Archive for category: Economy

Information and stories about economy.

Namibian First Lady Launches ‘One Economy’ Foundation

Namibia_Economy
The First Lady of Namibia, Monica Geingos, established the One Economy Foundation in May of this year. The organization’s slogan, “one Namibia, one Economy,” describes its plans to bridge the gap between formal and informal entrepreneurship in the African nation.

Namibia’s economy has been improving recently, with Bloomberg calling it the top emerging economy in Africa in 2012. However, informal entrepreneurship (unregulated, untaxed commerce operating without contracts or laws) continues to inhibit the country’s growth potential.

According to the Namibian Statistics Agency, the country’s unemployment rate stood at 27.4 percent in 2012. Many of the unemployed opt to work informally, due to significant barriers to entry in Namibia’s formal economy. However, informal work offers little in terms of long-term growth at the individual and national level. This is the problem the One Economy foundation wishes to address.

The One Economy Foundation will focus on entrepreneurship, early childhood development and health. The most crucial components are professional economic coaching and collateral-free lending. These strategies will help young Namibians—particularly those without preexisting connections to the nation’s high-powered financial sector—get a foot in the door.

According to Geingos, “One Economy is about providing fair opportunity. It’s about providing people with talent with opportunity.” She went on to explain that the need for the One Economy Foundation exists at both ends of Namibian commerce, as many enterprising Namibian bankers need the means to tap into the population of informal workers.

Prior to her involvement in the state, Geingos was one of the key figures in Namibia’s growing economy, possessing major holdings in Namibian mining, banking and media corporations. Her most recent endeavors, as a member of the Economic Advisory Council and First Lady, have been part of a larger effort in Namibia’s war on poverty.

The First Lady’s husband, President Hage Giengob, has also made poverty his focus in recent years. Despite a report in the Journal of Economic Structures stating that Namibia has “one of the most unequal income distributions on the African continent,” the President and First Lady remain hopeful that the nation’s wealth can be redistributed to address the nation’s poor.

Late last year, the president declared an “all-out war on poverty,” after receiving an impressive 87 percent of votes in the Namibian general election.

One Economy has already raised over N$4.5 million for implementation later this year.

– John English

Photo: Flickr

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Brexit Implications: How Will Africa Fare?

Brexit_Implications
People across all nations are asking about the impact of Brexit on the world, but only a few are asking the very important question of, “What will be Brexit’s impact on Africa?” As powerful countries such as the U.S. and Germany wait anxiously for the final vote count, anticipating possible financial fallout, the third world has much larger concerns, especially Africa.

Brexit Implications on Africa: Humanitarian, Political and Economic

Whether or not there will be a recession in Britain following the country’s exit from the EU is unclear, but what is certain is that if an economic crisis does occur, Africa will be hit hard.

Great Britain has long been a strong trading ally for Africa, and according to The Chicago Tribune, the European Union has preferential trade agreements with every African country except for Libya and South Sudan.

Due to the Brexit, British officials will now have to rewrite many of their trade agreements with African nations, which will take extensive time and manpower. However, this could prove to be fruitful for Africa, as strict regulations such as the Common Agricultural Policy — set in place by the EU will no longer apply to trade legislation.

According to the European Commission, the Common Agricultural Policy is an EU initiative aimed at invigorating “agricultural productivity, so that consumers have a stable supply of healthy food”. Part of this policy grants subsidies to European farmers to promote sustainable agriculture and the growth of healthy food.

BBC reports that African farmers feel as though the subsidies attached to the Common Agricultural Policy “undermine the concept of a level playing field”. The U.K. agrees with their African allies and adamantly fought for policy reformation before their exit. Brexit’s impact on Africa will not only be economic, for it will also influence the political and humanitarian realm.

The U.K. and Aid to Africa

Prior to the U.K.’s decision to leave the European Union, it had incredible authority over the EU’s political and humanitarian initiatives in Africa.

The European Development Fund, according to the Chicago Tribune, is “the European Union’s main vehicle for providing development aid to Africa”. Britain was a leading voice in dictating the mission of the fund, as the third biggest contributor at 14 percent.

Even more impressive was the U.K.’s power over the African Peace Facility and its backing of the African Union Mission in Somalia. Britain made sure that the EU paid for 90 percent of the program, a 22,000-strong multinational force that protects the Somali Federal Government from the extremist militant group al-Shabab.

Before the Brexit, Britain was already beginning to lose their battle over policy in Somalia as the rest of the EU voted to pull some funding, hinting at a divided opinion about African aid.

The future of European policy in Africa is ambiguous, as one of the continent’s most passionate advocates is no longer a member of the EU. While this may seem like troubling news for Africa, the Brexit could turn out to be a blessing for the entire region.

The U.K. will no longer be held back by the EU’s restrictive guidelines as it applies to foreign policy and unless recession strikes Britain’s economy, it is likely that they will stay true to their promise of providing 0.7 percent of their gross national income to African aid.

– Liam Travers

Photo: Public Domain Images

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Five Ways the Marshall Islands Government is Staying Afloat

Marshall Islands

The Marshall Islands are two strings of atolls located in the North Pacific between Australia and the Hawaiian Islands. Their main exports are marine goods, coconut products, and handicrafts. Marshallese climate can be unpredictable, with climate change directly impacting the islands. In addition, securing sufficient sources for fresh water is a constant struggle. Because of these issues, many inhabitants of the islands live in poor circumstances, with bad health and little access to energy sources.

Since their year of independence in 1986, the Marshall Islands Government has been engaged in an uphill battle of physical, economic and environmental survival. Fortunately, there are a number of international lifeguards who are helping to keep the Marshallese government afloat.

The United States (U.S.)
One problem the Marshall Islands Government does not have to worry about is military security. Though it is a sovereign state, its military protection is provided by the U.S. But security is not the only service that the United States provides to the islands. The U.S. affords educational, medical and infrastructural aid, and donates funds in an effort to help the islands eventually attain economic self-sufficiency.

Roughly 50 percent of the revenue that the government obtains is gathered from foreign aid, and a large portion of this comes from U.S. coffers due to an agreement entitled the “Compact of Free Associations” which exists between the two nations.

Federal Emergency Management Agency (FEMA)
Though it is an entity within the structure of the United States government, FEMA merits particular mention. Operating under the supervision of the Department of Homeland Security, FEMA’s standard focus is the prevention, response and recovery from disasters that occur within U.S. borders. However, due to the Compact of Free Associations, the agency is also obliged to assist the Marshall Islands when disasters arise.

Just this year, the Marshall Islands have been experiencing one of the worst droughts in their nation’s history, collecting only a quarter of the rainfall that they typically obtain. On April 1st, Marshallese President Hilda Heine declared a state of emergency, and on April 28th FEMA announced that it has allotted federal disaster assistance to the Marshall Islands Government. Millions have been spent in past years on similar disasters.

Australia
The Marshall Island’s southern neighbor, Australia, is dedicated to supporting the islands in the economic and climatic issues. Between the Marshall Islands and two other North Pacific states, the Australian Government has pledged almost $10 million within the next fiscal year.

Australia’s goal is to increase access to water, sanitary facilities, and education. Additionally, Australia is helping to introduce a new public school system and spreading gender equality awareness throughout the islands. Many of these objectives have been reached through the sponsored delivery of water containers and the establishment of better education and scholarships to continue on to higher schooling.

The United Nations (U.N.)
The Marshall Islands and other low-lying countries are particularly susceptible an increase in global temperature.  It is projected that low-lying countries like the Marshal Islands will be submerged, or at least uninhabitable, if the global temperature rises just 2 degrees Celcius above pre-industrial levels.

In response to this dilemma, the U.N. has held multiple conferences over the last months in an effort to promote awareness and compliance to goals regarding carbon emissions. Just last month 175 countries were gathered in Paris to sign an agreement on the reduction of fossil fuel usage. The U.N. noted that this conference marked the largest number of countries to sign an international agreement at one time in the history of the world.

The Japan International Cooperation Agency (JICA)
A less recognized, but equally engaged organization is the Japan International Cooperation Agency. JICA focuses on what they call “inclusive development,” which emphasizes individual initiative in evaluating one’s own situation to improve it. JICA simply provides the resources necessary to carry out these improvements.

For the Marshall Islands, JICA is carrying out programs to improve waste control and worldwide education programs. JICA has been training volunteers to travel world-wide in an effort to address these issues, and in 2015 alone almost 3,500 volunteers traveled to the pacific to assist in humanitarian aid projects.

Despite the aid that these organizations are providing to the Marshall Islands, many inhabitants of the country live without the basic necessities of life. Further efforts are needed bring these individuals out of poverty. According to the World Bank, development must begin within the Marshall Islands Government. They commented, “The growth in the economy would be strengthened and sustained by the government’s commitment to reform.” The rest of us simply need to do our part.

– Preston Rust

Photo: Flickr

Why Vaccines are an Economic Investment

Vaccines_are_an_Economic_Investment
In addition to preventing serious illnesses, vaccines are an economic investment as they have the added bonus of saving money. As fewer people get sick, this reduces the need for complex and often long-term medical treatment which allows communities to save greatly.

Research from the Johns Hopkins Bloomberg School of Public Health, in addition to other studies, has shown that the returns on vaccines are 16 times the investment; that is to say, every dollar spent on vaccines, on average, saves sixteen dollars in future medical spending.

The journal Health Affairs, which published the Johns Hopkins study, noted that when other factors are considered beyond direct medical costs, such as time not taken off from work due to illness, the return rises to as high as $44 for every dollar spent.

While the economic benefits of vaccinations are great for every country, they especially matter in poor or developing countries, where funds are often stretched thin and accessing affordable health care can be difficult if not impossible.

The World Health Organization estimates that malaria costs Sub-Saharan Africa $100 billion every year. In a region plagued by poverty, that is too much money for countries to be spending on preventable diseases.

Vaccines show that when we invest in prevention, we can make huge savings on treatment. In turn, the money that would be spent treating preventable diseases can go to other places, such as to education, poverty reduction schemes or energy programs.

Vaccines are an economic investment that not only save lives, but they also save money in so many ways, not just treatment costs.

When people are sick with a debilitating illness, not only do they spend money on treatment, they lose money when they cannot work resulting in a vicious cycle of economic hardship. Continued increased access to vaccines can help millions around the world.

– Emily Milakovic

Photo: U.N. Multimedia

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Five Ways Global Communities Fight Poverty in Ghana

Global Communities Poverty in Ghana
A non-profit organization called Global Communities works to end poverty in Ghana with a 5-point plan in conjunction with USAID’s Multi-Sectoral Nutrition Strategy.

The non-profit organization works in more than 20 countries around the world, with Ghana being a focus of the recent programs. Global Communities, created about 60 years ago, works with the private sector, governments and local communities to provide the “means and ability to live and prosper with dignity,” something it ensures under its organization’s vision.

The Maryland-based organization paired with USAID in support of the Multi-Sectoral Nutrition Strategy to be implemented over the years 2014-2025. The program’s goal seeks to reduce chronic malnutrition by 20 percent over those 11 years. Global Communities has put forth these five goals in hopes of accelerating the fight against malnutrition in Ghana.

1. Provide more opportunities for economic growth through microfinance

Individuals who do not have access to the capital provided by large financial services corporations can gain access to funds through various microfunding institutions. These smaller companies allow a more intimate relationship between the lender and the borrower. Global Communities works through Boafo Microfinance Services in order to provide low-income Ghanaians with the money for new businesses, education and homes.

2. Build a more “resilient” Ghana by improving the nutrition in local diets

In order to reach this goal, Global Communities has partnered with the USAID/Ghana Resiliency in Northern Ghana (RING) program to “reduce poverty and improve the nutritional status of vulnerable populations.” The introduction of the sweet potato in local Ghanaian farms was a successful implementation of the partnership. Both USAID and Global Communities hope to educate communities on the importance of good nutrition instead of just providing temporary relief.

3. Create pathways for urban youth to become financially independent

Global Communities has joined the Youth Inclusive Entrepreneurial Development Initiative For Employment in opening up the construction sector to Ghana’s youth. In five of the biggest cities in Ghana, the initiative hopes to “reach more than 23,000 youth” by teaching them the skills for employment. Because Africa’s youth makes up a majority of the population, targeting this demographic is the most effective way to reducing poverty in Ghana.

4. Improve access to clean water and sanitation

Working with both the public and private sector, Global Communities is working to enhance the current water and sanitation infrastructure. With focus on “slum communities” in three cities, the non-profit seeks to optimize every individual’s condition while constructing water and sanitation services that can be sustainable. These efforts are paired with USAID’s Water Access Sanitation and Hygiene for the Urban Poor (WASH-UP) and USAID’s WASH for Health (W4H). An important part of the relief is affecting a change in behavior which can help create a poverty-free society that operates without relief.

5. Upgrade local neighborhoods and reinforce political and social institutions

After the basic needs of food, water and shelter are met, a society can begin to upgrade its political, economic and social conditions. Global Communities, with the Bill & Melinda Gates SCALE-UP program, echoes this idea as it reinforces educational and financial institutions for residents in the low-income communities of Accra and Sekondi-Takoradi. The expansion of government services, such as female inclusivity and public transportation, in those regions is being implemented through the Our City, Our Say project.

Global Communities is just part of a larger non-profit coalition fighting against global poverty in Ghana. The process includes numerous programs with funding from various foreign governments, each generating results through their focus on different parts of the Ghanaian society. Readers can follow the various programs and outcomes on the Global Communities website.

– Jacob Hess

Sources: Global Communities 1, Global Communities 2, USAID 1, USAID 2
Photo: Borgen Project

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Emerge Poverty Free Enables Communities

Poverty FreeEmerge Poverty Free is a nonprofit organization whose mission is to break the cycle of poverty by enabling communities to take control of their own needs.

In partnership with a local organization, Sustainable Investments and Development Initiatives (SIDI), Emerge Poverty Free has begun a project in Mwanza, Tanzania to empower hundreds of fisher-women through economic and environmental conservation projects.

Tanzania is known as one of the world’s least developed rural countries, where 40 percent of the adult population earns less than 1.25 USD per day.

The goals of the Sustainable Fisheries in Mwanza project are to enable women to become self-sustainable while also improving the environment of Lake Victoria that is threatened by pollution and excessive fishing.

To reach these goals, 250 women from the Kabusuli village of the Sengerema District in Mwanza have been trained in fish farming and healthcare. The group hopes to plant 10,000 trees along the Lake Victoria shore at the end of the project.

These trees will eventually be used to provide local families with wood for cooking and building materials to reduce deforestation.

Though a fairly new project, Emerge Poverty Free reports that women involved in the group have already doubled their daily incomes by selling fish within their communities during the past 10 months.

According to Aneta Dodo, secretary of the Sustainable Fisheries in Mwanza, the group has planted 6,000 trees, created five fish ponds for domestic use and local sale that have brought high profits — and a portion of the money earned by these women funded school tuition for 30 local children.

“We have gained a lot of expertise in finance issues, fishing, environmental conservation and we are able to do most things by ourselves without having to depend on men,” she said.

Dodo reports that the group was able to secure low-interest rate loans after the group started a saving and credit facility in their village of Kabusuli.

Despite these successes, the women of Tanzania still face many economic challenges — girls have higher education drop-out rates than young men and have limited access to medical care and employment, according to Emerge Poverty Free.

Group member Asha Malando does not see these statistics as an end-all and believes that women are still capable of empowering themselves by becoming involved in community projects.

“The government cannot do everything for us. We just have to use some of these organizations well so we can develop ourselves.”

Coleta Masesla, a female fisher in Tanzania, is now able to run her own food kiosk that provides income for her children’s education and home essentials like food and clothing.

“These women have become great role models in their community as they have proved that everything is possible. Most of them had lost hope but right now they are the ones running their families. We at Emerge Poverty Free are pleased by the attitude they have shown toward lifting themselves out of poverty,” stated Jeremey Horner, Emerge Poverty Free CEO.

– Kelsey Lay

Sources: Emerge Poverty Free 1, Emerge Poverty Free 2, IPP Media, The Daily News
Photo: Flickr

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Millennium Challenge Corporation Seeks Expansion

Millennium Challenge Corporation
The Millennium Challenge Corporation (MCC) is seeking approval from Congress to expand its operations over the coming years via the Millennium Compacts for Regional Economic Integration (M-CORE) Act.

In a recent testimony before the Senate Foreign Relations Committee, MCC CEO Dana Hyde argued that the organization would be more effective if given the authority to make regional investments, in addition to the single-country investments it is currently authorized to make.

“By making coordinated regional investments across multiple eligible countries, MCC can help countries work together to build and grow regional markets…and help generate new business and market opportunities for U.S. and other companies,” Hyde said.

The MCC has a singular mandate: reduce poverty through economic growth. The organization does this by initiating joint public-private investment projects in countries working toward democratic governance, open markets and human development.

Since its creation in 2004 by President Bush, the Millennium Challenge Corporation has committed $10 billion in over 58 projects in 25 countries. Around 70 percent of this investment has gone into infrastructure projects like highways and ports and an increasing percentage is being invested in energy.

The organization is currently only allowed to initiate projects within single countries, which, according to Hyde and other experts, is an impractical development strategy.

According to Hyde, countries cannot develop economically if they are unable to trade with their neighbors. Regional projects like cross-border highways and railways could make a bigger impact – especially among groups of small states.

“It’s easy to think about how regional engagement might be beneficial in the context of electricity,” said Center for Global Development President Dr. Nancy Birdsall. “The logic of a shared grid across borders is clear. To work, countries involved need to commit to a strong regulatory and financial structure outside the auspices of a single government for power trading and pricing.

However, initiating projects across multiple countries also poses a number of challenges. One such challenge occurs because neighboring countries are often not at the same level of development. For example, if the MCC wanted to begin a project across two countries, one may meet the required indicators for open governance and human development while the other might not.

The organization currently bridges this gap by undertaking threshold programs designed to assist near-eligible countries to become ready for investment.

Now, it wants the additional authority to conduct threshold programs at the same time it begins investment projects – meaning countries can begin projects before they are fully eligible to do so.

It may seem counter to MCC’s mandate, but Hyde argued that it is a necessary.

In her testimony, Hyde said the Millennium Challenge Corporation has a proven record of implementing successful country projects and is well equipped to take on the challenges of regional investments without straying from its mandate.

– Ron Minard

Sources: American Progress, Senate.gov 1, Senate.gov 2, MCC
Photo: Wikipedia

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Creative Industries Offer Economic Opportunity

Economic_Opportunity_in_AfricaWhen it comes to creating jobs and economic opportunity in Africa, industries such as agriculture, mining and oil typically receive the most attention and investment from governments.

However, the cultural and creative industries are consistently overlooked as viable avenues for economic growth. These industries include food, film, fashion, textiles, literature, music, performing/visual arts, museums and more.

Africa is no exception to the massive potential benefits that these industries could yield. The recent worldwide growth of tourism serves to further generate increased exposure and outside interest as well.

Further, the labor-intensive aspect of the creative industries offers an opportunity to generate more skilled and unskilled jobs. Additionally, this is a sector where modern technology can be adopted at a relatively low cost of investment.

Though there is no shortage of creative talent in Africa, there are logistical and infrastructural obstacles.

These barriers include a lack of skilled managers and industry professionals, lack of avenues for training artists’ technical competence, poor packaging and lack of standardization of cultural products, and poor distribution systems.

In order to move forward, governments will need to increase investments and implement relevant policies for the cultural and creative industries. An increase in economic opportunity in Africa through the arts requires government support.

Global and regional supply chains across the continent should also be built that will, in turn, create new trade patterns for African economies. For this to happen, there needs to be increased collaboration between global and Africans brands, designers/manufacturers, and development partners and governments.

Though there is a lot of work to be done, recent developments point to the strong possibility of incoming progress in the future.

Efforts to direct focus to the arts and address obstacles have recently emerged. For example, at Economic Community of West African States (ECOWAS) stakeholder meetings in May 2015, the fifteen member states were urged to shift their focus from timber, cocoa and mineral exports to the introduction of relevant policies and funding for arts and cultural industries that will generate new economic opportunity in Africa.

In addition, ECOWAS members were called upon to support artists with training and offer them opportunities to collaborate with international partner organizations to help quality, standardization and packaging.

Further, the African Development Bank’s Office of the Special Envoy on Gender (AfDB) launched several initiatives in 2015. Such initiatives included Fashioeconomics, an event which brought together fashion designers and development partners to talk about the challenges of securing financing to build up the sector.

Additional forums and events regarding the fashion industry have also taken place, with participants highlighting the needs for innovative financing mechanisms to provide incentives to grow the industry.

Participants also highlight the need for fresh approaches to scale up African design firms through entrepreneurship, training and skills development, and boosting access to finance and global markets.

– Anton Li

Sources: The Africa Report, XinhuaNet, Daily Nation, African Development Bank Group (AFDB)
Photo: Flickr

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UN: New Efforts to Reduce Climate Change and Poverty

Reduce Climate_Change_and_PovertyOn December 5, officials from 195 different countries agreed on a proposal to reduce global carbon emissions in an effort to reduce climate change and poverty worldwide. The United Nations Framework Convention on Climate Change (UNFCCC) has released the drafted agreement that addresses issues relating to reducing climate change and poverty such as food security, deforestation and cutting greenhouse gas emissions. There are three global goals listed in the draft agreement, the first being to “maintain global average temperatures short of a two degrees Celsius increase over pre-industrial global temperatures.”

According to the National Centers for Environment Information (NOAA), every state in the U.S. had above-average fall temperatures during September and November of last year. The average global temperature during the month of October was the highest ever recorded.

The second goal of the climate change draft proposes increasing a nation’s ability to adapt to resulting climate change and respond effectively. The United Nations Environment Programme (UNEP) warns that climate change is a threat to economic growth in Africa and other parts of the developing world.

A World Bank report finds that globally, poor people are at high risk for climate-related disasters, so it is important for communities to develop early warning systems. Being prepared for a catastrophe, like flooding or crop damage due to heat, can save resources and help to counter the effects of climate change on the economy.

The third global goal of the UNFCCC climate change draft suggests creating sustainable development strategies in order to create climate-resilient communities with minimized greenhouse gas emissions to reduce poverty rates.

The climate change draft to reduce poverty also includes the following proposal: “Developed countries shall provide developing countries with long-term, scaled-up, predictable, new and additional finance, technology and capability-building.”

According to the World Bank, climate change can put 100 million more people into poverty by the year 2030. John Roome, Senior Director for Climate Change at the World Bank Group, recognizes the importance of creating sustainable development strategies to reduce climate change and poverty.

He states, “We have the ability to end extreme poverty even in the face of climate change, but to succeed, climate considerations will need to be integrated into development work. And we will need to act fast, because as climate impacts increase, so will the difficulty and cost of eradicating poverty.”

– Kelsey Lay

Sources: CNN, National Centers for Environment Information, NPR, United Nations Environment Programme, United Nations Framework Convention on Climate Change
Photo: UN

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Mozambique Entrepreneurs Change Lives with Bikes

mozambikes
Mozambique entrepreneurs have created the award-winning social enterprise Mozambikes builds low-cost bicycles to improve the livelihoods of thousands of people in Mozambique. Affordable and efficient bicycle transportation can greatly impact the pace of development in a country with 54 percent of citizens living below the poverty line, especially in rural areas.

In addition to bringing economic opportunities, Mozambikes is committed to improving the lives of 50,000 Mozambicans by 2018. The company and affiliated non-profit Mozambikes Social Development intends to reach this goal through the sale and donation of affordable branded bicycles.

Mozambikes’ unique branding strategy has created three avenues of distribution. The first allows customers to brand and purchase bicycles for their own business needs, such as employee incentive programs. Other customers choose to brand bicycles sold to low-income markets.

Branding customers allow Mozambikes to sell the bicycles at a subsidized rate. For advertisers, it is an opportunity to tap into remote rural markets. Bicycles can also be donated through Mozambikes Social Development for about $100.

These bicycles are purchased at cost from Mozambikes and donated to those who still cannot afford a bicycle. Co-Founder and Chief Executive Officer Lauren Thomas said in an article published on The Guardian, “A bicycle may seem like such a small item to many, but it is quite literally life-changing in rural Africa.” Mozambique_entrepreneurs

The bicycles are specifically designed for use on the bumpy roads in Mozambique with large luggage racks for transporting goods. The design also accommodates traditional skirts with a diagonal crossbar. Local technicians assemble the bicycles and after-market maintenance has created a demand for more bicycle technicians.

In comparison with regional competitors, Mozambikes’ product is better quality and more affordable. The company hopes to improve the bicycle industry of Mozambique through these innovations.

Bicycles can have a significant impact in low-income communities and aid development. In Mozambique, two-thirds of people walk more than an hour to the closest health center. Bicycles provide increased access to education, health care and are a clean energy solution.

In five years, Mozambikes has sold or donated over 7,000 bicycles and plans to increase that number to 125,000 by 2020. In rural Africa, a bicycle is generally considered a household items aiding not only individuals but also entire families.

It is estimated that 70 percent of Mozambicans rely on income from what they can produce, largely through subsistence farming. Transportation is essential in this informal economy. Fetching water, maintaining crops and getting products to market are all made easier with access to bicycles.

As a Mozambique business, Mozambikes employs about 12 workers and pay salaries above minimum wage. The company also strives to empower women, provide training for bike technicians, and educate cyclists about safety.

Mozambikes hopes to benefit a million Mozambicans through low-cost, efficient transportation. Each bicycle improves another Mozambican’s livelihood.

Thomas affirms the company’s long-term vision: “Some people come and go, but we are really committed to making this an ongoing, sustainable business, and there is still so much more we can do.”

– Cara Kuhlman

Sources: The Guardian, How We Made It In Africa, Mail & Guardian, Mozambikes, Mozambikes YouTube Channel
Photo: Wikimedia, Flickr