenge utilizes what experts refer to as a “maturity model.” Rather than imposing unreachable global mandates on small entrepreneurs, the Rwanda Standards Board (RSB) provides a tiered trajectory for micro, small and medium enterprises (MSMEs) to progress incrementally. This approach first adapts international standards to suit local realities.

Then it aligns them with global markets as the institutions mature. The program begins with a gap assessment to benchmark current business practices against applicable standards. Following this, the RSB offers customized training and “handholding” support to help staff implement systems that promote consistent quality.

This hands-on guidance prepares businesses for a final assessment and the eventual initiation of the formal certification process. Through this supportive framework, the government ensures that small producers can match their technical ambition with their actual capacity.

Removing Financial Barriers To Growth

A significant political development occurred in January 2025, when the government announced that all quality services under Rwanda’s Zamukana Ubuziranenge would be provided free of charge to MSMEs. These services include technical assistance, testing, calibration and certification. By removing these costs, the state eliminated a significant financial barrier for low-income entrepreneurs, particularly those without access to funding from external development partners or nongovernmental organizations.

Quantifiable Impact on Local Industries

The measurable success of Rwanda’s Zamukana Ubuziranenge is evident in the diverse range of businesses it has supported. By June 2025, the program reached approximately 988 MSMEs and cooperatives. This group comprises 368 enterprises operating in food value chains and 226 businesses in the chemical industry, producing essential items such as soaps and detergents.

The program also supported 94 businesses in the textile and leather sectors and trained 33 cooperatives in transparent grant management practices. Sector-specific results highlight the practical outcomes of these certifications. For instance, the RSB has successfully certified 14 honey products from 12 different companies against international food safety management systems.

These certifications allow Rwandan honey to access wider regional and global markets, increasing the income of rural beekeepers. Similarly, the certification of locally made machinery and mechanical tools reduces field failure rates. It provides a powerful marketing tool for exports.

Fostering an Inclusive Quality Culture

The long-term impact of Rwanda’s Zamukana Ubuziranenge extends beyond technical compliance to social empowerment. The program specifically focuses on MSMEs established by women, young people and individuals with disabilities. By equipping these marginalized groups with the skills to produce high-quality goods, the initiative fosters a culture of self-sufficiency.

Residents in areas like Cyanika have noted that the availability of affordable, quality local products reduces the need for community members to seek supplies across borders.

A Regional Leadership Strategy

Rwanda’s hosting of the ISO Annual Meeting 2025, themed “United for Impact,” reflects its position as a regional hub for innovation and trade. The country has developed and adopted more than 2,250 international standards to date, which support socioeconomic activities and open doors for Rwandan products in global markets. The global community recognizes this commitment to quality infrastructure as a “hidden foundation of prosperity” that helps developing nations escape the cycle of low-quality production.

The future of Rwanda’s Zamukana Ubuziranenge appears promising as it continues to integrate local businesses into the formal economy. Indeed, by prioritizing standards as a tool of industrial policy, Rwanda is demonstrating how technical excellence can drive sustainable development and poverty reduction. As more MSMEs achieve certification, the nation moves closer to its goal of achieving self-reliance and global competitiveness, proving that standards serve as a springboard for inclusive growth.

– Elena Cárdenas

Elena Cárdenas is based in Monterrey, México and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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Poverty Amid Currency Discrepancies and Inflation in Egypt

Inflation in Egypt

Egypt is starting to recover from what was, in 2023, a widening gap between its official currency exchange rates and black-market rates. With a record high inflation rate of 38% documented in September 2023, Egypt’s economy remains caught between the two exchange rates. To facilitate an understanding of the timeline, these figures reflect the peak of the crisis in 2023, followed by developments in 2024 and 2025 as reforms continued to unfold. Although the peak of inflation in Egypt has passed, recorded as 13.6% in March 2025, food prices continue to surge and remain an area of difficulty for the population. Meanwhile, the Central Agency for Public Mobilization and Statistics (CAPMAS) continues to withhold poverty data, feeding fears that although there is an apparent phase of stabilization, worsening hardship and poverty may be masked.

Currency Dynamics and Discrepancies

Egypt has long held the problem of what can be known as a dual-rate system. While the Central Bank of Egypt sets an official currency rate against the U.S. dollar, the black-market rate continues to fluctuate based on supply and demand. As Egypt is heavily dependent on imports, many businesses and individuals need access to dollars to purchase goods and services. However, when the dollar supply becomes insufficient through official channels, many have to turn to the black market, where the exchange rate is significantly higher.

This reveals a widening gap between those who have access to foreign currency and those forced to rely on depreciating and unstable Egyptian pounds. Although this gap has narrowed in 2025, businesses still struggle to access dollars, driving up both import and consumer prices. These developments reflect gradual adjustments since 2023 instead of focusing solely on a single moment of change.

Inflation in Egypt and Purchasing Power

Although a recent decline in inflation in Egypt has been observed, pressure remains. In January, inflation in Egypt increased by 1.6% after having been stable in December. Despite this, the cost of health care services continues to rise by 4.6% monthly, with sustenance costs increasing by 2.1%. This continues to drive poverty and decrease the purchasing power of individuals, as the prices of goods erode real wages.

Egypt’s reliance on Russia for wheat, and the impacts of the war in Ukraine, have doubled bread costs. The government has tried to reduce these increases through subsidies and price restrictions, and many protests have occurred over the years regarding the price of bread. Even with slower inflation and subsidies, purchasing power remains weakened, with many still below the poverty line, although this is beginning to decrease.

There are also concerns regarding how CAPMAS defines poverty. The latest report classifies extreme poverty as 550 pounds per month per person, and poverty as 857 pounds per month. These definitions are not in line with global poverty standards. Therefore, what appears to be a decrease in poverty may partly reflect shifts in definitions.

Disproportionate Impacts on Business and Living Standards

Various groups of people are being affected in different ways by the economic crisis. One example is young people giving up on education and resorting to any available work to sustain themselves and their families. This includes redefining what a decent life means, as many are no longer able to uphold previous standards. This has also led to a decrease in confidence regarding the future, with concerns about stability. Many Egyptians have moved back in with family, delayed marriage or given up on private further education.

Businesses are also struggling, as many rely on higher unofficial exchange rates to operate. This leaves them with higher running costs and makes it difficult to stay afloat. With fluctuating inflation, instability and record import prices, many businesses operate at a loss or at reduced capacity. As individuals lose purchasing power, they are less able to afford goods and services that once fit within their budgets.

Policy Response and Recommendations

In recent years, Egypt has been heavily reliant on loans from the International Monetary Fund (IMF) and its Gulf allies. In 2024, the IMF approved a $3 billion loan for Egypt with the condition of “a permanent shift to a flexible exchange rate regime.” With effective implementation, Egypt may be able to improve economic stability and build resilience. This would require measures that boost investor confidence, increase transparency and reduce incentives for black-market activity. Investor confidence could be strengthened through clearer public communication of monetary policy, more frequent publication of economic data and improvements in financial governance that make procedures easier for businesses and households to navigate.

To do this, Egypt needs to strengthen its foreign currency reserves by increasing and diversifying foreign investment and exports. Foreign currency reserves could also receive support through the encouragement of investment in infrastructure that improves transport and shipping efficiency, which would lower import costs and encourage export competitiveness. A focus on greater flexibility of the official exchange rate would go a long way toward this stable future, in which market forces play a more influential role, keeping in mind that adjustments need to be gradual to inhibit shocks and destabilization. Gradual adjustments paired with targeted fiscal measures would support small and medium-sized businesses during periods of volatility, which would also support employment and production.

Looking Ahead

In clarifying the progression from 2023 through 2025 and devising practical steps for reform we can see how stabilization may eventually translate into improvements, namely the alleviation of poverty, felt across society. While current data indicate a decline in poverty and unemployment, many Egyptians have not yet felt improvements in daily life. The country could benefit from intentional efforts toward a more stable and transparent economic landscape for a future where the positive impacts reach every household.

– Maryam Qutbuddin

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

Photo: Unsplash

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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