Archive for category: Global Poverty

Key articles and information on global poverty.

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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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TEGAs: Empowering with The Girl Effect Program

TEGAsThe Girl Effect program reaches millions of girls in 20 countries across Africa and Asia, using multimedia approaches to give them the tools, knowledge and confidence to take control of their health, education and livelihoods. In a conversation with Authority Magazine, Jessica Posner Odede, CEO of Girl Effect, emphasized that the program works by meeting young girls where they already are: online. Using media and technology to deliver content they want and trust, Posner Odede said, “We create safe spaces for girls — sharing facts, and answering questions about health, nutrition, education, relationships and so much more.”

Providing Space for Girls

The Girl Effect Program provides spaces where girls can ask questions and obtain accurate information–without shame or possibly dangerous scrutiny from those around them. One of the program’s most innovative tools is its AI-powered chatbot, Big Sis, in South Africa. Big Sis acts as a virtual big sister, responding instantly and privately to questions about sex, relationships and health. Posner Odede said, “By using chat technology, we’ve created this ‘virtual big sister’ that can respond to every girl instantly and privately.” Since its launch, more than 75,000 girls have started chats with Big Sis and sent over 1.3 million messages. Data shows that after advice from Big Sis, 76% of girls intend to access a health service before starting a new relationship, a figure that is 12% higher than among girls who have not used it.

Following the success of Big Sis, the Girl Effect program expanded to India with Bol Behen (a phrase that means “Speak! Sister” in Hindi), a chatbot that communicates in Hinglish. Posner Odede explained, “Girls sometimes feel more comfortable talking to a robot, because they are not afraid of being judged. In other words, they feel empowered to ask questions around topics that might be considered explicit elsewhere.” Within two years, Bol Behen facilitated 98,000 conversations and 1.6 million messages, increasing users’ knowledge of sexual health by an average of 15% compared to non-users.

TEGAs

The Girl Effect program also relies on networks of Tech-Enabled Girl Ambassadors (TEGAs) aged 18–24, who collect real-time insights from their communities using mobile tools. During the pandemic, when face-to-face research became impossible, 29 TEGAs in six countries participated in Hear Her Voice, a program wherein they documented their realities and recommendations for Girl Effect through digital diaries.

Posner Odede expanded, “The pandemic made face-to-face research impossible, so we ran a project called Hear Her Voice where TEGAs shared digital diaries with us — turning the camera on themselves to document their reality, resilience and recommendations for the support they needed.” This approach allowed the program to respond quickly to emerging challenges and ensured that the girls themselves shaped ongoing programming.

One TEGA, Rahma from Tanzania, exemplifies the impact of the program. Through the program, Rahma launched a liquid soap business, learned skills online and created income for her household. Posner Odede shared, “Rahma is using technology to start her own business and take control of her livelihood. She thinks the community should see a girl as a person with power, because that is the way she sees herself.” Through the program, Rahma launched a liquid soap business, learned skills online and created income for her household–all with the power of the internet.

Adapting Programs to Local Contexts

Media and entertainment form another core component of the Girl Effect program. TV dramas, radio shows, magazines and digital content deliver lessons on health, relationships and education. Posner Odede explained that the program adapts content to local contexts and challenges harmful societal myths. One such ‘myth’ was misinformation about vaccines, including the HPV vaccines.

“We have been using knowledge and insight gained from our work with Gavi, the Vaccine Alliance, in Ethiopia, Rwanda, Malawi and Tanzania — where we used our TV dramas, radio shows, magazines and digital content to improve girls’ knowledge about the HPV vaccine and cervical cancer, including challenging myths about it — as the foundation of our approach to tackle misinformation around vaccine hesitancy when it comes to COVID-19.”

Partnerships like the one with Gavi strengthen the program’s impact. Posner Odede emphasized the importance of working with organizations that share their goals: “We are really lucky to have partnered with a host of such organizations, such as Vodafone Foundation.” Such collaborations allow the program to expand its digital infrastructure and further ensure safe, secure and scalable spaces for girls.

Learning New Skills

In providing these online safe spaces, the Girl Effect program seeks to enable girls to enact change in their real communities. Posner Odede described how the initiative arms girls with skills to negotiate and challenge societal norms: “Do not underestimate the power of girls to change both their own lives, and the lives of those around them. At Girl Effect, we arm girls with the skills to negotiate and redefine what they are told is possible ‘for a girl’.”

Posner Odede articulated the program’s ultimate goal: “It would have to be realizing gender equality in every aspect of girls and women’s lives. This is Girl Effect’s key aim and we are proud to be working towards it.” Through its integrated approach of media, technology, research and community engagement, the Girl Effect Program works hard to address the complex challenges facing girls in poverty, from gender inequality and health misinformation to limited access to education and economic opportunity.

The Future

As the Girl Effect Program and the network of TEGAs expand across Africa and Asia, it provides a scalable and reproducible model for empowering girls while strengthening communities. Posner Odede concluded, “We know that when a girl unlocks her power to make different choices that change her life, it inspires others to do so too. She starts a ripple effect that impacts her family, her community, her country.” The Girl Effect program demonstrates that supporting girls is not only a matter of creating equity, but a strategic investment in the well-being of our global society.

– Kelsey Eisen

Kelsey is based in San Francisco, CA, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

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A Hard Look at Food and Water Scarcity in Afghanistan

Water Scarcity in AfghanistanFor many years, millions of people in Afghanistan have been facing severe levels of food insecurity compounded by critical water scarcity. Despite improvements in the winter season of 2021-2022, the crisis has remained mostly stagnant.

This results from drought, flash floods, dependence on other nations and damaged or insufficient infrastructure.

Water Scarcity

Afghanistan has been in the midst of a crippling drought since 2021. As of March, it’s estimated that 33 million Afghans do not have reliable access to water, according to the Red Cross. In 2023, 25 out of 34 provinces in Afghanistan were experiencing drastic water scarcity due to drought conditions. Similarly, UNICEF has reported that 80% of Afghans drink from unsafe, unregulated sources.

About 93% of children in Afghanistan reside in areas with high water vulnerability. The primary water source for Afghans is wells, of which there are more than 310,000. Mercy Corps has also reported an additional 120,000 borewells in and around Kabul alone. However, many of these wells have become unreliable. As of 2023, nearly half of Kabul’s borewells have run completely dry, while the remaining operable ones are deficient, retaining only 60% of their capacity.

In addition, Al Jazeera reports that “up to 80% of groundwater [in Kabul] is believed to be unsafe, with high levels of sewage, arsenic and salinity.” Furthermore, according to the U.N., in early 2024, many of the country’s northern and eastern regions experienced only 45–60% of the average precipitation. Mercy Corps reported that “Kabul’s aquifer levels have plummeted 25–30 meters in the past decade, with extraction exceeding natural recharge by a staggering 44 million cubic meters annually.”

By 2030, Kabul is predicted to become the first major city in the world to completely deplete its water sources, leaving six million people in dire need. However, there have been initiatives to combat this nationwide issue. In 2024, the Red Cross reported that its efforts to rebuild infrastructure in urban areas such as Kabul, Herat and Kandahar improved access to water for more than 1.1 million people. It also repaired more than 1,300 pumps and supplied villages with more than 1,800 sand filters, ultimately helping more than 275,000 Afghans. In May, the U.N. allocated $16.6 million to the Afghan government to help reduce the effects of drought in the north and northeastern regions.

Food Insecurity

As of 2023, 45% of Afghans were employed in the agricultural sector. However, flash floods, drought, earthquakes and poor infrastructure have proven catastrophic to crop yields, further worsening the nation’s dwindling food supply. According to the Integrated Food Security Phase Classification, as of April, an estimated 12.6 million Afghans were experiencing high levels of food insecurity. This is more than a quarter of the population. Of this group, 10.6 million were classified as emergency cases, while 1.95 million were in the crisis category.

According to the World Food Programme (WFP), 4.7 million women and children in Afghanistan currently need treatment for malnutrition. UNICEF also reports that one in three adolescent girls is anemic and only 12% of children aged 6–24 months receive the appropriate variety of nutrition for their age. This issue has been exacerbated by recent earthquakes, which have put 37,000 children at even greater risk.

The U.N. has also reported that “desertification has affected more than 75% of the total land area in the country’s northern, western and southern regions, reducing vegetation cover for pasture, accelerating land degradation and affecting crop farming in the last four decades.” Furthermore, the WFP was forced to halt aid distribution in May due to funding shortfalls. The nonprofit also stated that more than $560 million would be needed to continue its efforts.

However, UNICEF still provides aid. As of 2024, it reported supplying more than 62,000 families with micronutrient powder to combat malnutrition, with that number continuing to rise into this year. The organization also supports pregnant and lactating women, as well as children, in 34 regions. In total, UNICEF said it helped more than 630,000 children combat malnutrition in 2024 alone.

– Owen Armentrout

Owen is based in Detroit, MI, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Pexels

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Nutrition and Poverty in Delhi: The Role of Education and NGOs

Nutrition in DelhiDelhi, the capital of India, is considered a culturally rich and diverse city. A beautiful city, vibrant with people, an amalgamation of culture and a kaleidoscope of colors. It holds a fine balance between traditional and modern values. With its blend of ancient heritage and traditional modern life, the city attracts people from across the country. However, beneath the vibrant image lies a stark contrast, where nutrition and poverty in Delhi continue to disproportionately impact underprivileged children, limiting their access to basic resources, education and opportunity.

According to the NITI Aayog Multidimensional Poverty Index (MPI) report 2023, the share of the population living in multidimensional poverty declined from 4.43% in 2016 to 3.43% in 2021. However, this decline hides the reality in certain districts, especially in north and west Delhi, where poverty persists at troubling rates.

Education Inequality

While the country has seen overall improvement, education gaps remain a major issue in Delhi. A 2023 report by ThePrint indicated that “school attendance deprivation” increased from 31% in 2016 to 38% by 2021 in several districts of the city. This increase affects underprivileged children the most, often limiting their long-term prospects and trapping them in cycles of poverty. The situation is bleaker in rural parts of the nation.

According to the National Statistical Office (NSO), more than 20% of children between the ages of 6 and 14 in rural parts of India are out of school, compared to just 6% in urban counterparts. This reflects how nutrition and poverty in Delhi and beyond create long-term barriers to consistent school attendance and academic success.

Gender and Nutrition

Cultural biases and gender further deepen inequality in the country. An article by The Wire discussed how girls face a deficit in access to nutritional food sources because of the deep-rooted belief that boys will be the future providers in the family. Such beliefs amount to health issues for female children, including stunted growth and anemia.

The National Family Health Survey (NFHS) pointed out that “54-59% of girls within the age group of 15-19 years are anemic as opposed to 29-31% boys in the same group” in India. Poor nutrition affects their ability to attend and succeed in school, reinforcing both gender and economic inequality.

Pehchaan the Street School

Many NGOs in the city are working to change this trajectory by providing essential resources to underprivileged children. One such example is Pehchaan the Street School in the Delhi-NCR region. As the name suggests, the organization focuses on providing a “Pehchaan, an identity to underprivileged children by providing them with education.” The nonprofit has worked tirelessly for more than 10 years to provide free education to children in the rural and slum areas of the city, aiming to make each child self-sufficient and independent.

Beyond the classroom, the organization also conducts free health check-up camps and menstrual health seminars. It provides legal and financial aid and vocational training courses for its students, ensuring they receive comprehensive support and are well-equipped to pursue their dreams confidently. The organization has supported more than 5,000 underprivileged children in the city over the last decade, achieving a passing rate of 94%. It works to address issues of nutrition and poverty in Delhi, creating support systems where the government infrastructure often falls short.

As one student shared, “In my 10-year journey, it has become a very important part of my life. I attend school regularly and this is where I received a lot of love, care and guidance.” This heartfelt reflection underscores the transformative role that the organization has played in the lives of many children.

The Red Foundation

The Red Foundatiom was founded in 2022 in the capital. The NGO aims to improve nutrition and support the right to education for underprivileged and marginalized communities. The institution operates on four pillars: education, better livelihood, skill development and empowerment and awareness. These pillars form the foundation for the nonprofit’s various programs and initiatives. One such program, “Pathshala,” provides academic education and life skills to disadvantaged children. Another, “Swasth Bharat,” proactively brings medical services to underserved areas.

Final Remarks

The work of grassroots organizations like Pehchaan-the Street School and Red Foundation demonstrates that meaningful change is both possible and already in motion. These efforts have brought education, health care and nutrition to many children who might have otherwise been left behind.

However, nutrition and poverty in Delhi remain pressing challenges that require continued, coordinated action from both public and private sectors. The journey toward equity and empowerment is far from over, but it is well underway.

– Vasudhaa Shakdher

Vasudhaa is based in Vancouver, BC, Canada and focuses on Good News for The Borgen Project.

Photo: Unsplash

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The African Union’s SSE Strategy

SSE StrategyIn recent years, foreign aid has become increasingly political and divisive among Western nations. During his presidency, Donald Trump significantly reduced funding to the United States Agency for International Development (USAID), arguing for a more “America First” approach to spending. Similarly, countries such as the United Kingdom, France and the Netherlands have also scaled back their foreign aid commitments, citing shifting domestic priorities, according to The Financial Times.

The reduction in foreign aid spending by many Western countries has put significant pressure on global health organizations and the United Nations (U.N.), influencing them to adapt to a world where foreign aid budgets are no longer top priorities for high-income countries. A senior U.N. official, quoted in The Financial Times, acknowledged the severity of this shift, stating, “Around a fifth of the total aid budget is gone and we have to accept that.” In response, international agencies like the Global Fund to Fight Aids and the Vaccine Alliance are forced to scale back programs and sometimes discontinue aid projects altogether.

The Impact of Foreign Aid Cuts on Africa

Reductions in foreign aid spending, specifically budget cuts to USAID, have disproportionately impacted Africa, where millions rely on foreign aid assistance for health care services. In 2024, under the Biden administration, USAID allocated 31% of its total budget—totaling $12.7 billion—to aid programs across the continent.

These funds supported critical health initiatives targeting HIV/AIDS, malaria, tuberculosis, maternal and child health and nutrition. According to African Practice, the African Center for Disease Control and Prevention estimates that aid reductions could push an additional 5.7 million Africans into extreme poverty.

In the wake of aid cuts, the African Union has implemented a plan to navigate away from aid reliance and toward continent-wide development. The plan is a 10-year Social and Solidarity Economy (SSE) strategy, which focuses on strengthening locally rooted businesses and providing community-led public services and health care. By reinvesting the profits from these programs, the goal is to stimulate growth and create new jobs, ultimately stabilizing the continent and reducing the need for foreign aid.

Impacts from the African Union’s SSE strategy are already being seen across the continent. Below are a few highlights.

Babban Gona

Babban Gona is a farmer-owned cooperative based in Nigeria that supports the development of smallholder farms. Since its founding in 2010, the organization has created more than 80,000 jobs, impacted above 35,000 individuals in local communities and invested tens of millions of dollars into rural economies. These efforts have significantly reduced poverty and regional violence. The African Union’s SSE strategy aims to build on successful models like Babban Gona to promote broader community-driven growth across the continent.

Broad Reach

South Africa’s BroadReach program utilizes AI-driven data platforms to improve HIV and tuberculosis treatment nationwide. With support from government partners, BroadReach has enhanced the efficiency and reach of public health care systems, positively impacting millions of people and raising the overall quality of care. The program serves as a blueprint for how other African countries can scale health care services locally, minimizing foreign aid reliance for health care initiatives.

Esoko

Esoko is a Ghana-based project that uses mobile technology to provide communities with the necessary information to support positive change in agricultural markets. With more than one million farmers already impacted, Esoko delivers real-time updates on market prices and climate data to smallholders, improving both sustainability and productivity, according to Esoko.

Esoko has already improved farmers’ livelihoods across Ghana by creating a more interconnected agricultural market chain. This success can be scaled to surrounding regions under the African Union’s SSE strategy, making agriculture more dependable and profitable for many of Africa’s most vulnerable communities.

Final Remarks

While foreign aid cuts from Western nations have created challenges across Africa, they’ve also forced a necessary shift toward self-reliance and continent-wide development. Indeed, the African Union’s SSE strategy offers a new path forward. Programs like Babban Gona, BroadReach and Esoko show that locally based solutions already positively impact Africa. With continued support from the African Union, Africa has the tools to stimulate growth without depending on foreign aid.

– Jordan Venell

Jordan is based in Edina, MN, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

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The Portuguese Housing Crisis: Rising Rents and Solutions

The Portuguese Housing CrisisIn a 2025 survey, residents of Portugal were asked what they believed to be the country’s biggest issue. About 43.4% identified the housing crisis as the main problem, ranking it second to the health care system. The Portuguese housing crisis intensified in 2025. With soaring property prices and limited affordable housing, many residents find it increasingly difficult to feel secure in their current living situations.

In early 2025, property prices in Portugal experienced a record annual increase of 16.3%, exacerbating the housing crisis, particularly in urban centers like Lisbon and Porto. In addition, rent prices are projected to rise by 2.16%, impacting tenants across the country. However, recent government initiatives and policy reforms aim to alleviate these challenges and provide sustainable solutions for residents.

Government Measures To Expand Affordable Housing

The government launched a more than $2.2 billion package to address Portugal’s housing crisis and build around 33,000 new homes by 2030 for low-income families. Of these, 10,000 will have full non-refundable financing, with the remaining homes benefiting from public grants covering 60% of construction costs. Together with previous investments under the Recovery and Resilience Plan (RRP), the total committed public housing units are closer to 59,000 by 2030.

Parallel to this, the government signed an agreement with the European Investment Bank for a $1.5 billion credit line to build and renovate approximately 12,000 controlled-rent homes. These homes are meant to be affordable and are part of the housing policy, which is being treated as a core priority under the current administration.

The Construir Portugal strategy deploys more than 30 measures to address the housing crisis. These measures focus on increasing supply (public, private, cooperative), simplifying licensing, restoring confidence in the rental sector and ensuring legislation supports affordable housing.

These large-scale investments and policy reforms are central to tackling Portugal’s housing crisis. They aim not only to expand housing stock but also to improve terms of access and ensure affordability for vulnerable and middle-income households.

Policy Reforms To Stabilize the Market

Beyond construction, policy reform is also a critical part of addressing Portugal’s housing crisis. The government has introduced tax incentives for young buyers, such as exemptions from property transfer tax and stamp duty for people younger than 35 purchasing homes valued up to $369,800.

Portugal’s parliament has approved a major reform that has allowed rural land to be reclassified for urban use, with at least 70% being reserved for affordable public housing. The law has set the maximum sale prices below the market rates to curb speculation.

“The housing crisis in Portugal is serious and we need more cheap homes,” stated Territorial Cohesion Minister Castro Henriques in parliament. However, these reforms have been criticized by up to 21 different environmental NGOs. They warn that these reforms could trigger “uncontrolled urban expansion” despite existing urban land not being used and 720,000 homes still vacant.

Yet with Lisbon rents up 94% and house prices rising 186% since 2015, the government has argued that these reforms are essential to end Portugal’s housing crisis.

Private Sector Innovation and Modular Construction

Private sector innovation is becoming essential to solving Portugal’s housing crisis. Analysts stress that government efforts alone will not meet demand, meaning developers and construction companies must step in with scalable, cost-effective solutions.

A recent report by DWF highlights the need for regulatory reform and financial incentives to unlock new supply. Proposals include reducing or eliminating building fees, lowering VAT on housing projects to 6% and simplifying licensing procedures. These changes would reduce costs and delays, making it easier for private developers to respond to soaring demand.

At the same time, modular construction is gaining traction. Offsite building methods cut costs, shorten delivery times and improve sustainability. This has offered a practical way to increase housing stock a lot quicker. By delivering homes faster and at lower prices, modular housing can help offset supply shortages that have left many Portuguese families struggling.

Yet the urgency is clear, experts warn that Portugal still needs around 150,000 homes to balance the market, with banks cautioning that Portugal’s housing crisis is becoming “unsustainable.” The private sector can help ease Portugal’s housing crisis through innovation and public-private collaboration.

Long-Term Outlook

The Portuguese housing crisis remains one of the most urgent social and economic issues plaguing the country. With rent and property prices outpacing wages, thousands of families risk being priced out of their homes. While government investment packages, policy reforms and new regulatory frameworks signal a serious commitment to change, private sector contributions, from modular construction to cooperative developments, are vital in closing the ever-growing housing gap.

Yet, experts continue to warn that the shortfall of affordable homes remains severe. Environmental concerts of many NGOs over urban expansion also highlight the delicate balance between rapid development and sustainable planning.

Ultimately, solving the Portuguese housing crisis will require long-term collaboration between government, industry and local communities. If these measures are effectively implemented, they offer a chance to stabilize the market and restore hope to the many families who want an affordable, secure place to live.

– Charlie Wood

Charlie is based in West Yorkshire, UK and focuses on Business and Politics for The Borgen Project.

Photo: Pixabay

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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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BC Sakhi in India: Women Bringing Banking to Rural Doorsteps

BC Sakhi in IndiaAfter years of rapid digitalization, even coming across someone without a bank account has become an extremely rare sight for almost anyone today. However, this was far from reality for rural India just a decade ago, where, until 2014, only 35% of adults had an account with a financial institution, leaving millions excluded from formal banking.

This severe gap was not merely impractical, but resulted in a perpetual cycle of debt for many. Local moneylenders in rural India often charge high interest rates to exploit villagers with little to no knowledge of or access to formal credit and banking.

The Launch of BC Sakhi in India

2020 marked the start of something that completely reshaped a harsh reality for many rural Indians. Over the past five years, the Bank Correspondent (BC) Sakhi initiative has been dedicated to bridging this gap that leads to exploitation, going door-to-door to bring India closer to true financial freedom.

Launched by the Indian government under the National Rural Livelihoods Mission (NRLM), the BC Sakhi (friend) initiative aims to appoint at least one female banking correspondent for every Gram Panchayat (village council). Women from self-help groups are recruited and provided with extensive vocational training to be on the frontlines of financial inclusion, interacting with villagers to transform financial management.

These women take on roles ranging from raising financial literacy to opening bank accounts and linking villagers with credible institutions that offer credit, savings and government benefit transfers.

A Community-Centered Approach

The initiative adopts a tailored approach to overcome connectivity barriers—historically a major reason for access gaps in villages. Women within the community, often from underprivileged backgrounds and needing employment, are brought into the program. This enables them to secure a stable income to support their families while gaining vocational skills that help them advance in their careers.

Technology as a Tool for Inclusion

A door-to-door approach, while fruitful, created challenges of efficiency that needed to be resolved to speed up progress for villagers. As of 2022, only 37% of rural Indians were aware of or claimed to have used digital banking. Reflecting on this trend, the initiative tapped into an underutilized resource with great potential to transform banking for rural Indians—technology. Digital tools to accelerate adoption include: 

  1. Aadhaar-enabled payment systems: Bank accounts were linked to government IDs, allowing the use of biometrics to approve deposits and withdrawals.
  2. Micro-ATMs: To eliminate the need for a traditional branch, low-cost handheld devices enabled women correspondents to carry out common transactions at the doorstep, including extending small loans to informal workers.

Banking on Women’s Empowerment

While serving the rural population, the initiative also empowers rural women in all aspects of life. By stepping into the role of a BC Sakhis, women gain access to:

  1. Income Generation: By earning commissions on transactions and service fees, BC Sakhis can generate supplemental income.
  2. Skill Development: All correspondents receive free or heavily subsidized training in digital tools, financial services and soft skills such as customer service and communication.
  3. Social Status: While acting as facilitators between villagers and banks, Sakhis gain confidence and respect within their communities. Government-led impact studies have shown increased confidence levels among women who work with the initiative.

The initiative has already trained more than 50,000 women to serve as links between rural Indians and formal banking. By adopting a community-centered approach, the program has contributed to positive change toward reducing both financial insecurity and social marginalization of women. As more villages continue to be linked to correspondents under the scheme, BC Sakhi in India is set to remain a cornerstone of the nation’s journey to complete financial inclusion.

– Anahadhbir Singh

Anahadhbir is based in Toronto, Canada and focuses on Good News for The Borgen Project.

Photo: Unsplash

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Women’s Empowerment in Rwanda is Driving Poverty Reduction

Women’s Empowerment in RwandaWomen in Rwanda have played a pivotal role in improving the country. Their influence and policies have shown how women’s empowerment in Rwanda can reshape a nation’s social and economic landscape. With 63.8% of seats in the Chamber of Deputies held by women, the highest proportion in the world, the country has translated political representation into concrete policies that reduce poverty and improve the quality of life for all.

Increasing Exports

Almost 70% of Rwandan women work in agriculture and the practice covers a third of GDP and accounts for nearly half of all export revenues. Therefore, empowering female farmers in Rwanda is pivotal to increasing the economy. The World Food Programme (WFP) and partners have introduced various initiatives to help reduce gender inequalities, improve food security and support potential female leaders. Farmers are now being taught entrepreneurial skills such as public speaking and governing, as well as innovative farming techniques such as grafting, market access and contract negotiation.

Another major export that Rwanda relies on is coffee. With 400,000 rural smallholder families engaged in production, coffee remains a cornerstone crop in Rwanda. Among the key actors is the Twongere Umusaruro Cooperative (TUK), which works closely with the Relationship Coffee Institute (RCI). Founded in 2013, RCI aims to transform the lives of rural, low-income women coffee farmers by providing training and access to markets. Initially working with 4,000 women, the organization has since expanded to support more than 30,000 coffee growers.

Additional Women’s Centers

Rwanda has established several women’s centers to address gender-based violence, inequality and discrimination, while promoting economic empowerment. Access to justice has improved nationwide, with eight centers providing comprehensive services to survivors of gender-based violence.

Furthermore, Women for Women Rwanda’s program has reached more than 80,000 women, providing training, mentorship and opportunities to build sustainable livelihoods. The organization also works with men through the Men’s Engagement Program (MEP).

Using a “training the trainer” approach, local leaders teach men about women’s rights and gender equality, encouraging them to influence others and create environments where women can reach their full potential. In 2023 alone, 920 men completed the MEP.

Improving Women’s Financial Inclusion

Women in Rwanda are more likely to struggle financially. They face higher unemployment rates and men still hold most managerial positions. To address this, the government has implemented the “Gender Equality Seal” program. If the government deems that a company supports women as much as men, it receives this title and additional benefits. As a result, women’s financial situations have improved, with access to financial products increasing by 11%.

Additionally, the Joint Programme on Accelerating Progress Toward the Economic Empowerment of Rural Women (JP RWEE) works across Africa, including Rwanda and is currently in its second phase. The program focuses on strengthening rural women’s access to finance and ensuring the lasting impact of their knowledge and skills.

Better Health Care

Rwanda has made significant strides in health care for women and children through innovation, technology and targeted interventions. The Rwanda Health Information System (RHIS) has made collecting and managing health data far more efficient. Furthermore, drones have greatly improved medical delivery time, particularly to remote areas.

The RapidSMS program sends pregnant women free text messages with health information, appointment reminders and alerts to health facilities about danger signs in their communities. These innovations have accumulated a global record in reducing maternal mortality. To maintain this progress, Rwanda has introduced maternal death audits, which investigate each case and recommend measures to prevent future fatalities.

Moreover, life expectancy for women in Rwanda has risen to 72 years. Around 97% receive antenatal care and more than 64% of married women use some form of birth control. Prevention of Mother-to-Child Transmission (PMTCT) services are available in 85% of health facilities, effectively eliminating mother-to-child HIV transmission. The government also plans to achieve 100% access to drinking water and electricity, with no significant gender disparities, further supporting women’s health and well-being.

Accessible Education

Rwanda has achieved universal education. Primary education is free and compulsory, with girls’ enrollment in primary school currently standing at 98%. Government programs have led to a more comfortable environment for girls. These include school feeding programs, 12 years of basic education and gender-friendly school environments. As a result, girls’ enrollment in science, technology, engineering and maths (STEM) subjects has risen considerably.

Prior to current initiatives, period poverty forced young women in Rwanda to stay at home. The government introduced Icyumba Cy’umukobwa (The Girls’ Room) to address the issue. These rooms provide a safe space for menstruating girls, offering free sanitary products, beds, pain relief and towels. Experienced female advisors support girls in navigating the challenges of menstruation. Furthermore, Rwanda also removed VAT on sanitary products as a nationwide initiative, continuing the fight to end period poverty for all.

Conclusion

Rwanda’s experience demonstrates that empowering women is a matter of social justice and a powerful driver of national development. From political representation and economic participation to education, health care and social initiatives, women’s empowerment has tangibly reduced poverty, increased productivity and improved quality of life across Rwanda. Women in Rwanda are proving their value and showcasing how sustainable development is inseparable from gender equality. Investing in women is investing in the future of the nation.

– Lysia Wright

Lysia is based in Derby, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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Telehealth: An Initiative To End Maternal Mortality in Honduras

Maternal Mortality in HondurasThe historic site of Cópan, located in the western highlands of Honduras, is world-renowned for its magnificent ancient Mayan ruins, but behind the famous carved stone monuments and hieroglyphic stairs, the region suffers from extremely high maternal mortality rates and a lack of access to health care services. This development reflects a greater trend of inequality and misinformation, which presents a life-threatening problem for Honduran mothers and their infants.

Maternal Mortality in Honduras: A Grave Problem

As of 2024, the maternal mortality rate in Honduras clocked in at 58 per 100,000 live births. One significant contributing factor to these alarmingly high rates is a widespread lack of access to health care, especially in rural areas. Honduras ranks among the nations with the lowest physician density in Latin America. However, approximately 57% of live births occur in rural regions. Consequently, a dangerous shortage of medical assistance and knowledge exists in highland regions like Cópan, which is a five-hour drive away from Guatemala City, the nearest metropolitan area.

Even though Honduras has taken strides in reducing maternal deaths in the past few years, its rates still surpass those of comparable countries such as Mexico, Nicaragua and El Salvador. The statistics are grim. Approximately 4.2% of all deaths in women ages 15-49 are due to maternal complications, more than double that in the United States. The majority of these deaths are the result of severe bleeding and infections, which could be prevented if not for the lack of quality health care in rural areas.

Misconceptions Impacting Infant Health

The neonatal mortality rate in Honduras is correspondingly high, at an average of nine deaths for every 1,000 live births. Without their mothers, many infants are subject to neglect and other potentially harmful practices, which include feeding the infant with a damp, honeyed cloth and wrapping a band around its umbilical cord. In villages where the nearest medical facility is hundreds of miles away, it’s easy for dangerous misconceptions like these to spread.

However, researchers theorized that educating community members could bridge the knowledge gap and increase awareness of healthy postpartum practices. A health care intervention system was implemented in more than 5,000 households in the Cópan region to test this notion. During this period, families were regularly visited by community health care workers who instructed them on birth-related topics such as infant care, illness prevention and reproductive health.

Along with increasing parents’ likelihood to visit a health facility and breastfeed the infant shortly after birth, the intervention also decreased potentially dangerous practices. The study showed that providing health care services can significantly increase maternal and infant health, demonstrating an urgent need to implement medical services in rural areas.

The Pan American Health Organization

The Pan American Health Organization (PAHO) is an international public health agency comprising 35 member countries in North, Central and South America. Since its founding in 1902, it has collaborated with governments and other organizations to address key problems in Latin American health care. Its achievements are lengthy and include extending the hemisphere’s life expectancy, eliminating numerous fatal diseases and spearheading the world’s first global immunization week. However, the organization’s work is far from over.

An interview with PAHO director Jarbas Barbosa illustrates exactly how the organization’s innovative solutions propel it into a new era of health and connection. Barbosa is no stranger to hard work; soon after obtaining his master’s degree and PhD from the University of Campinas in São Paulo, he embarked on a decades-long journey in public health.

Upon interviewing him about the PAHO’s vision for the future, his passion for improving the lives of others is clear in his promise that, “as director, I am committed to expanding our engagement to improve the health and well-being of all people in the Americas.” He believes that by investing in solutions that address common health problems, PAHO can address the root causes of other prevalent issues affecting Latin America, from political corruption to climate instability.

However, he emphasizes that the PAHO can’t expect to do this independently; instead, “Successfully meeting all these challenges requires effective coordination across sectors.” To do this, PAHO collaborates with influential groups like the World Bank and invests in new research and technology to best address the needs of the Latin American population.

PAHO’s Maternal Telehealth Initiative

So, what do scientific studies on rural health care intervention and the PAHO’s goal of technological collaboration mean for maternal health in Honduras? The answer is a groundbreaking telehealth initiative that enables essential medical assistance for pregnant women living in rural areas.

In collaboration with the Latin American Center for Perinatology, the PAHO has established a teleconsultation pilot, in which women are provided with routine blood-pressure testing and virtual check-ins throughout their pregnancy. As a result, potential maternal complications can be addressed before they become life-threatening.

The program also utilizes the help of community volunteers, who are trained to take vital readings and spread information about immunizations and healthy habits to their community. Bremen de Mucio, a Regional Maternal Health Advisor at PAHO, calls the initiative “a standout example of collaborating to address health care challenges and improve health equality.” While it is too early to observe its long-term effects, telehealth is undoubtedly a significant step in identifying warning signs and reducing pregnancy-related deaths.

– Grace Gonzalez

Grace is based in Oakton, VA, USA and focuses on Business and Global Health for The Borgen Project.

Photo: Flickr