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Archive for category: Global Poverty

Key articles and information on global poverty.

Advocacy, Development, Global Health, Global Poverty, Health

How a New Program Could Reconnect the Supply Chain

When Communication Really is Key; How a New Program Could Reconnect the Supply Chain and Keep Health Care Clinics Stocked
According to the World Health Organization (WHO), out of the close to the 1 million health centers in the developing world 40 percent of them are stocked out of essential supplies or medications.

In some countries, people walk three days to reach the nearest health clinic only to learn that they are out of stock of their medication. At the same time, health workers admit that they have life saving medications gathering dust and expiring on their shelves because their patients do not need them.

Reliefwatch is a platform for heath care organizations in the developing world to track the supplies in clinics and pharmacies. All clinics need to partake in Reliefwatch is a basic cellphone, which most clinic workers already own. The program involves no new hardware or installations and because all it requires is workers to punch in their inventory numbers into the cellphone, the training process is fast and simple.

Reliefwatch’s method is simple. An automatic call is sent to participating clinics whose staff enter their supply and medication inventories when prompted (Reliefwatch uses multilingual support systems). All the collected data is stored in their cloud system making it available in real-time anywhere in the world.

The information collected through Reliefwatch allows suppliers and NGOs to more accurately distribute medical supplies and medications. So instead of blindly shipping out supplies to clinics every three weeks, suppliers can effectively re-stock clinics based on their needs.

Daniel Yu, the founder of Reliefwatch, says his nonprofit has reduced stock-outs to 10 percent of current levels. Suppliers are more aware of which clinics need which drugs and facilities that have excess items can give them to clinics in need of them.

Reconnecting the supply-chain has a powerful effect. Suppliers can feel confident that their provisions are reaching places that need them, clinics and health care workers can adequately serve their patients and patients can depend on their medication being available when they need it.

– Brittney Dimond

 

Sources: Next City, Relief Watch
Photo: Flickr

September 27, 2015
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2015-09-27 14:50:372024-06-05 02:36:34How a New Program Could Reconnect the Supply Chain
Development, Education, Global Poverty

Kenyan Student Wins Student of the Year

Kenyan Student Wins ‘Outstanding BTEC International Student of the Year 2015’ in London
In 2014 George Benson Lyimo was just a student trying to earn his Business Technology and Education Council (BTEC) degree in business. Now in 2015 he is BTEC’s ‘Outstanding International Student of the Year.’

In 2012 Lyimo left his home in Tanzania to go to Braeside High School in Nairobi, Kenya. Braeside—a school which uses the British system of education—provides a safe place for eager students all over Africa to pursue their goals. Whereas many African youth are deterred by violence and warfare from going to school—Braeside provides a bus system to safely transport students to and from campus.

At Braeside Lyimo flew under the radar. One teacher recalls him being—“quite a shy character.” Nevertheless his potential shone in and out of the classroom.

Despite his humility Lyimo has accomplished much to be proud of. Self-taught in the language of computers—Lyimo launched his own website called Texeer which is now a worldwide social networking platform. He also volunteers in Braeside’s IT department even though he has no formal training and was able to provide internet for the student body when the school’s connectivity failed.

In July 2015 Lyimo was formally recognized for his accomplishments at the fifth annual BTEC Awards. The ceremony took place in London in front of an audience that included teachers, employers and even Members of Parliament.

The BTEC Awards acknowledge students, teachers and apprentices for outstanding performance in their particular vocational field. Recipients are nominated by their teachers and colleagues. This year BTEC received more than 800 nominations.

The judges picked Lyimo because of his passion and devotion to education and helping others. “Winning this award means a lot to me.” He says. “Firstly it kind of builds up my confidence and my belief system that I can build something great that other people can use in their daily life. I want to give back to the world. I want to make the world a better place.”

In addition to all of his technological hobbies Lyimo organizes annual charity events which raise funds to send Kenyan children to school. This is especially significant in Kenya where enrollment rates are extremely low.

Enrollment for boys and girls in secondary school in Kenya is 51 and 48 percent respectively—but attendance drops down to 39 and 41 percent. Compare this to the U.S. where enrollment among boys and girls in secondary school is 88 and 90 percent respectively. It is also important to take into account when comparing these numbers that unlike the U.S.—education is universally free in Kenya.

This is why young students like Lyimo are truly making the world a better place. Not only does he help other children achieve their dreams by providing access to education but perhaps more importantly by being a role model for those who need motivation in the face of adversity.

Lyimo graduated Braeside with triple star distinction—the highest accolade in the BTEC degree program. Like past recipients of BTEC ‘Outstanding Student’ Awards Lyimo will continue on his career path pursuing an advanced degree in Business and Computing at Huddersfield University in England.

– Celestina Radogno

Sources: Braeside School, BTEC 1, BTEC 2, Standard Digital News, UNICEF 1, UNICEF 2
Photo: Flickr

September 27, 2015
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2015-09-27 09:34:302024-05-27 09:27:41Kenyan Student Wins Student of the Year
Activism, Development, Global Poverty

Richest Man in Africa Combats Poverty Through Agriculture

Richest_Man_in_Africa
Aliko Dangote, a Nigerian billionaire, is nominated as Africa’s richest man on the FORBES World’s Billionaires list. He takes advantage of the advanced natural condition in Nigeria, such as plenty of agricultural land to develop the economy of commercial agriculture in Nigeria.

Aliko Dangote created the Dangote Group, a conglomerate mainly offering agricultural products, such as cement, sugar, salt and flour. Commercial agriculture has become one of the most important branches of Africa’s economy.

In recent years, Dangote keep investing in the land in Africa to expand his agricultural business and to create profits in Nigeria.

“I can remember that when I was in primary school, I would go and buy cartons of sweets (sugar boxes) and I would start selling them just to make money. I was so interested in business, even at that time,” said Dangote.

From 1997 to 2015, Dangote developed the Dangote Group from a small trading firm into a multi-trillion Naira conglomerate with international operations located in Benin, Ghana, Nigeria, and Togo.

Agricultural commodities are the main products in the Dangote Group. It has covered food processing, cement manufacturing and freight. Moreover, it dominates the sugar market in Nigeria and becomes the major supplier to domestic soft drink companies, breweries and confectioners.

In addition, Dangote Group also owns salt factories and flour mills; it imports rice, fish, pasta, cement and fertilizer and exports cotton, cashew nuts, cocoa, sesame seed and ginger to several countries.

With the current achievement, Dangote is still expanding his Agricultural business in Africa lands. Recently, Dangote invested $500 million in cement plants in Ethiopia and is building other plants in Kenya, Niger and Congo.

Moreover, Dangote intends to invest in Malawi, one of the poorest countries in the world. The majority of people in Malawi earn less than $1 per day. Foreign donors and Tobacco exports constitute the main national income. Before this investment, he has built a South African cement manufacturer, Sephaku Cement, and a cement plant in Zambia.

“His visit to Malawi will inspire both private and public sectors on how he has succeeded in his businesses”, said Joseph Mwanamvekha, Malawi’s Minister of Industry and Trade.

Facing the success of an agricultural business, Dangote said that, “Let me tell you this and I want to really emphasize it … nothing is going to help Nigeria like Nigerians bringing back their money. If you give me $5 billion today, I will invest everything here in Nigeria. Let us put our heads together and work.”

As the richest man in Africa, Dangote combats poverty in Nigeria by developing the economy of commercial agriculture.

– Shengyu Wang

Sources: Forbes, Forbes 2
Photo: Google Images

September 27, 2015
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2015-09-27 01:30:172020-06-29 17:50:53Richest Man in Africa Combats Poverty Through Agriculture
Development, Economy, Global Poverty

Colombian Farmers Expand Their Markets

Colombian Small-holder Farmers Expand their Markets
Whoever uttered the phrase “it’s not what you know, it’s who you know” wasn’t kidding. In today’s times, connections are key, and for Colombians trying to make a living in farm-based agriculture, the size of your market makes a significant impact on your income.

In fact, many challenges exist for small-holder farmers in Colombia. Hindrances such as low productivity, distorted information about pricing and selling prospects, and limited marketing access all remain obstacles for this group of farmers who end up selling their goods at open-air markets where there is more competition.

This automatically decreases a seller’s profits, furthering a cycle that seems inescapable.

Being a small-holder farmer can prove to be a difficult existence, at times feeling closed off from the evolving international markets of the world.

Other setbacks faced by farmers include selling through intermediaries, steep transaction costs to reach distant markets, and finally, a lack of means to produce the “volume, quality, and timely delivery” which large agricultural producers are able to generate.

Ultimately, the inability to expand and grow has contributed to poverty in this rural sector.

However, significant strides have been taken for those who fall under this title. An article from the World Bank addresses the solutions underway to improve the livelihoods of these farmers.

“In an effort to support Colombia’s smallholder producers to build entrepreneurship and compete more effectively, the Rural Productive Partnerships Project has been addressing the above-mentioned challenges by establishing, strengthening, and promoting productive alliances between rural producer organizations and private agribusinesses.”

Since the Rural Productive Partnership Project’s launch in 2002, many groups have received support through a process where partnerships are formed by competitive bidding partnered with an independent evaluation procedure. Today, this program continues to flourish and build from where it started.

The World Bank describes the program’s goal as one which involves keeping “production, sales and productivity” up through “investment grants, technical assistance and business development training.”

Aside from financial assistance, this project also seeks to dispel inequality however it can by reaching people who may have been neglected within the system, such as women, indigenous people and Afro-Colombians.

Colombia’s Ministry of Agriculture and Rural Development (MADR) reports that between 2002-2014 more than 820 successful partnerships have been formed helping 55,000 households, with 72 percent of the productive partnerships continuing to work together after the conclusion of the program.

With the second phase of the program ending in June 2015, targets have been reached within the project with more than 9,900 female-headed households benefiting in the first phase, and more than 9,250 indigenous peoples and Afro-Colombian households receiving assistance.

These successes have not only helped one small sector of farmers—but have reached far-away consumers and provided support for the vulnerable who live in Colombia, ultimately endeavoring to keep both their community and the world’s economy thriving.

– Nikki Schaffer

Sources: World Bank, YouTube
Photo: Google Images

September 27, 2015
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Activism, Advocacy, Global Poverty

Team Africa Rising: The Opportunity For Unity

Team Africa Rising: The Opportunity For Unity
This month, five Rwandan cyclists from Team Africa Rising are set to compete in the UCI Road World Championships in Richmond, Virginia. The international competition is set to take place from Sept. 19 – 27.

Team Africa Rising, formally called Team Rwanda, is comprised of professional cyclists who often serve as the world’s informal ambassadors to Rwanda and other conflict-stricken nations. Team Rwanda was founded in 2006 by American cyclist Jock Boyer in order to spread the sport of cycling and unify countries under its name.

Team Africa Rising is now comprised of over 25 of the best cyclists from Rwanda, Ethiopia and Eritrea. For these athletes, cycling can serve as a form of therapy to deal with their difficult pasts.

The team has also given African athletes the chance to compete at an international level, therefore granting them additional opportunities for sponsorship, equipment and more. One of the cyclists, Nathan Byukusenge, has qualified to compete in the 2016 Rio Olympics.

The cyclists have captured attention from the international community, as the subjects of a documentary entitled “Rising From Ashes” and the book “Land of Second Chances.”

Cycling teams provide a common, positive cause for members of the host countries to support. Team Africa Rising’s participation in the world championship provides a collective source of pride and excitement, particularly for the citizens of Rwanda.

According to Kimberly Coats, director of logistics for Team Africa Rising, the team represents unity for the country.

“The team is made up of people from both sides [of the 1994 genocide,]” she was quoted in the Richmond Times Dispatch. “But today we’re all Rwandans and it’s really started to develop this national unity, this national pride. This team is a thing for the country to rally around.”

For the past 21 years, Rwanda has focused on healing itself from the historic genocide and growing together as one Rwandan society. One of the major struggles in developing in the wake of such a mass atrocity has been in providing the international community another way to look at the country.

“You say Rwanda, you think genocide. They want you to say Rwanda (and) think cycling,” Coats said. “It’s going to take time, but it’s definitely there. We do a lot of bike tours, a lot of people come visit the team and the team has been goodwill ambassadors to show the world that Rwanda is a safe place, that the country has reconciled and that there’s peace.”

– Arin Kerstein

Sources: The Guardian, Richmond Times Dispatch, Team Africa Rising, World Bicycle Relief
Photo: Google Images

September 26, 2015
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2015-09-26 01:30:512024-12-13 18:05:00Team Africa Rising: The Opportunity For Unity
Development, Global Poverty

Botswana Unveils Prepaid Electricity App

Botswana Unveils Electricity Payment App
Access to reliable electricity is necessary for life in the modern world, and countless studies have shown that increased availability of electricity leads to economic increases, longer life expectancies, and in general, a higher quality of life. While many developing countries are increasing their electrical infrastructures, millions across the world are still energy deficient.

Even with access to electrical grids, many do not have the funds to pay for power or are in such remote locations that payment becomes a burden. The African nation of Botswana faces these issues but has recently rolled out a solution.

A payment company called Botswana Post has just launched an electricity app for Android users that allows them to buy prepaid amounts of electricity for low costs and to pay existing balances. Eighty percent of mobile customers in Botswana use the Android mobile operating system.

The electricity app also allows for direct user contact with the Botswana Power Corporation for the purpose of repairs and electrical installment. Botswana Post also provides similar services for many of the major banks across the country, Western Union, Botswana Telecommunications, and hopes to add gas and broadband payment services soon.

The app is yet another marker of Africa’s rapid modernization and potential for progress. It comes at a time when energy is not only becoming more and more available, but is now easier to maintain, and cheaper to acquire.

The simplicity of obtaining and keeping electricity that the app presents will surely have a positive impact across the country and should correlate to greater economic output and incomes for citizens who had, in the past, been quite literally in the dark.

– Joe Kitaj

Sources: Botswana Post, Footprint to Africa
Photo: Google Images

September 26, 2015
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2015-09-26 01:30:352020-06-29 17:56:32Botswana Unveils Prepaid Electricity App
Activism, Advocacy, Global Poverty

How Panera Bread Fights World Poverty

How Panera Bread Fights World Poverty
Panera Bread is known for its superb soups, salads and bakery items that might feed our appetites quite often. But Panera Bread has another, lesser-known side to their business. As one of the United States’ and Canada’s biggest food companies, Panera Bread also works to serve the less fortunate around the world.

The company previously enacted a ‘pay what you like’ method of paying to help those unable to pay the full price for food to have something to eat. The ‘pay what you like’ method allowed diners to pay more or less than $5.89 for their chili.

The purpose of this program was to encourage their customers to use what they were not paying to donate to charities and to provide food to those unable to pay. The method is still being used in locations such as Chicago, Illinois and Portland, Oregon. Other restaurants that have stopped using it are currently searching for new ways to support those suffering from hunger.

Another way Panera Bread gives back is through their Panera Cares Community Cafes. In the United States, 17 million homes are considered food insecure and 16 million children, meaning one in five children, do not have the means to receive proper nutrition every day. In these nonprofits locations, Panera Bread is willing to serve anyone for free. The aim of this project is to end hunger throughout the country.

In 2013, Panera Bread’s CEO demonstrated a style of living to promote hunger awareness. For one month, Ron Shaich collaborated with the Supplemental Nutrition Assistance Program to enact a lifestyle to live on $4.50 a day to create awareness for those in need, even though he normally makes roughly 3 million a year.

To put this into perspective, $4.50 is the average cost of a McDonald’s Mighty Kids Meal. Ron Shaich noted that although he was buying foods to keep him full, he continuously missed out on the healthy foods that matter, like meat, vegetables and fruits. He also stated how eye-opening of an experience it was for him and how impactful it will be on his efforts of putting an end to hunger.

Panera Bread continues to help fight poverty by continuing to give back to their communities through programs like the Day-End Dough-Nation and In-Kind Donations, which provide unsold bakery items to hunger relief agencies. Panera Cares operates in multiple cities throughout the US and is continuously creating innovative ideas to end world hunger.

– Julia Hettiger

Sources: Time, CNBC, Panera Bread
Photo: Google Images

September 26, 2015
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2015-09-26 01:30:332024-06-04 04:33:50How Panera Bread Fights World Poverty
Aid, Aid Effectiveness & Reform, Global Poverty, Humanitarian Aid

Voucher Programs: Way to Transfer Humanitarian Dollars

Voucher Programs: A Better Way to Transfer Humanitarian Dollars?
When it comes to helping the world’s poor, sometimes questions come up that the average person might never have considered.

Once there is an organization or a group that is willing to provide help, how will they do it? What does “providing resources” mean? How are “resources” defined?

There’re a few different ways for aid to be brought in the direct transfer of goods, such as food, clothing and other necessities, from humanitarian groups to the people in need.

However, there are also the methods of providing the impoverished with cash so that they can purchase the goods they deem necessary for themselves.

As Owen Barder, chair of the High Level Panel on Humanitarian Cash Transfers puts out, “A good starting point for our work is the acknowledgment that people are a good judge of what they need, and we should always think twice before putting our judgment ahead of theirs.”

Providing cash-based aid also has the potential to stimulate local economies, as recipients spend the money at small businesses and help their communities to thrive.

According to a study in the Journal of Development Effectiveness published last year, direct provision of cash is the cheapest way to bring aid, with costs coming to $2.99 per transfer. To put this in perspective, providing food directly came out to $11.46 per transfer because of all of the costs to store, package and distribute the food.

To some, it might seem unnecessarily expensive to provide food and other materials directly to those in need. To others, the idea of giving destitute, uneducated people a set sum of cash to spend whatever way they would like doesn’t make much sense, either.voucher_programs

Even assuming every recipient is perfectly ethical, is it safe to assume all of those in need have enough knowledge of nutrition and savvy spending?

Voucher programs, theoretically, are sort of a happy medium between the benefits of cash transfer and direct resource provision. Only slightly more expensive than direct cash at $3.27 per transfer, in the study, vouchers are like certificates redeemable for specific items, usually food.

Vouchers have the benefit of stimulating local economies without the corruption and security risk present with cash transfers. Voucher programs allow those in need to receive the most nutritious food available without the expense associated with food aid.

Vouchers are not the ultimate, game-ending form of humanitarian aid. Different situations will call for different ways to provide aid. (For example, when providing immunizations, it makes far more sense to simply provide the immunizations themselves en masse, rather than money for each individual to get immunized.)

However, it seems that this form of help is relatively underrated when compared to food and cash aid.

They can be used locally, they are relatively cheap to provide and when they are used at events such as voucher fairs, they offer recipients freedom to spend the aid on what they choose, within a specific context of essential items. Fairs like these can even help to address issues like gender inequality.

Said one woman at a voucher fair held by UNICEF in the Democratic Republic of Congo, “Before we came here, my husband and I discussed what we need. In the past, he did what he wanted with our money, but here it’s me who takes the final decision.”

Paul Harvey and Sarah Bailey said it well in a brief for The Overseas Development Institute (ODI). “Humanitarian organizations provide assistance based on agreed principles and standards. At its heart is the principle of humanity – the universal impulse to seek assistance and to provide it to those in need.”

– Emily Dieckman

Sources: CGDEV, Europa , ODI, Research Gate, TUFTS, UNICEF
Photo: Flickr1, Flickr2

September 26, 2015
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2015-09-26 01:30:152024-12-13 18:05:05Voucher Programs: Way to Transfer Humanitarian Dollars
Food Security, Global Poverty, Poverty Reduction

Benefitting from the Green Revolution in Africa

 

green_revolution_in_africa
A Green Revolution is the process of renovating agricultural practices, techniques and equipment that results in more prosperous and successful agricultural production. The first Green Revolution occurred in Mexico in the 1940s and the agricultural modifications used to spur the revolution spread worldwide in the following decades.

Green Revolutions are made possible through mechanized equipment and the use of irrigation and fertilization. Prior to many Green Revolutions countries such as Mexico and the United States were not producing enough crops to feed their citizens so they were forced to import products.

In the 1940s, the U.S. imported more than half of its wheat. However, after undergoing their Green Revolution they were able to produce a significantly greater supply and were not only able to stop importing wheat but also became wheat exporters. Cutting the cost of importing and generating a profit from exporting.

While Green Revolutions were sprouting up across the world, Africa became one area that was largely excluded from the benefits of revolutionizing agriculture. The lack of a Green Revolution in Africa can be directly tied to the overwhelming level of poverty throughout much of the African continent and especially in Sub-Saharan Africa.

Roughly 400 million people in Africa live in poverty and the majority of them live on farms. African farmers face poor soil, unreliable water supplies, restricted access to markets, insufficient access to finance and credit compounded by little government support.

Without a shift in the farming techniques and tools used throughout African countries, farmers will continue to struggle to grow enough crops to earn a living wage or feed their fellow countrymen.

Some countries are starting to show signs of Green Revolutions and there are many organizations, such as AGRA, that are working to assist in this process; but with so many people lacking food and an adequate income, an agricultural boost could be a major step towards decreasing the striking poverty levels throughout Africa.

AGRA is an organization that has developed and implemented several programs designed specifically to increase African agriculture. They currently work within 17 different African countries with programs to improve soil health, market access and policies and advocacy for farmers.

A Green Revolution in Africa could allow countries to gain economic stability, decrease food insecurity and empower farmers to not only feed their own countries but the world. Turning a country from an importer to an exporter can unlock potential and generate incredible economic progress.

– Brittney Dimond

Sources: AGRA, About, Huff Post,
Photo: thedailyeye

September 25, 2015
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2015-09-25 01:30:562020-06-29 18:06:20Benefitting from the Green Revolution in Africa
Global Poverty

The Growth of Mobile Money in Africa

The Growth of Mobile Money in Africa
Millions of Africans utilize their cell phones to manage their finances. Mobile money in Africa is currently in use in 36 of the 47 countries in Sub-Saharan Africa and is used prominently throughout East Africa.

Mobile financial services (MFS) have become increasingly popular across the continent for many reasons. Many economists cite safety, efficiency, transparency, and ease of the services as reasons for the increased usage.

MFS include more than just cash transfers but have also expanded to utility bills, shopping, investment, taxes, and more. The services have also allowed easier cash flow across borders and between family members in times of crisis, which economists have cited as major motivators in service usage in the region, according to a report in All Africa.

One of the most prominent mobile money services in the region, M-PESA, was developed in Kenya. Since 2007, Safaricom and Vodafone’s M-PESA application has allowed users in Kenya and beyond to store funds on their mobile devices in order to transfer funds to other users, pay bills, and make other purchases.

The country now tops the global charts, with 58 percent of its adults having mobile money accounts. Former Safaricom CEO Michael Joseph noted that mobile technology has been transformative for the informal business sector, which comprises about 70 percent of jobs in Kenya. This increase has been instrumental in helping surge GDP rates throughout the developing world.

The latest mobile money statistics indicate that users in East Africa have largely continued to shift GDP to be transferred via various mobile money platforms. According to All Africa, mobile transactions amounted to $45.75 billion for East Africa, comprising 32 percent of the region’s combined GDP.

This is a significant increase from the $4.86 billion transacted via mobile services in 2009, which only comprised 3.4 percent of the region’s GDP. In Zimbabwe, 45 percent of the country’s GDP is transacted via MFS.

In its 2014 State of the Industry Report, the Groupe Speciale Mobile Association (GSMA) stated that MFS are ingrained in the majority of developing markets, with over 250 mobile money services available across 89 countries.

In 2014, almost 300 million users were registered for mobile money accounts. 2014 marked 16 markets with more mobile money accounts than regular bank accounts, “indicating that mobile money remains a key enabler of financial inclusion.” Furthermore, as smartphone access increases, the GSMA expects MFS usage to continue to increase rapidly.

Because of the prevalence of MFS through non-bank providers throughout the region, government regulators are passing guidelines for mobile money service provision in order to allow better financial inclusion for all members of society.

While competition has grown steadily between bank and non-bank mobile money service providers, regulations like these aim to maximize the reach of the services to the widest audience possible. The GSMA report marks that 47 of the 89 markets with mobile banking have regulations to allow both banks and non-banking services to sustainably provide for their markets.

The GSMA outlined in its report that there are still obstacles in helping mobile money services achieve their full potential in the region. The report states, “Regulatory barriers, low levels of investment and lack of industry collaboration limit the ability for mobile money to reach scale.”

Despite these obstacles, economists widely expect mobile money to continue to grow in order to meet eager markets across the continent.

– Arin Kerstein

Sources: Africa Focus, All Africa, CommsMEA, GSMA, IT News Africa
Photo: Flickr

September 25, 2015
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