Archive for category: Global Poverty

Key articles and information on global poverty.

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7 Key Facts About Healthcare in Colombia

Healthcare in ColombiaColombia’s healthcare system is not perfect but it also far from inadequate. Located in the northernmost part of South America, Colombia has estimable healthcare provision for the country’s people. With both public and private insurance plans, reputable facilities and well-equipped healthcare providers, Colombia sets an example of what sufficient healthcare looks like in a developing country. To understand this better, it is necessary to know some key facts about healthcare in Colombia.

7 Facts About Healthcare in Colombia

  1. Healthcare in Colombia ranked 22nd out of 191 healthcare systems in overall efficiency, according to the World Health Organization. For perspective, the United States, Australia, Canada and Germany ranked 37th, 32nd, 30th and 25th respectively.
  2. Colombia’s healthcare system covers more than 95% of its population.
  3. Indigenous people are considered a high-risk population due to insufficient access to healthcare in indigenous communities in Colombia. Specifically, they are more vulnerable to COVID-19 due to this lack of healthcare access and significant tourist activities in indigenous regions increase the risk of spread. Robinson López, Colombian leader and coordinator for Coordinadora de las Organizaciones Indígenas de la Cuenca Amazónica (COICA), said in March 2020 that tourism in indigenous territories in Latin America should stop immediately to curb the spread of COVID-19.
  4. There are inequities in the utilization of reproductive healthcare by ethnic women in Colombia, according to a study. Self-identified indigenous women and African-descendant women in the study had considerably less likelihood of having an adequate amount of prenatal and postpartum care.
  5. The Juanfe Foundation is a Colombian-based organization that promotes the physical, emotional and mental health of vulnerable and impoverished adolescent mothers and their children. So far, the organization has supported more than 250,000 people. The Juan Felipe Medical Center served 204,063 individuals — 20% of the population in Cartagena, Colombia. The organization also saved the lives of 4,449 infants through its Crib Sponsoring Program.
  6. In 2019, four of the top 10 hospitals in Latin America were in Colombia and 23 of the top 55, according to América Economía.
  7. Colombia secured nine million doses of the COVID-19 vaccine from Johnson & Johnson in December 2020. Combined with the doses it will receive from Pfizer, AstraZeneca Plc, COVAX and other finalizing deals, Colombia will be able to vaccinate 35 million people within its population of 49.65 million, striding toward herd immunity.

Recognizing Colombia’s Healthcare System

Simultaneously recognizing the current inequities and challenges alongside the positives in Colombia’s healthcare system is the true key to understanding it and the individuals depending on it overall. Despite attention-worthy deficits, healthcare in Colombia stands out in Latin America and in the world as high quality, widespread and respectable. The country’s healthcare is contributing to the well-being of many and the future ahead looks promising.

– Claire Kirchner
Photo: Flickr

5 Facts About Foodborne Illnesses in Africa

Foodborne Illnesses in Africa
With approximately 41% of the African population experiencing poverty, access to food is a persistent struggle. Poor food quality often accompanies food scarcity and both can lead to foodborne illnesses. According to NPR, Africa has the highest per-capita rate of foodborne illnesses in the world. Here are five facts about foodborne illnesses in Africa.

5 Facts About Foodborne Illnesses in Africa

  1. Children are the most affected by foodborne illnesses. Children, especially under the age of five, are at an increased risk of contracting a foodborne illness.  Since their immune systems are not fully developed yet, it is also more difficult for children to fight off illnesses, particularly if they do not have access to high-quality health services.
  2. Lack of refrigeration is an underlying cause of foodborne illness. In rural villages in the Eastern Cape of Africa, many families do not have access to a refrigerator or electricity. As a result, they have to buy food daily to ensure that it does not perish. This becomes expensive, however, and is not sustainable for a low-income family. Therefore, many of these families resort to keeping food that would otherwise require refrigeration out in the open. Bacteria on food grows fastest in temperatures ranging from 40 to 140 degrees Fahrenheit, doubling about every 20 minutes. Given that average temperatures in Africa fall within that range, Africans who do not have the means to buy a refrigerator are more prone to developing foodborne illnesses.
  3. The transportation of food in Africa is also a significant factor. A majority of Africans get their food through informal markets. The food that arrives at these markets typically originates from smallholder farms, but the safety standards during transportation are not always strictly enforced. Food contamination can happen during food production, delivery and consumption. In Africa, where food often travels long distances in hot climates without adequate packaging, contamination is more likely.
  4. Many African governments do not possess the resources to regulate food safety risks. Since Africa suffers from hunger and malnutrition, governments place an emphasis on delivering as much food as possible to those lacking it. This sometimes leads to a greater focus on quantity than quality. During hunger crises, although governments deliver food in a widespread manner, it can cause more harm if the food is contaminated. Without the resources necessary to regulate food safety, many African governments rely on international organizations that provide policy guidance and training.
  5. Africa’s food system is becoming more industrialized. While diets in Africa used to be rich in grains, many diets now primarily contain vegetables, meat and dairy products. These foods are more likely to require refrigeration, increasing the likelihood of contamination. Additionally, as more diverse diets are incorporated, there is the threat of new illnesses emerging. Underfunded clinics often lack the knowledge and resources to adequately diagnose foodborne illnesses and the emergence of new illnesses may worsen the diagnosis process.

Looking Ahead

Despite having a high rate of foodborne illnesses, progress is being made in Africa. The African Union is working to implement a continent-wide food safety authority. The initiative is set to emerge in the next year and will focus on increasing food safety protocols in markets and factories.

An organization called Harvest Plus uses a food-based approach to tackle hunger and agricultural needs by adding micronutrients to food. Through a process called biofortification, farmers add vitamins and minerals to everyday crops to sustainably bridge the gap between agriculture and nutrition. By targeting vulnerable populations around the world, the organization ensures food security in a nutritious and safe manner. Harvest Plus is confident that with consistent efforts, 1 billion people can have access to biofortified foods by 2030.

– Sarah Frances
Photo: Flickr

Internet in Africa Is Helping The Poor Amid COVID-19

Internet in AfricaAfrica has become a hub for electronic expansion in recent years. For example, more and more of its business and financial transactions are being made from mobile devices. Further, new technology in sub-Saharan Africa has rapidly been developed. The region has identified the benefits and uses of new systems of finance and governing. However, even though technology has been a focal point for many sub-Saharan countries recently, Africa’s overall connection to the internet has remained at a low level. Now, COVID-19 poses new challenges to business and connection. For many, having reliable access to the internet in Africa may be the difference between staying above or below the poverty line amid COVID-19.

Access to the Internet in Africa

While technology has rapidly expanded in Africa in recent years, only 18% of the population has reliable internet access, and only one in 10 households are connected to the internet. Further, the majority of this percentage is in urban areas. The governments of African countries face significant challenges in bringing more access to the rural parts.

One of the biggest challenges in this task is the commitment from private companies. Until recently, most of the internet connectivity in Africa has been left up to the private sector. However, the lack of pre-existing infrastructure in Africa’s rural areas makes developing connectivity in these areas quite expensive. For this reason, most of the private companies have never taken the time to invest in these regions. This highlights how technology can sometimes appear to be making great changes to the world, but in reality, it is only helping those who can afford it or who are profitable to invest in. More attention must be paid to the remote and impoverished communities that are not benefiting from our technological advances as this system only deepens inequality.

COVID-19 and Interpersonal Connection

Today, this inequality is beginning to change. Now local governments in Africa are more seriously committed to providing reliable internet to their people. This comes at the most crucial time as the COVID-19 pandemic has created numerous problems for interpersonal connection. Having internet access is now more critical than ever for business, global affairs and education. All of these points are crucial in lifting people out of poverty.

Because of governments’ efforts, many organizations are coming to Africa looking to further increase connectivity. The TZ21 program is successfully bringing new technological devices to Zanzibar in Tanzania. The Alliance for Affordable Internet has also been raising large sums of funding to provide reliable internet access to citizens of Africa. This organization has organized a stakeholder coalition in Nigeria and several other countries to work with local governments with the goal of providing reliable internet for all.

Future Progress for Africa

Africa has made great progress, but it still remains the least connected continent in the world. The COVID-19 pandemic has shown how important it is to have internet in Africa. In addition, it also put pressure on local governments to find solutions for their citizens. Building back from this moment, Africa may choose to further invest in the infrastructure, skills, jobs, and policy to allow technology and global connectivity to flourish in Africa. All of these things would boost economies and social awareness all around Africa. It could potentially be the solution to many poverty-related problems.

– Jackson Bramhall
Photo: Flickr

Child Poverty in Russia

Child Poverty in RussiaWhile Russia is a very resource-rich country, it suffers from intense social inequality. The top 1% of the Russian population control 71% of the nation’s wealth. 13% of Russians are currently living in poverty. Unfortunately, the majority of people living in extreme poverty are children. 60% of those living below the poverty line in Russia are families with children. As a result of social inequality, child poverty in Russia continues to rise.  Currently, one in four Russian children lives below the poverty line.

Poverty in Russia

Russia is one of the world’s largest exporters of oil. As such, those that control the oil industry generate great wealth.  However, this leaves many others to suffer in poverty. The nation has a high unemployment rate, but people who have obtained employment often suffer as well. The minimum wage in Russia is among the lowest of all developed countries. The monthly minimum wage in Russia is 12,310 rubles, which is the equivalent of $196.

Additionally, 26% of Russian children live off of close to $150 per month. Child poverty in Russia is most prevalent in rural areas, as many do not have access to employment opportunities in the city. The majority of children living in poverty reside with their families. Most families have three children and are often unable to sustain themselves with their current income.

Aid in Russia

USAID has worked with the government to create programs and opportunities that aim to remedy child poverty in Russia and help foster the economy. Specifically, USAID has created a child welfare program for Russian children living in poverty. The program provided services that focused on reducing child abandonment and finding foster families for children without homes. Fortunately, this program has already increased family reunification by 33%, and there was an 85% increase of children finding foster families.

Various programs helped diversify the Russian economy and uplift struggling families. USAID has worked to increase the development of Russian small business sectors. Small businesses make up 12% of the economy, which is only one-fifth of what is found in other developed nations.

By 2024, Russia aims to reduce the poverty rate by 50%. Russia must work to decrease the extreme amounts of social inequality and provide more opportunities for people in rural areas to alleviate poverty. Additionally, an increase in minimum wage will allow families to sufficiently provide for themselves.

Many programs have been implemented to help reduce child poverty in Russia.  While substantial change has been made, the Russian government must continue to increase its efforts to uplift the economy and families struggling in poverty.

– Christopher McLean
Photo: Flickr

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Addressing Homelessness in Germany

Homelessness in Germany
Located in Central Europe, tourists visit Germany to enjoy its world-famous beer, flavorful bread and historic castles. However, despite Germany’s booming economy, the country suffers from a high rate of homelessness. According to the Federal Association for Assistance to Homeless People (BAGW), approximately 650,000 Germans currently do not own a home. Two German restaurants, Hofbraeu Berlin and Istanbul Kebap Pizza, as well as the nonprofit organizations, Rise Foundation e.V. and v. Bodelschwingh Foundation Bethel, strive to tackle homelessness in Germany by offering housing, food, job training, counseling and basic necessities to those living on the streets.

German Restaurants

Many restaurants in Germany have begun donating their food to the homeless population. However, two establishments called Istanbul Kebap Pizza and Hofbraeu Berlin stand out for engaging in charity work.

Located in Koblenz, Germany, Istanbul Kebap Pizza hands out complimentary food to homeless individuals who come in on Thursday evenings. The restaurant produces a surplus of leftover food at the end of the day, which guests gratefully consume. The homeless can enjoy a wide variety of Turkish cuisine, such as “doner, pizza and other meals.”

The Hofbraeu Berlin restaurant in Berlin, Germany used to attract thousands of tourists during peak seasons. However, after COVID-19 cases became rampant in Germany, the restaurant put a stop to dine-in eating. Now, the business offers a place for homeless people to relax and enjoy free gourmet meals and regular food. In addition to offering food, the restaurant’s continuation of public bathroom usage allows individuals to remain clean and sanitary. Non-profit organizations also frequent the restaurant to give professional guidance and warm garments to the guests.

Rise Foundation e.V.

The Rise Foundation e.V. began in 2018 and strives to eradicate homelessness in Germany by encouraging human connection and handing out food and basic necessities. With the help of volunteers, the organization cooks homemade vegetarian meals and heats up tea and coffee to provide the homeless with warm meals. Volunteers attempt to establish a relationship with homeless people to demonstrate compassion and respect. The foundation also hands out first aid kits, hygiene products, clothes and other basic necessities, as well as pamphlets on useful resources, such as where to find places to sleep, free healthcare services, professional guidance and recreational activities.

v. Bodelschwingh Foundation Bethel

v. Bodelschwingh Foundation Bethel was founded in 1867 with a mission to help elderly, unemployed, disabled and mentally ill individuals, as well as children and college students. More specifically, the organization aids the homeless in obtaining housing and finding self-autonomy. It does this by providing a place for the homeless to temporarily stay and assisting them in obtaining permanent housing.

Bethel Foundation volunteers also go to homeless communities and provide medical care, including counseling services for mental health issues and drug and alcohol abuse. Furthermore, the foundation teaches essential skills needed for securing a job and provides guidance on how to search for employment.

Overall, the efforts of German restaurants and nonprofit organizations help many homeless individuals obtain basic necessities and find their independence. As more entities join the fight against homelessness in Germany, the nation will hopefully see a decrease in the number of people living on the streets.

– Samantha Rodriguez-Silva
Photo: Wikimedia Commons

Examining the Farming Protests in India

Farming Protests in India
Nearly 150 million Indians rely on farming to make a living. The farming protests in India started when the Indian government passed new laws that could negatively affect small farmers, leading farmers to band together in protest.

The New Government Laws

Government involvement in agriculture, which has included a minimum price guarantee for certain crops, emerged to help India overcome the 1960s hunger crisis. A major drought that hit the country between 1966 and 1967 caused the hunger crisis. The Indian government set the food pricing guarantee in place in order to allow India to be able to feed itself with less support from other countries. These laws were in place until 2021.

This support guaranteed a minimum amount of money for certain produce, but roughly 60% of farmers felt that it was not enough anymore. In addition, many designated markets with governmental price protection have become corrupt with private sellers from larger corporations being able to lower food prices below the standard. This has forced smaller farmers to cut their guaranteed prices and take serious revenue losses.

In late 2020, the government passed three new bills known as The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, and The Essential Commodities (Amendment) Act, 2020. These bills have the intention to minimize government involvement in agriculture and further open up the market for private investors.

Supporters of the laws claim they will free farmers from government prices and allow them to be more independent. Farmers, however, fear that the loss of government involvement will leave them at the mercy of large corporations they cannot compete with.

The Protests

Protests against the proposed laws began outside of New Delhi on November 26, 2020. Farmers, many from the Sikh religious minority, demanded that the Indian government change the law. Sikhs have predominantly relied on agriculture since the government prices have taken effect. Protestors took action on December 20, 2020, taking down hundreds of telephone wires, protesting the fact that large companies such as Reliance industries and the Adani group were joining the large contract farming business.

On January 26, 2021, India’s Republic Day, farmers organized a 100 km tractor protest. The government tried to prevent the protest from happening, enacting laws to prevent the protest. Some states even stopped the sales of tractor fuel to help mitigate the situation. These efforts did not deter the protestors, who continued to march down the streets.

These protests have been extremely symbolic, demonstrating to the government the need to support the country’s struggling working/lower classes. But the protests soon became violent. Hundreds of farmers, some still on tractors, dismantled police barricades and charged police with traditional weapons. Police tossed tear gas at the crowd and online videos showed police beating protestors with batons. Reports determined that 300 officers experienced injury and one protestor died.

The Importance of the Farming Protests in India

The protestors show no sign of stopping until India’s government meets their demands for more government protection. The farming protests in India aim to promote equality.

– Claire Olmstead
Photo: Flickr

4 Facts About Healthcare in Ghana

Healthcare in Ghana
Healthcare in Ghana has many levels to it. There are three primary levels: national, regional and district. Within these, there are different types of providers: health posts, health centers/clinics, district hospitals, regional hospitals and tertiary hospitals. On average, Ghana spends 6% of its gross domestic product on healthcare, and the quality of healthcare varies by region. Here are four facts about healthcare in Ghana.

4 Facts About Healthcare in Ghana

  1. Ghana has a public insurance system. In 2003, Ghana made the switch from the “cash and carry” system to public insurance. The “cash and carry” health system required patients to pay for their treatments before receiving care. Because of this process, few people were able to afford treatment. In response, the government established the National Health Insurance Scheme (NHIS). This system provides wide coverage, covering 95% of the diseases that affect Ghana. The coverage includes treatment for malaria, respiratory diseases, diarrhea and more. Between 2006 and 2009, the proportion of the population registered to NHIS increased by 44%
  2. Child mortality rates have decreased. Data from 2019 showed that 50 out of 1000 babies die before the age of five. While this may appear unsettling at first, the twice as high a few decades earlier. In low-income communities, there is a higher risk of death because of limited access to healthcare. To help prevent this, the NHIS provides maternity care, including cesarean deliveries. In the 1990s, Dr. Ayaga Bawah began a study to provide healthcare in rural areas to see if it would decrease mortality rates. Between 1995 and 2005, the study showed that when qualified nurses were working in communities, there was an equal distribution of child mortality throughout the country, rather than mostly in rural communities.
  3. Access to health services has increased. In rural communities, health posts are the primary healthcare providers. A 2019 study found that 81.4% of the population had access to primary healthcare in Ghana, while 61.4% have access to secondary-level, and 14.3% to tertiary care. Despite these relatively high rates of accessibility, approximately 30% of the population has to travel far to access primary facilities or see a specialist. To increase access to services, Ghana’s president, Nana Akufo-Addo, stated in June 2020 that he intended to build 88 more district hospitals.
  4. More and more scientists are being trained. Throughout Africa, scientists are being trained to improve research and the dissemination of information. The World Economic Forum has pushed for research in programs such as Human Health and Heredity in Africa. This program is dedicated to helping local institutes manage the diseases and conditions that affect its area. Another group, H3-D, trains scientists in many African countries, including Ghana, to focus on conditions that are prevalent in Africa, such as malaria, tuberculosis and cardiovascular disease.

These four facts about healthcare in Ghana illuminate the progress that has been made, as well as the work that still needs to be done. While healthcare has improved, the government must take more steps to increase accessibility for all throughout the country. With a continued focus on healthcare, Ghana will hopefully continue to provide more communities with health services.

– Sarah Kirchner
Photo: Flickr

Why Countries Should Be Investing in Brazil

investing in BrazilThere are numerous reasons to invest in foreign aid in general. That can include partaking in growing the global economy, promoting international human rights and opening donor countries to potential investment returns. What makes Brazil a particularly good market to invest in is its promising role in the global economy. There are several reasons why investing in Brazil is beneficial.

COVID-19 Response

As of January 2021, Brazil has the third-most COVID-19 cases worldwide. The Brazilian economy was not in its best shape at the start of the pandemic because it has not fully recovered from the 2014-2015 recession. This made the economy vulnerable to precarious economic shocks that resulted in increased poverty, unemployment and small business fragility.

The COVID-19 pandemic has left countries like Brazil with possible lasting economic damages. Many emerging and developing countries rely heavily on foreign aid for financial and humanitarian support. Offering foreign aid to Brazil will not only help pave the way for a domestic post-COVID recovery but also alleviate some of the negative impacts of the pandemic through humanitarian benefits.

Diversified Opportunities in Emerging Markets

The Brazilian economy is classified as an emerging market. Emerging markets are economies that are transitioning into a developed economy. Since the launch of the MSCI Emerging Market (EM) Index in 1988, which measures portfolio performances of emerging markets, investing in emerging countries proved to create new and diversified opportunities outside of common markets.

Market Expansion and Economic Growth

Since 2016, Brazil has shown an increase in GDP growth with approximately a 1.3% increase. In 2020, Brazil fell back into recession because of COVID-19. However, Brazil’s economy displayed growth and has played an important role in the growth of the Latin American economy as it makes up 35% of the Latin American GDP. It is approximated that the Brazilian market reaches 900 million consumers in just the Americas.

On how quickly the Brazilian economy rebounded, Bloomberg reports boosted domestic demand and exports with a 9.47% rise in economic activity index from July to September of 2020 in comparison to the previous months.

As Brazil recovers from COVID-19’s economic impact, it leaves opportunity for foreign investors to take advantage of Brazil’s growing market, especially with its low interests. Some of Brazil’s profitable sectors include real estate and agricultural goods like coffee, sugar cane, corn and soybean. Participating in these sectors expands Brazil’s domestic market and hence the world market size.

Geographical Location

Especially for the United States, Brazil’s proximity allows easier trade. For other advantages, Brazil’s geographical properties for the agriculture sector also make its commodities attractive. Approximately 28.7% of land is used for agricultural production which makes up more than 4% of the annual Brazilian GDP. Following China, the United States and Australia, Brazil has the fourth-most amount of agricultural land.

Foreign Investment Returns

Encouraging enterprises to invest in foreign aid can ultimately result in great returns. A common type of foreign aid for these corporations is Foreign Direct Investment (FDI). Through FDIs, corporations can potentially gain lasting interests, multinational consumers and flexible production costs. This type of foreign aid also brings developing countries like Brazil innovative technology, investment strategies, jobs and infrastructure from investing corporations of developed nations.

Foreign investment is critical to developing and emerging markets. Investing in Brazil promotes development and sustainability and also benefits foreign investors greatly. Furthermore, foreign investment assists economic recovery following unforeseen economic shocks like that of the COVID-19 pandemic.

– Malala Raharisoa Lin
Photo: Flickr

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Addressing Mental Health in Armenia After Conflict

Mental Health in ArmeniaHundreds of thousands of civilians fled in search of safety when violence broke out in Nagorno-Karabakh on Sept. 27, 2020. Following these first violent clashes, organizations stepped up to provide humanitarian assistance for displaced civilians arriving in the capital Yerevan. The extensive damage to infrastructure and disruption of daily life, coupled with a harsh winter climate and COVID-19, will require help from the international aid community for many months to come. One area that this incoming aid will go to is mental health education and support. In 2019, the World Health Organization reported that one in five people in conflict-affected areas lives with a mental health issue. The longer a person lives with acute stress, anxiety or other mental health challenges, the more difficult it is for them to successfully secure basic needs. Aid groups are addressing the issue of mental health in Armenia with various programs.

Mental Health Support for Armenia

The Armenian Red Cross Society is providing humanitarian assistance to help people with basic necessities. This includes psychosocial support for returning soldiers and civilians. As of late December 2020, it had provided around 1,000 psychological services to wounded soldiers and their families.

The International Medical Corps, another emergency aid response group, is working with the Armenian Ministry of Health to assess current needs. In October 2020, the organization expressed its plans to provide training in psychological first aid for frontline healthcare workers. The organization will also provide mental health and psychosocial assistance to people who need it.

UNICEF Addresses Child Trauma

The UNICEF Armenia team and a local arts and music school called the Nexus Center for the Arts offer art and music-based support groups. These support groups give children and teenagers a chance to express themselves without having to talk. UNICEF reported testimonials of students who upon arriving were too afraid to open up but after participating in the support groups felt ready to talk about the trauma they had experienced. The groups also give students a chance to hang out, decompress and enjoy music in a comfortable and safe environment.

To help school teachers, UNICEF partnered with several civil society organizations to teach them how to address trauma in the classroom. UNICEF offered virtual lessons on trauma-informed teaching. The lessons gave 150 school psychologists and 900 public school teachers the skills to work in high-pressure situations and strategies to provide better psychological support to their students.

UNICEF Armenia also put together a psychological first aid guide. This guide has clear and concise information on how to respond to children in a mental health crisis. It emphasizes the importance of responding to children in an age-appropriate and individualized way.

The Increased Need for Mental Health Support in Armenia

Mental health in Armenia, especially following the conflict, is an issue that requires prioritization. The conflict and displacements have left 39,000 children out of school. The trauma caused by displacement has affected children in multiple ways. Ensuring the well-being of these children is a top priority for UNICEF and other organizations addressing mental health in Armenia. The hope is that these initiatives will combat the negative impacts of traumatic experiences in conflict-ridden areas like Nagorno-Karabakh.

– Caitlin Harjes
Photo: Flickr

Burkina Faso Compact II to Lift 8 Million Out of Poverty

Burkina Faso Compact II to Lift 8 Million Out of Poverty
Despite having one of the fastest-growing economies in Africa, the nation of Burkina Faso struggles with significant developmental challenges. One such challenge is a lack of adequate access to affordable electricity across the country, which the Burkina Faso Compact II will combat.

Electricity and the Economy

A lack of access to electricity ties to a lack of economic opportunity. When a country or area receives proper access to electrical grids and services, new businesses can open, existing businesses can operate on a higher level and jobs can emerge.

The Millennium Challenge Corporation’s (MCC) Burkina Faso Compact II is a program intended to address the nation’s electricity challenges to promote a healthy economy and lift 8 million people out of poverty.

Burkina Faso Compact II

Burkina Faso is one of the most impoverished nations in the world. In 2017, the Gross National Income per capita was $610. The majority of the impoverished also live in rural areas, with approximately 90% of impoverished households in Burkina Faso in rural parts of the country.

Although the nation has a high rate of poverty, it is home to one of Africa’s fastest-growing economies. In 2019, Burkina Faso’s GDP was growing at a rate of 6%. Experts believe the high concentration of poverty in rural areas is due to low rates of agricultural productivity, social isolation, underemployment and inadequate access to electricity. The recent improvement in the GDP growth rate is a result of the positive performances of the agricultural and mining sectors.

The Millenium Change Corporation’s Burkina Faso Compact II was signed on August 13, 2020. The Burkina Faso Compact II dedicates itself to connecting more of the country to electrical grids. The MCC has dedicated $450 million in grants and funding to the goal of widespread electricity.

MCC’s Compact Projects

In addition to MCC’s contribution, the Burkinabe government agreed to contribute $50 million to the compact projects. The program focuses on three smaller electricity projects: The Strengthening Electricity Sector Effectiveness Project, the Cost-Effective and Reliable Energy Supply Project and the Grid Development and Access Project. These projects will work together in order to help Burkina Faso increase access to electrical grids for all citizens.

Of the $450 million that will go toward improving addressing the issue of electricity, $210.7 million is for the Grid Development and Access Project alone. This project is particularly important to reaching the goal of widespread and accessible electricity nationwide. In the Grid Development and Access Project, the MCC hopes to aid in reducing power outages and increasing access to electrical services.

The Strengthening Electricity Sector Effectiveness Project and The Cost-Effective and Reliable Energy Supply Project received $46.9 million and $99.5 million respectively. The goal of the Strengthening Electricity Sector Effectiveness Project is to strengthen the electricity sector through important reforms, including building up the capacity of national utilities, the Ministry of Energy and regulators. The Cost-Effective Energy Supply Project aims to implement lower energy costs by introducing solar power, battery storage and improving electricity dispatch centers.

Burkina Faso Compact II Long-Term

This compact is the second project MCC has taken on in Burkina Faso. The first Burkina Faso Compact included $480 million to improve infrastructure, agriculture, girls’ education and water management. Since the completion of the project in 2014, Burkinabe government ministries have been maintaining what the project implemented. This shows great promise for the Burkina Faso Compact II.

In the long term, the Burkina Faso Compact II will ultimately improve living conditions and economic stability for more than 8 million people across Burkina Faso, leading to lower rates of poverty. Improving access and affordability of electricity is a positive step toward improving Burkina Faso’s economy.

– Maddi Miller
Photo: Flickr