Archive for category: Financial Instruments

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Kotani Pay: Can Blockchain Reduce Poverty?

Kotani PayIn many developing countries, people lack access to financial instruments such as mobile banking. These services often require smartphones and the internet, creating a major barrier for low-income communities and limiting participation in the global economy. As a result, cash is often the only option, leaving individuals without secure ways to save or transfer money. According to the World Bank, 51% of adults in sub-Saharan Africa are without a bank account.

Financial inclusion is crucial for poverty alleviation. Services such as blockchain can expand access to financial systems, reduce transaction costs, and provide security and transparency. Innovative platforms such as Kotani Pay, a blockchain-based system that does not require the internet, are bridging the gaps in Africa.

What is Blockchain?

Blockchain is a decentralized and tamper-proof digital ledger recording transactions across a distributed network. It is a technology which provides security and transparency without the need of traditional intermediaries such as banks. This allows faster, cheaper and more efficient transactions without people needing a traditional bank account.

Key benefits of blockchain include:

  • Security and transparency: Transactions are recorded immutably and can be verified without a central authority
  • Lower costs: Reduces fees compared to traditional banking or remittance services
  • Global access: Enables cross-border payments and international trade even for underserved populations

By reducing these barriers, blockchain can reduce poverty by giving individuals a tool to save, invest, and receive financial support.

Blockchain and Financial Inclusion

Many financial systems are designed assuming users have smartphones, internet access, and identification documents. Throughout Africa, however, millions of people lack these resources, especially in rural areas. Blockchain platforms that adapt to local realities, such as supporting Unstructured Supplementary Service Data (USSD) transactions or mobile-money-compatible wallets, can extend financial services to previously excluded populations.

Stablecoins, digital currencies pegged to traditional assets like the U.S. dollar, also reduce the risk of currency fluctuations for low-income individuals, making savings and transfers more predictable. By providing low-cost, accessible financial services, blockchain directly contributes to poverty reduction.

What is Kotani Pay?

Kotani Pay is a Kenyan startup which brings financial services to those without internet or traditional bank accounts. Kotani Pay is a service that lets users access blockchain and cryptocurrencies via USSD. Using USSD codes, Kotani Pay enables users to:

  • Send and receive money securely
  • Convert digital assets into local currency
  • Participate in programs such as Universal Basic Income (UBI)

“We built Kotani Pay to bring financial instruments and services to those who do not have access to the Internet or have the capital and credit standing to open a bank account, thus increasing financial freedom.”

How It Works

Users can dial a short code on their phone to access a menu where they can convert crypto to fiat, and vice versa. This simplified process enables users to transfer funds between their blockchain and wallet. Kotani Pay uses a stablecoin, Celo Dollars (cUSD), which is pegged to the U.S. dollar, protecting users from the otherwise common volatility of cryptocurrencies.

Because Kotani Pay focuses on helping underserved communities, they correct the typically high fees for cross-border transactions, increasing financial stability for those sending money abroad to their family, or those crossing borders fleeing for safety.

Since its launch, Kotani Pay has reached more than 15,000 beneficiaries, including refugees, gig workers, and rural farmers, UNICEF reports. By providing predictable financial support and easy access to transactions, Kotani Pay helps people start small businesses, save safely, and engage with the economy.

The Future

In the fight for financial inclusion, blockchain could reduce poverty more effectively than conventional banking reforms. Blockchain is not the only and sole solution, but it can play a key role in reducing financial exclusion. If Kotani Pay proves successful, the opportunity for scalability is huge. And with that, reduce global poverty. Its main challenge however, is regulation and legislation. With a mission of serving the entire continent, meeting each countries’ regulatory requirements has slowed its growth. But it has not halted its mission.

Whether blockchain reduces poverty is down to how effectively governments, innovators, and communities can implement inclusive and affordable solutions. By providing secure, low-cost, and accessible financial tools, blockchain platforms like Kotani Pay are helping African communities participate in the global economy.

– Ashley Pfeifer

Ashley is based in London, UK and focuses on Business and NGood News for The Borgen Project.

Photo: Flickr

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The Impacts of Savings Groups in Malawi

Savings Groups in MalawiMalawi is a low-income country in East Africa. It is one of the 10th most impoverished countries in the world in terms of GDP per capita and more than 50% of its population officially lives below the national poverty line. Many Malawians do not have access to formal banking due to a lack of banking infrastructure or a fundamental lack of personal wealth. Savings groups in Malawi have primarily replaced banking and have the potential to eradicate poverty in this country.

What Are Savings Groups?

Savings groups are small community-based groups, between 15 and 25 people, who each place an amount of money into a central holding, allowing them to save money on a small and relatively stable basis. They provide a transparent and democratic form of microfinance, serving as an alternative where formal banking is unavailable. Benefits include:

  • Loans become available to more impoverished people who cannot access them from formal institutions.
  • Young people can learn how to save, borrow and invest money in a safe environment, rather than going into adult finance without experience.
  • Women, generally one of the most vulnerable groups economically, can gain independence through savings groups.
  • Essential local infrastructure can be sustainably built and maintained.

Crucially, Plan International emphasizes that savings groups are vital in reaching the first Sustainable Development Goal (SDG). The SDGs are a set of international goals agreed upon by the U.N. and targeted for completion by 2030, with the first goal focused on eradicating global poverty in all its forms.

Impacts of VSLAs in Malawi

Village Savings and Loans Associations (VSLAs) are a version of savings groups in Malawi, organized at the village level rather than within smaller groups. They are widespread throughout the country. Impacts include:

  • Savings: Villages working under VSLAs have reported a 34% increase in savings over the last 1.5 to 3 years compared to villages without them.
  • Loans & Credit: Households that are part of a VSLA have increased access to credit and loans. In VSLA areas, the borrowing costs of people taking loans have fallen by 20%.
  • Businesses: VSLAs have correlated with a rise in the number of businesses and profits in Malawi, but household incomes have not yet changed. Although income rises with profits, the effect can be expected to be staggered. Businesses cannot realistically increase incomes until their profit gains prove to be sustainable rather than a one-off.
  • Food Security: Although savings groups in Malawi have not yet had a significant impact on food security, according to Innovations for Poverty Action (IPA), they have helped mitigate the negative effects of droughts. On average, VSLAs have also increased food consumption by one meal per week, showing gradual improvements.
  • Women: VSLAs have had a clear positive impact on women. Malawian women in savings groups report being more empowered, with greater ability to make decisions for themselves and their households.

Malawi is also pursuing digital means for its financial future. According to IPA, the main focus currently is on digitizing records and monitoring how it improves access to finance across the country.

How Effective Are Savings Groups in Malawi?

The IPA report shows that saving groups have been incredibly influential in Malawi. They have provided a vehicle through which the Malawian people can bring themselves up financially. Women have significantly benefited, able to become increasingly economically and socially independent. While there is still a long way to go in eradicating poverty in countries like Malawi, saving groups have proven to be a reliable solution in many aspects and will help push the world toward reaching the primary SDG by 2030.

– Oliver Evans

Oliver is based in Devon, UK and focuses on Good News for The Borgen Project.

Photo: Flickr

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GiveDirectly’s Cash Transfer Scheme

GiveDirectly’s Cash Transfer Pilot SchemeGiveDirectly is a nonprofit organization that has adapted an unconventional approach to poverty alleviation. Founded in 2009, the organization has been sending direct cash transfers to people living in extreme poverty, distributing more than $900 million to around 1.7 million recipients across Bangladesh, Kenya, the DRC, Liberia, Malawi, Mozambique, Rwanda and the United States (U.S.). Unlike traditional aid models, which often predetermine what impoverished communities “need”, GiveDirectly’s cash transfer scheme prioritizes autonomy. It ensures that the recipients themselves decide what to spend the money on, recognizing that the poor can identify their own needs. 

How it Works

GiveDirectly primarily operates through mobile money platforms, sending recipients one lump sum through a single online transfer. How to spend the money is entirely up to the individual’s discretion, but typically people choose to spend it on health care, education and housing improvements. Typically, the organization targets whole villages at a time. All households eligible within a given community receive the same transfer, which greatly minimises tension but maximises collective benefit.

Cash transfers remain an uncommon form of aid, but there is strong evidence to indicate the effectiveness of this method, especially when it comes to health. 

Impacts on Infant Mortality

In rural Kenya, GiveDirectly’s cash transfer pilot scheme, in partnership with Lwala Community Alliance, led to measurable improvements in infant mortality rates. Infant mortality rates in rural Kenya remain six times higher than in the U.S., largely due to barriers in accessing prenatal care, safe delivery environments and adequate nutrition. 

According to reports, 1,500 expectant mothers received a single cash transfer, alongside community-based health support. Most women used this money to fund transportation to and from clinics, prenatal visits, food and to purchase items for their newborns. The outcome of the scheme was notable. Infant mortality decreased by 48%, underscoring how financial empowerment, even though only a moderate sum, can enable mothers to secure essential resources that allow for safer pregnancies and healthier babies.

Impacts on Illness

Beyond maternal health, direct cash transfers have also been of significant benefit to individuals living with or at risk of infectious disease, such as tuberculosis (TB). Although TB is both preventable and curable, poverty remains a barrier as many of the poorest populations live in overcrowded conditions, with poor ventilation. Cash transfers enable households to invest in conditions that reduce vulnerability to infection.

Recipients can afford cleaner and less crowded housing, purchase more nutritious food to strengthen immunity access medical treatment if needed. For those already infected, transfers can also provide the financial security necessary to take time off work and focus on rest and completion of treatment. All of these factors remain essential for the prevention of transmission, crucial for bringing rates of disease down.

Evidence from Brazil illustrates this impact further. A national cash transfer programme led to a 50% reduction in TB cases, strongly suggesting that financial assistance plays a significant role in tackling the disease. These findings reinforce the conclusion that cash transfers are an effective tool in increasing the health of the poor, where money remains a key barrier.

A Call for Cash Transfers

GiveDirectly’s positive findings highlight the positive potential of cash transfers within the humanitarian aid sector. Through shifting the decision-making power into the hands of the recipients, these programs have produced measurable improvements in health and well-being. Crucially, however, they affirm the agency and autonomy of individuals living in poverty, challenging the narrative that the poor are passive or incapable of making effective choices for themselves.

– Niamh Trinder

Niamh is based in Leicester, UK and focuses on Global Health for The Borgen Project.

Photo: Flickr

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Financing the Future: Samurai Bonds Helping Kenya Grow

Samurai bondsOn August 21, 2025, Kenya secured 25 billion yen (about $169 million) through Japan’s Samurai bond market, a yen-denominated debt instrument backed by Nippon Export and Investment Insurance. The deal is aimed at strengthening Kenya’s vehicle assembly industry and addressing inefficiencies in the energy grid, where transmission losses currently consume nearly a quarter of national output. This marks the first time Kenya has tapped into Samurai financing.

It underscored its efforts to diversify funding sources and pursue more cost-effective borrowing options to finance the future and help Kenya grow. Kenya’s gross public debt has climbed steadily in recent years, from 45.7% of gross domestic product (GDP) in 2015 to 67.8% in 2021. Infrastructure projects and reliance on Eurobonds and bilateral loans drive this. This makes the move toward Samurai financing particularly significant as part of a broader debt diversification strategy.

Why Samurai Bonds Matter

Samurai bonds are yen-denominated loans issued in Japan by foreign entities. For developing countries like Kenya, they represent a critical opportunity to access Japanese capital markets and secure funds at lower interest rates than many dollar-denominated loans. With global debt burdens rising, innovative tools like Samurai bonds provide nations with greater financial flexibility and protection from volatile Western credit markets.

Kenya’s choice to issue Samurai bonds reflects a broader global trend. Countries such as Indonesia and the Philippines have also experimented with similar instruments, demonstrating their usefulness as a way to diversify financing while strengthening international ties. Economists believe these types of bonds, along with Panda bonds in China and sustainability-linked bonds, will become increasingly important.

They help nations manage debt while also seeking funds for sustainable development. As of the most recent analysis, 43% of Kenya’s external debt is multilateral, 31% bilateral and 27% commercial, which are mainly Eurobonds. Samurai bonds provide a way to rebalance this mix and reduce exposure to high-cost commercial borrowing.

Direct Benefits for Kenya

The immediate benefits of Kenya’s Samurai bond financing are of great importance for financing the future of Kenya. First, the funding will support job creation in the country’s growing vehicle assembly plants, part of its broader plan to become a regional manufacturing hub. Second, by modernizing energy infrastructure, the financing will help reduce electricity transmission losses, improving grid reliability for both households and businesses.

This will cut costs, boost productivity and increase competitiveness for local industries. Additionally, tapping into new markets signals investor confidence in Kenya’s long-term prospects. This may encourage future international investment, making it easier for Kenya to access capital at favorable rates.

By diversifying its funding sources, Kenya can avoid over-reliance on a single market or currency, reducing vulnerability to global economic shocks. The Debt Sustainability Analysis has noted that Kenya is vulnerable to external “market financing shocks” as Eurobond markets tighten. This risk has grown, especially following the Russia-Ukraine conflict and global monetary tightening.

A Solution-Focused Shift

Beyond its immediate economic benefits, the Samurai bond deal highlights a solution-oriented approach to Kenya’s development challenges. Traditional loans have often come with high interest rates, rigid repayment terms or political conditions. By pursuing Samurai bonds, Kenya is demonstrating how developing countries can use innovative financial tools to secure resources that are both affordable and aligned with their development needs.

This move also shows the immediate effect of global partnerships in supporting Kenya’s growth. For Kenya, the deal is not only about managing debt, it is about investing strategically in sectors that will generate long-term returns. By strengthening vehicle assembly and energy, the government is targeting industries with strong multiplier effects.

New jobs, better infrastructure and increased investor confidence all feed into broader economic growth to finance the future of the country. Other developing nations may see this as a model worth replicating, signaling a shift toward creative financing solutions that link global capital to local development goals.

Looking Ahead

The full impact of the Samurai bond deal will take time to measure. However, it already represents an important milestone in Kenya’s financial strategy. By turning to innovative financing mechanisms, the country is showing how global partnerships can unlock resources that directly improve people’s lives.

For citizens, the results of global partnerships could include more reliable electricity, new employment opportunities in manufacturing and greater stability in the economy. For the international community, the deal highlights the importance of offering developing nations access to affordable financing tools that allow them to chart their own paths toward sustainable growth.

Kenya’s foray into Samurai bonds is more than just a loan. It is a reminder that creative financial solutions can drive development, reduce poverty and build resilience in a rapidly changing world.

– Nilay Ersoy

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

Photo: Pxhere

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Women’s Economic Empowerment in Southeast Asia

Women’s Economic Empowerment in Southeast AsiaAcross rural areas of Southeast Asia, self-managed rotating savings and credit associations (ROSCAs) are transforming the economic landscape for women in Vietnam, Cambodia and Myanmar. These community savings and loan groups, built on mutual trust and cooperation, enable women who often lack access to formal banking systems to pool resources, gain capital and invest in small businesses. The ripple effects on household poverty reduction, social capital formation and rural economic diversification are profound, providing a grassroots model for women’s empowerment and inclusive development.

Women’s Economic Empowerment in Southeast Asia

ROSCAs are informal financial groups where members regularly contribute a fixed amount of money into a common fund. This fund is then rotated among members, granting each person access to a lump sum during their turn. Unlike traditional banks, these groups rely on social trust rather than collateral or credit scores, making them especially accessible for women in rural communities where formal financial institutions often exclude them. 

In Vietnam’s Mekong Delta, for example, women farmers participate in ROSCAs to finance agricultural inputs or start small trade ventures. In Cambodia’s Kampong Cham province, these groups help women fund home-based businesses such as weaving or food production. Myanmar’s Chin State has seen women use ROSCA funds to diversify income by investing in poultry or tailoring.

Impact on Poverty and Social Capital

The benefits extend beyond just access to capital. By participating in ROSCAs, women build networks of mutual support and accountability that foster social cohesion. This social capital can be as valuable as the financial resources, encouraging collective problem-solving and resilience in the face of economic shocks.

Studies from the region indicate that households involved in community savings groups experience greater financial stability and reduced vulnerability to poverty. The ability to invest in income-generating activities directly improves livelihoods, while the collaborative nature of these groups enhances women’s confidence and decision-making power within their families and communities.

Driving Rural Economic Diversification

ROSCAs also contribute to broader rural economic diversification. By enabling women to access credit and manage savings, these groups help shift economies away from single-commodity dependence toward a wider variety of small-scale enterprises. This diversification is critical in mitigating risks associated with agricultural price volatility and climate change impacts.

In Cambodia, some ROSCAs have expanded to include group lending and microinsurance schemes. This allows members to pool risks and protect against crop failure or health emergencies. Such innovations demonstrate the potential for ROSCAs to evolve into more complex financial ecosystems tailored to local needs.

Best Practices and Policy Recommendations

Policymakers and development agencies can strengthen the impact of ROSCAs by considering the following:

  • Capacity Building. Provide training on financial literacy and group management to strengthen sustainability.
  • Legal Recognition. Create supportive regulatory frameworks that recognize and protect informal savings groups.
  • Linkages with Formal Finance. Facilitate partnerships between ROSCAs and microfinance institutions or banks to expand access to credit.
  • Inclusive Participation. Promote gender equity and inclusion of marginalized women to ensure broad community benefits.

Governments in Vietnam, Cambodia and Myanmar are increasingly recognizing the importance of grassroots financial mechanisms. Integrating ROSCAs into national poverty alleviation strategies could unlock significant progress toward economic empowerment and poverty reduction.

Looking Ahead

Community savings and loan groups exemplify how local solutions can address systemic barriers and advance women’s economic empowerment in Southeast Asia. By harnessing the power of collective action and social trust, ROSCAs offer a scalable, culturally appropriate path toward financial inclusion. Supporting these groups through policy, capacity building and access to formal financial systems will be vital to sustaining their impact. In a region where millions of women remain financially excluded, grassroots savings associations are not just a means of survival; they are engines of empowerment, transforming lives and communities one cycle at a time.

– De’Marlo Gray

De’Marlo is based in Long Beach, CA, USA and focuses on Business and Technology for The Borgen Project.

Photo: Unsplash

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The Seville Commitment: Goals, Challenges and the Future

The 2025 Seville Commitment: Goals, Challenges and Future ConsiderationsThe Seville Commitment is the outcome document of the Fourth International Conference on Financing for Development, held on June 30, 2025, in Seville, Spain. This agreement aims to close the annual $4 trillion gap required to achieve the Sustainable Development Goals (SDGs) by 20230 by mobilizing sufficient financial resources through boosting investments, addressing debt challenges and creating a fairer financial system.

The Background

In 2000, leaders endorsed the Millennium Declaration, which focused on poverty reduction and development as major priorities. They highlighted the challenges developing countries faced in securing sufficient financial resources. In response, they called for a high-level conference to tackle this issue. In 2002, the First International Conference on Financing for Development took place in Monterrey, Mexico. Leaders adopted eight Millennium Development Goals, emphasizing the imperative need for mobilizing financial resources to eradicate poverty and improve living conditions.

In 2008, the second conference held in Doha, Qatar. Leaders adopted an expanded list that includes boosting foreign investment, increasing international cooperation and providing developing nations with debt relief. In 2015, the third conference took place in Addis Ababa, Ethiopia. Leaders produced the Addis Ababa Action Agenda, a new global roadmap for financing development. This new global framework includes protecting the environment, promoting peaceful societies, employment, public services, hunger, sustainable industrialization and infrastructure. In this event, leaders pointed out the gap in financing required to fulfill the development goals. After that, the United Nations (U.N.) substituted the eight Millennium Development Goals with a more demanding 17 SDGs. 

In 2025, the fourth conference was held in Seville, Spain. Leaders discussed the issues for financing development that emerge in a challenging time as countries face increasing debt levels, ongoing conflicts and a decelerating economy. In response, they adopted the Seville Commitment that focuses on solutions to bridge the annual $4 trillion gap in financing development and 130 initiatives were introduced by a coalition of countries, international organizations and other partners.

The Seville Commitment Goals

The Seville Commitment aims to bridge the annual $4 trillion gap required to achieve the SDGs through several actions, including:

  • Increasing the minimum tax revenues to at least 15% of Gross Domestic Product (GDP)
  • Tripling the lending capacity of the multilateral development banks. 
  • Overhauling corporate governance, which includes transparency in how corporations manage funds and measure impact.
  • Addressing the debt challenges by establishing a UN-led group to set guiding principles for lending and borrowing, promoting state-contingent clauses and creating a global debt data registry
  • Creating a fairer financial system by strengthening developing nations’ voices in international financial institutions, such as the International Monetary Fund

Ongoing Challenges

Despite the international cooperation in financing global development, challenges persist. The challenges are as follows: 

  • Cutting the official development assistance by many donors, including Germany, Italy and France, to pay for other priorities such as defense spending 
  • The absence of the U.S, a leader of international development throughout history, at the fourth conference and the termination of many of its foreign assistance programs.
  • Lack of monitoring and accountability systems in markets

Looking Ahead

Reductions in official foreign assistance remain a concern, as they widen the financing gap and slow progress on development efforts. Nonetheless, the Seville Commitment is a major milestone that illustrates the significance of global cooperation in fulfilling the global development goals.

– Eiman Elsawy

Eiman is based in Kirkland, WA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Poverty in Tajikistan: The Impact of Remittances

Poverty in Tajikistan: The Impact of Remittances The Republic of Tajikistan – a landlocked country bordered by Kyrgyzstan, China, Afghanistan and Uzbekistan – is the smallest country in Central Asia. Although rich in natural resources, Tajikistan remains the region’s poorest country, with more than 2 million people living on less than $3.65 per day. Economic growth, driven largely by remittances, contributed to a decline in the poverty rate by around 9% in 2024, with GDP growth estimated at 8.4%. While these gains are encouraging, remittances alone cannot ensure long-term stability and ongoing efforts are necessary to improve living standards.

Remittances and Poverty in Tajikistan

Remittances—monetary transfers made by migrants working abroad—play a central role in Tajikistan’s economy. In 2024, remittances accounted for nearly half of the country’s GDP, with most funds sent by Tajik citizens working in Russia. These transfers help cover essential needs and drive domestic consumption. Tajikistan experienced an economic growth rate that averaged above 7% over the last decade, reducing the number of people living in poverty from 32% of the population in 2009 to around 9% in 2024. While estimates from 2023 suggested that more than 20% of Tajiks were still living in poverty, the decline in 2024 was particularly stark.

Although remittances have been effective in reducing poverty by bolstering private consumption and imports. The country’s reliance on economic success in other nations leaves its fragile economy vulnerable to disturbances and crises. As a result, endurable systemic changes within the country are critical to ensuring improved conditions for those experiencing poverty in Tajikistan.

Sustainable Development Strategies

In its National Development Strategy, the Government of Tajikistan set a goal to double or triple domestic incomes between 2016 and 2030; however, reaching this target will require a changed economic growth model centered around a dynamic private sector. Tajikistan maintains strong potential for economic growth due to a younger, growing population and the country’s potential for success in profitable sectors, such as agriculture, food processing, water, hydropower and tourism. In addition, the country is abundant in valuable natural resources and minerals like petroleum and natural gas, aluminum, gold, silver and limestone. The Tajik Aluminium Company (TALCO), one of Central Asia’s largest producers, is a major contributor to the national economy.

Despite this, weak institutions and limited business infrastructure continue to hinder growth. Labor force utilization remains the lowest in the region at just 44%, suggesting that many citizens are underemployed or unable to access productive jobs. To address these challenges, investments in education, transportation and digital infrastructure are key. Improving access to finance, strengthening energy sector efficiency and promoting inclusive economic competition can also support job creation and long-term poverty alleviation.

Looking Ahead

For 2025, the World Bank projects 6.5% GDP growth and an 8.2% decline in the poverty rate. While these numbers are promising, rising global uncertainty poses risks to economic improvement in the region. Officials can potentially expedite reforms in the private and public sectors to support job growth and remedy longstanding poverty in Tajikistan. Strengthening institutions, improving economic resilience and expanding access to opportunity could help ensure that recent gains in poverty reduction are not only maintained but expanded.

– Erin Hellhake

Erin s based in Old Bridge, NJ, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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How the MOBILIST Program Promotes Sustainable Development

 

How the MOBILIST Programme Promotes Sustainable Development
The Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) program connects global investors to investment products that promote sustainable development in developing countries. In February 2025, the United Kingdom (U.K.) announced up to an additional £100 million in funding for the program. This funding expands the program’s ability to mobilize more investment and strengthen its partnerships with entities such as Thai Credit Bank and InfraCredit.

The MOBILIST Program

The U.K.’s MOBILIST program promotes sustainable development by identifying investment products that align with the Sustainable Development Goals (SDGs) and removing obstacles that prevent those products from listing on public exchanges. MOBILIST helps overcome these challenges by offering expertise, hands-on assistance and government backing. This approach improves investor confidence and funding access for SDG-aligned ventures.

The SDGs, adopted by the United Nations (U.N.) in 2015, are a set of 17, wide-ranging targets that aim to achieve long-lasting progress. The SDGs operate on the premise that goals such as ending poverty must align with other objectives, including economic growth and gender equality. By supporting investment solutions that promote the SDGs, MOBILIST brings these products more funding, widening their impact.

The U.K. expects its £100 million funding pledge to attract between £400 million and £600 million in investments. Since its 2021 launch, the MOBILIST program has assisted the public listing of investment products such as the Thai Credit Bank and InfraCredit. 

The Thai Credit Bank

On Feb. 9, 2024, the Thai Credit Bank completed its public listing with support from the MOBILIST program. The bank provides loans to micro, small and medium enterprises (MSMEs). These enterprises are crucial to Thailand’s economy but have difficulty obtaining the funding necessary to grow. Through funding MSMEs, the bank supports the SDG of economic growth, therefore decreasing poverty and raising standards of living.

The Thai Credit Bank will use the profit from its public listing to further finance MSMEs, specifically focusing on businesses in rural areas and those owned by women. As an essential investor, MOBILIST was key in making the IPO possible. The expansion of this SDG-promoting product is an example of how the program promotes sustainable development. 

Infracredit in Nigeria

The Nigerian-based company, InfraCredit, de-risks investing in Nigerian infrastructure projects by providing credit guarantees to investors. Nigeria needs more than $2.3 trillion from 2021 to 2043 to close its infrastructure gap. InfraCredit’s model supports job creation, infrastructure development and clean energy growth, aligning with multiple SDGs.

On April 14, 2025, MOBILIST announced its investment of $6 million to support InfraCredit’s public listing on NASD. The listing attracted local institutional investors, including pension funds. Subsequently, InfraCredit obtained two investments from pension funds since its NASD listing.  

MOBILIST’s investment also supports InfraCredit’s movement toward investing in renewable energy. Its focus on promoting infrastructure, creating jobs, increasing quality of life and its green movement reflects the SDG of clean energy.

Looking Ahead

MOBILIST’s support for Thai Credit Bank and InfraCredit has strengthened their financial reach and visibility. With the U.K.’s additional investment, more companies that align with the SDGs could gain access to capital markets. The program continues to widen its impact by helping sustainable development-focused businesses scale across emerging economies.

– Madison Fetch

Madison is based in Glasgow, Scotland and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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MicroLoan Foundation Malawi: Helping Women Escape Poverty

MicroLoan Foundation MalawiIn Malawi, where 70% of the population lives on less than $2.15 a day, poverty is not just a statistic—it is a daily reality. Access to traditional banking services remains limited, especially for the 90% of Malawians living in rural areas. Women are disproportionately affected, but one organization is working to change that. Since 2002, the MicroLoan Foundation Malawi has shown that small loans, combined with training and trust, can spark meaningful change.

Women Leading the Way in Malawi

All of MicroLoan Foundation Malawi’s clients are women, most of whom lack access to formal financial institutions. In a country where commercial banks tend to favor men and urban enterprises, this women-first model is intentional. It recognizes that investing in women borrowers contributes to improved household well-being. Women typically demonstrate higher loan repayment rates and contribute more of their income to household needs and prioritize their children’s education and health.

The foundation pairs small, sustainable loans with extensive business and financial literacy training. Every client receives personalized guidance from a loan and training officer, who supports an average of 419 clients. With an average loan size of just £75, women gain the tools to begin a path out of poverty. In addition to financial support, the foundation encourages peer-to-peer mentoring within loan groups.

These networks provide social support and shared learning, allowing women to exchange advice and build confidence as entrepreneurs. Many clients launch small businesses ranging from tailoring to food vending, generating consistent income and expanding their community influence. The ripple effect often extends beyond financial improvement, with women gaining leadership roles in local cooperatives or village committees. These changes contribute to shifting perceptions around gender roles and create new opportunities for future generations.

From Farming to Financial Freedom in Malawi

Many of MicroLoan’s clients are smallholder farmers whose livelihoods are vulnerable to climate shocks and market instability. To support them, the foundation offers agricultural and irrigation loans, allowing women to invest in farming inputs, equipment and resilience. The results include increased crop yields and higher incomes, which in turn support better nutrition, education access—especially for daughters—and long-term financial stability. Since 2022, the foundation has also scaled up digital literacy by training clients across all branches to use mobile money platforms. By the end of 2024, more than 85% of loan repayments and 30% of disbursements were processed via mobile money. This shift helps improve financial control and safety for rural women.

Toward Long-Term Impact

Microfinance continues to support economic participation in underserved communities. In Malawi, targeted lending and training are equipping women with tools to improve household stability and contribute to local development. As MicroLoan Foundation Malawi expands its reach, its model offers insights for addressing economic exclusion through scalable, community-based solutions. Long-term success potentially depends on partnerships that extend beyond lending—such as linking women entrepreneurs to markets, improving access to insurance and integrating climate-resilience training. These additions could enhance economic security and help ensure that microfinance remains responsive to evolving local needs.

– Linnéa Matlack

Linnéa is based in Boston, MA, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

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JazzCash: How Fintech Innovations in Pakistan Reduce Poverty

JazzCashPakistan faces significant economic challenges, with a substantial portion of its population living in poverty. As of 2024, the poverty rate stood at 25.3%, marking a sharp increase from the previous year and adding approximately 13 million people to the impoverished population. Financial exclusion exacerbates this issue, particularly among women. In 2021, only 13% of women had access to formal bank accounts compared to 34% of men, highlighting a significant gender gap in financial inclusion. ​

JazzCash’s Role in Financial Inclusion

With 44.4 million customers, JazzCash stands as one of Pakistan’s largest digital financial services platforms. Launched in 2012 by the Pakistani mobile operator Jazz, JazzCash has played a pivotal role in digitalizing Pakistan’s economy, promoting financial inclusion, expanding economic participation and reducing poverty.

Through partnerships with institutions such as the United Nations (U.N.) Women and the Sindh Flood Emergency Rehabilitation Project, JazzCash has introduced microloans, mobile banking and digital finance solutions that support economic activity and empower underserved communities. By leveraging fintech innovations, JazzCash provides secure, efficient and accessible financial services to millions of Pakistanis who previously lacked access to banking.

Here are four key JazzCash initiatives that demonstrate how fintech innovations in Pakistan reduce poverty through economic growth and financial inclusion:

Empowering Women Through Digital Finance

A 2022 partnership with U.N. Women enabled JazzCash to support 10,000 women micro-entrepreneurs by providing mobile wallets, free SIMs, data, calls and SMS bundles by 2025. In addition to digital tools, the initiative offers financial literacy training, ensuring that women gain the knowledge and confidence to effectively use fintech services for business growth and financial independence. With women making up only 21% of Pakistan’s workforce, increasing their participation in the economy is essential for both gender equality and overall economic growth.

The initiative aligns with U.N. Sustainable Development Goal 5 (Gender Equality) and fosters broader poverty reduction by expanding economic opportunities for women. In November 2024, JazzCash announced plans to expand its reach, setting a target to increase the number of women-led businesses using JazzCash from 100,000 to 300,000 by 2027. By integrating women into the digital economy, JazzCash helps close the financial gender gap and provides greater economic independence for female entrepreneurs.

Supporting Disaster Relief Through Fintech

The Sindh Flood Emergency Rehabilitation Project (SFERP), a collaboration between JazzCash and the Government of Sindh, has helped deliver financial assistance to families affected by the 2022 and 2024 floods. As of May 2024, JazzCash has disbursed PKR 2 billion to flood-affected families, with a goal of reaching PKR 15 billion and assisting 1 million households. Additionally, 80,000 new mobile wallet accounts have been created, ensuring that 45% of account holders are women. Traditional relief programs often rely on cash-based assistance, which can lead to delays, inefficiencies and security risks. By offering direct digital transfers, JazzCash provides a more inclusive, transparent and secure alternative, enabling families to rebuild independently and participate in the economy after disasters.

Expanding Social Protection Through Digital Payments

In February 2024, JazzCash became a key partner in the Benazir Income Support Program (BISP), Pakistan’s largest poverty reduction initiative. BISP provides unconditional cash transfers to underserved communities, including 9 million women, serving as a critical social safety net for Pakistan’s most vulnerable populations. JazzCash’s digital disbursement system ensures secure and efficient delivery of PKR 78 billion in cash payments to 1.3 million women by the end of 2025. By November 2024, JazzCash had already successfully transferred PKR 15 billion, demonstrating the effectiveness of fintech in expanding financial accessibility. Beyond facilitating direct aid, this initiative promotes long-term financial inclusion, encouraging women to open digital bank accounts, save money and engage in economic activities that lead to greater financial independence.

Microfinance and Entrepreneurship

JazzCash continues to promote economic inclusion through microfinance, enabling entrepreneurs and small businesses to access capital, process digital payments and expand their operations. Small business owners, particularly in rural and underserved communities, often face significant barriers to accessing credit and banking services. The organization’s microfinance solutions provide secure and efficient financial services, allowing entrepreneurs to scale their businesses, create jobs and contribute to economic growth.

Looking Ahead: The Future of Fintech in Pakistan

As fintech adoption expands, JazzCash remains committed to bridging financial gaps and empowering underserved communities. CEO Aamir Ibrahim has set a target to increase the female customer base from 30% to 50%, ensuring that women gain equal access to financial tools. With the continued integration of financial services into daily transactions, JazzCash is shaping a more inclusive economy where digital finance drives economic participation and poverty reduction in Pakistan.

Expanding financial literacy programs—such as those introduced through the U.N. Women partnership—could be essential in helping more Pakistanis navigate digital finance effectively. By leveraging fintech for economic empowerment, JazzCash is paving the way for sustainable economic growth and greater financial inclusion across Pakistan.

– Oliver Tanner

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

Photo: Flickr