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Bafa Resort Reducing Poverty in Sierra Leone

Poverty in sierra leoneThough Sierra Leone is known for its beautiful beaches and vibrant culture, this West African country also faces persistent poverty. Inflation, minimal career opportunities and unequal access to resources and education contribute to almost two-thirds of citizens living below the poverty line. Repeated media coverage of tragedies in Sierra Leone, such as civil war, natural disasters and disease outbreaks, often deters tourists from visiting and supporting local businesses. However, tourism may have the potential to strengthen Sierra Leone’s economy. Here is how places like Bafa Resort can create new financial opportunities for Sierra Leone.

Poverty in Sierra Leone

As of 2024, about 65% of Sierra Leoneans, more than 5.5 million people, were living below the national poverty line. Poverty is especially prevalent in rural areas, where the poverty rate is roughly three times higher than in most urban areas. One of the many factors that contribute to the prevalence of poverty is the lack of stable job opportunities, particularly in rural areas. In 2022, about 289,000 adults were unemployed in Sierra Leone. Most people rely on inconsistent, low-paying jobs to survive, with 91.7% of working adults holding informal jobs.

Youth ages 15 to 24 and women are especially at risk of being unemployed or underemployed. Approximately 15.6% of adult women and 35% of youth in the workforce are underutilized. Low-income families often lack the funds to send their children to school, forcing youth to accept low-paying jobs and about 30% of girls to marry before age 18. Even when children can go to school, many schools do not have sufficient school supplies, qualified teachers or decent classrooms to effectively teach students.

About Bafa Resort

Bafa Resort is an eco-resort in the Banana Islands of Sierra Leone. Guests can enjoy meals made from locally sourced ingredients and partake in activities such as fishing, free diving, hiking and kayaking. Bafa Resort also offers several camping packages to suit guests’ preferences and budgets, ranging from guests pitching their own tents to relaxing in one of several “glamping tents” overlooking the ocean.

Bafa Resort has made intentional efforts to support islanders and local businesses. By buying locally sourced foods, Bafa Resort supports more than a dozen Sierra Leonean businesses while providing guests with fresh, quality meals. The community also receives “development fees” on behalf of resort guests to help support local industries and higher education. Additionally, locals are given priority for employment opportunities, especially women and youth.

One local who has benefited from working at Bafa Resort is kitchen manager and team leader Kona Keitell, affectionately known as “Aunty Kona” or “Aunty K.” Despite only having a Grade 2 level education, Keitell ensures that daily operations in the kitchen and the rest of the resort run smoothly. In 2018, Keitell was the first Bafa employee to benefit from the resort’s three-month paid maternity leave after welcoming her baby, Augusta. With the responsibility and skills she has learned through Bafa Resort, Keitell hopes to one day open her own restaurant.

Looking Forward

According to tour guide Peter Momoh Bassie, tourism is crucial in fostering economic growth in Sierra Leone. Places like Bafa Resort not only provide jobs and the chance to escape poverty for locals, but also advertise the nation as a tourist hotspot where visitors can relax, explore and enjoy the natural beauty. By changing global perceptions and supporting local businesses, tourism offers Sierra Leoneans a second chance at life.

– Lily Alexander

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

Photo: Wikimedia Commons

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How Nollywood Is Creating Economic Opportunities in Nigeria

Musicians perform on an outdoor stage, creating economic opportunities in Nigeria.Nigeria’s film industry, known as Nollywood, has grown from a local entertainment sector into one of the largest film industries in the world. Nigeria’s growth is unfolding against a difficult backdrop: the World Bank has reported that poverty in Nigeria has been rising in recent years, with 63% of the population, or roughly 140 million people now living below the national poverty line. Against this backdrop, Nollywood’s expansion carries added significance. Beyond producing movies, Nollywood is creating economic opportunities in Nigeria by generating jobs, encouraging entrepreneurship and supporting businesses across several industries. According to Elton B. Stephens Company (EBSCO), the Nigerian film industry produces thousands of films each year and employs many people directly and indirectly. As the industry continues to expand, it is helping many Nigerians build sustainable livelihoods while contributing to the country’s economic growth.

Nollywood Creates Jobs Across Many Professions

Nollywood employs far more than actors. Every film production requires screenwriters, directors, producers, cinematographers, editors, sound engineers, makeup artists, costume designers, photographers and marketers. The industry also supports caterers, drivers, hotel operators, equipment rental companies and digital content creators. Greater investment in Africa’s film and audiovisual industry could create more than 20 million jobs and contribute billions of dollars to the continent’s economy, United Nations Educational, Scientific and Cultural Organization (UNESCO) reports. As one of Africa’s leading film industries, Nollywood plays an important role in expanding economic opportunities in Nigeria through direct and indirect employment.

Access to finance remains one of the biggest challenges for many creative entrepreneurs. To address this, the Bank of Industry introduced the Creative Industry Financing Initiative (CIFI) in partnership with the Central Bank of Nigeria. The initiative provides loans to businesses in film, fashion, music and information technology to help them expand their operations and create jobs. CIFI helps filmmakers buy equipment and improve production quality. By supporting entrepreneurs in the creative sector, the initiative strengthens economic opportunities in Nigeria and encourages investment in one of the country’s fastest-growing industries.

Training and Mentorship Support Young Creatives

Several organizations are helping young Nigerians build careers in the creative industry. The Tony Elumelu Foundation provides entrepreneurship training, mentorship and seed funding to thousands of African entrepreneurs each year, including business owners in film and other creative sectors. The Lagos State Creative Industry Initiative also provides training for aspiring filmmakers, actors and content creators. The program focuses on developing practical skills that prepare participants for careers in Nigeria’s growing entertainment industry. In addition, the Africa International Film Festival (AFRIFF) offers workshops, masterclasses and networking events that connect emerging filmmakers with experienced professionals from Nigeria and around the world. These opportunities help participants improve their skills and build valuable industry connections.

The impact of Nollywood extends beyond film production. As more movies are produced, businesses in transportation, hospitality, tourism, fashion and technology also benefit. Hotels host film crews, transport companies move equipment and cast members, while fashion designers and makeup artists gain new clients through productions. According to UNESCO, stronger investment in Africa’s film industry could unlock millions of jobs across the continent. Nigeria’s success demonstrates how creative industries can become powerful drivers of development. As Nollywood continues to grow, it is creating economic opportunities in Nigeria by supporting entrepreneurs, generating employment and helping more young people earn sustainable incomes.

Conclusion

Nollywood has become much more than an entertainment industry. It is creating jobs, supporting entrepreneurs and encouraging investment across several sectors of the Nigerian economy. Funding initiatives such as the Bank of Industry’s Creative Industry Financing Initiative, entrepreneurship support from the Tony Elumelu Foundation, training through the Lagos State Creative Industry Initiative and networking opportunities provided by AFRIFF are helping more Nigerians build successful careers in the creative sector. While challenges such as access to funding and infrastructure remain, continued investment in Nollywood could expand employment opportunities and contribute to poverty reduction by helping more Nigerians earn stable incomes through the creative economy. With sustained support, Nollywood is well positioned to keep turning creative talent into lasting economic opportunity for millions of Nigerians in the years ahead.

– Abisola Oladipupo

Abisola is based in Hatfield, UK and focuses on Good News for The Borgen Project.

Photo: Unsplash

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How China Plus One is Creating Jobs in Vietnam

China Plus OneOver the past decade, a shift in global manufacturing has quietly reshaped Vietnam’s economy. As companies move to reduce their dependence on a single country for production — a strategy known as “China Plus One” — Vietnam has become one of the world’s favored alternatives. The result is a wave of factory investment that is pulling rural Vietnamese workers into steady, formal jobs and helping drive one of the developing world’s most dramatic reductions in poverty.

What “China Plus One” Means for Vietnam

The China Plus One shift took hold after 2018, when U.S. tariffs on Chinese goods pushed multinational firms to diversify their supply chains. Vietnam, with labor costs roughly half those of neighboring China, a young and growing workforce, and membership in 17 free-trade agreements, positioned itself to absorb the change. It has become a leading destination for electronics, footwear and apparel manufacturing.

The investment figures are striking. In 2024, Vietnam attracted around $38.2 billion in registered foreign direct investment and a record $25.35 billion in actual disbursements, up more than 9% from the year before, with most of it flowing into manufacturing, according to figures from Vietnam’s Ministry of Planning and Investment. Much of that capital builds factories, and factories create jobs.

The Anchor: Samsung

No company illustrates the trend better than Samsung. The South Korean electronics giant has invested about $23.2 billion in Vietnam, making it the country’s single largest foreign investor, and now employs roughly 87,000 people across six manufacturing plants. Its footprint is so large that Samsung’s operations accounted for around 13% of Vietnam’s GDP and export turnover in 2024, according to Vietnam’s National Statistics Office. Its network of local suppliers employs tens of thousands more, spreading the benefits well beyond Samsung’s own payroll.

The Role of U.S. Companies

American firms sit at the center of Vietnam’s China Plus One boom. Vietnam is now Nike’s largest manufacturing base worldwide, producing roughly 51% of the company’s footwear, and the factories that supply Nike employ close to 500,000 Vietnamese workers. Apple’s suppliers have followed suit: contract manufacturers like Foxconn now assemble iPads, AirPods and other devices in Vietnam, work that once happened almost exclusively in China. This deepening trade relationship has paid off for both sides. U.S. imports of Vietnamese goods surged more than 360% in the decade to 2023, topping $144 billion, according to U.S. government data reported by CNN.

From Factory Floors to Poverty Reduction

The human impact makes this a development story. Manufacturing jobs have drawn workers out of subsistence agriculture and into the wage economy, often transforming quiet rural provinces into industrial hubs. Regions like Thai Nguyen and Bac Ninh, once farming districts, now host sprawling industrial parks that employ tens of thousands.

That transition tracks closely with Vietnam’s broader gains. The World Bank reports that Vietnam’s extreme poverty rate fell from 14% to under 4% between 2010 and 2023, while GDP per capita climbed from under $700 in 1986 to nearly $4,500 in 2023, a rise that export manufacturing largely powered. For millions of families, a factory paycheck has meant predictable income, access to benefits and a path into the middle class.

Why It Matters

The model has real limits. Much of Vietnam’s electronics work remains lower-margin assembly that depends on imported components, and factory towns can suffer when global demand slumps. Analysts note that sustaining progress will require Vietnam to move up the value chain and build domestic capacity.

Still, the core lesson offers hope to advocates of global poverty reduction: integration into world markets, combined with steady investment, can lift large numbers of people into stable work. For Vietnam, China Plus One has been more than a supply-chain footnote — it has been a jobs engine.

– Jen Phan

Jen is based in Hanoi, Vietnam and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Small Countries Reducing Poverty

small country reducing povertyWhen people discuss global poverty reduction, they often focus on large economies like China or India. However, several smaller nations have achieved remarkable progress through targeted social programs, strong public investment and people-centered development strategies. These examples show how small countries reducing poverty can create meaningful change despite limited resources.

Many of these nations prioritize health care, education, environmental sustainability and social protection. Their success demonstrates that governments do not need massive populations or global economic dominance to improve quality of life and reduce poverty.

Costa Rica: Prioritizing People Over Military Spending

Costa Rica stands out as one of the strongest examples of a small country reducing poverty through long-term social investment. In 1948, Costa Rica abolished its military and redirected funding toward education, health care and public welfare.

This decision helped create one of the most stable social systems in Latin America. According to the World Bank, Costa Rica built a health care system that covers nearly the entire population while also maintaining high literacy and life expectancy rates.

Costa Rica also invested heavily in rural electrification, clean water access and environmental protection. The country now generates most of its electricity from renewable energy sources, which supports sustainable economic growth.

These policies reduced poverty while improving public health and economic opportunity. Costa Rica proves that governments can strengthen human development when they prioritize social investment over military expansion.

Uruguay: Building Strong Social Protection Systems

Another example of a small country reducing poverty is Uruguay. Although Uruguay has a relatively small population, it developed one of the strongest welfare systems in Latin America. The government expanded pensions, unemployment support and health care coverage while increasing access to education. Uruguay also implemented labor protections that strengthened wages and worker rights.

According to the Center for Economic and Policy Research, Uruguay consistently ranks among the countries with the lowest poverty and inequality levels in the region.

Uruguay’s economic strategy also focused on inclusion. Rather than concentrating growth among elites, policymakers expanded benefits to lower-income households and rural communities. This approach increased economic stability and reduced vulnerability during financial downturns.

The country demonstrates how democratic institutions and social spending can help small nations achieve lasting poverty reduction.

Bhutan: Progress Beyond Economic Growth

Bhutan offers a unique insight into how small countries reduce poverty as it measures national success differently from most countries. Instead of focusing only on Gross Domestic Product (GDP), Bhutan promotes the concept of Gross National Happiness (GNH). This concept emphasizes sustainable development, cultural preservation, environmental conservation and good governance. While Bhutan still faces economic challenges, the country has significantly reduced poverty over the last two decades.

According to the World Bank, Bhutan reduced poverty from 23.2% in 2007 to 8.2% in 2017 through investments in infrastructure, agriculture and social services.

Bhutan expanded road networks, improved rural health care access and increased school enrollment across remote communities. Hydropower exports also generated revenue that supported public programs.

This country’s development model shows that economic progress does not need to come at the expense of environmental sustainability or social well-being.

Mauritius: Diversifying Economy

Mauritius transformed itself from a low-income agricultural economy into an upper-middle-income country through diversification and investment in human capital. During the ’60s, many predicted economic difficulties because Mauritius relied heavily on sugar exports. However, the government expanded into tourism, manufacturing and financial services while investing in education and infrastructure.

The World Bank credits Mauritius with maintaining strong growth and reducing poverty through inclusive economic reform.

Mauritius also developed trade partnerships and encouraged foreign investment, which created jobs and increased income opportunities. Free education and health care strengthened social mobility and supported long-term development.

The country’s success demonstrates how smaller economies can adapt and compete globally through strategic planning and inclusive growth, moving itself away from the effects of poverty.

Important Lessons from Small Nations

The successes of these countries reveal several patterns behind small countries reducing poverty: Governments invested in health care and education. Leaders prioritized long-term human development. Social protection systems supported vulnerable populations. Economic growth reached rural and low-income communities. Policymakers emphasized sustainability and inclusion.

These nations also adapted policies to fit local conditions rather than copying outside models without modification. These examples are important to highlight because they demonstrate that poverty reduction remains available with the right policies and political commitment.

Global poverty still affects hundreds of millions of people, but the achievements of these smaller nations provide hope and practical guidance for others to follow. As governments continue to work toward the U.N.’s Sustainable Development Goals (SDGs), these examples of small countries reducing poverty remind the world that size does not determine impact. Strong social policies, inclusive economic growth and investment in people can help nations build a more equitable future.

– Leah Denning

Leah is based in Bristol, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Migration to Ecuador: An Untapped Economic Potential 

Migration to EcuadorWith a total population of approximately 18 million and an area of 276,841 square kilometers, Ecuador is one of the smallest countries on the South American continent. Due to its geographical location, it is also one of the largest host countries for hundreds of thousands of migrants. According to the United Nations High Commissioner for Refugees (UNHCR), migration to Ecuador is significant as more than 123,000 irregular migrants cross the Ecuadorian-Colombian border each year.

Meanwhile, the UNHCR estimates that nearly 500,000 refugees, asylum seekers, or people in need of protection have remained in Ecuador in the hope of a better life. Most of these are irregular migrants from Colombia and Venezuela. These groups are at risk of marginalization due to stigmatization, discrimination and a lack of valid documentation—yet new data shows that a well-organized strategy for integrating refugees has immense potential to boost the country’s economic growth. However, since the outbreak of the pandemic in 2020 the country has been struggling with serious crime issues. Drug cartels and gang crime are causing an increasing exodus of young and productive Ecuadorian workers. The result: no economic growth and a rising poverty rate.

Emigration of Productive Labor

Ecuador, once known as the “Island of Peace,” attracted immigrants from around the world due to its comparatively low homicide rate. As the Center for Strategic and International Studies reported, Ecuador’s homicide rate in 2019 stood at 6.7 per 100,000 inhabitants, making it one of the lowest among Latin American countries. 

During the pandemic, the situation shifted dramatically: Lockdowns forced businesses to close, tourism declined and oil exports fell. Ecuador’s central bank reported a 7.8% decrease in gross domestic product (GDP), while unemployment rose rapidly. Three out of 10 workers lost the jobs they held before the pandemic; half of them remained unemployed. The homicide rate jumped to 50.91 per 100,000 inhabitants in 2025.

As a result, income levels in Ecuador have changed: according to the National Institute of Statistics and Census (INEC), income poverty rose from 25% in 2019 to nearly 33% in 2020—1.4 million people fell into income poverty.

At the time, an undesirable but already well-researched phenomenon plagued the country: the positive correlation between poverty and crime. In other words: rising poverty leads to a higher risk of violence and crime, which, according to Ecuador’s Ombudsman’s Office (DPE), has resulted in the displacement of more than 300,000 Ecuadorians in recent years. Demographically speaking, most of them are young men of working age. A paper by the Inter-American Development Bank (IDB) calculated the direct cost as an average of 3.44% of the GDP annually. Indirectly, the exploding crime rates slow down economic growth.

Ecuador as a Host Country

Ecuador serves as a transit and entry country for groups from Africa, Cuba and Haiti. The country has, for decades already, been experiencing an influx of refugees from countries plagued by armed conflict and violence. Nonetheless, two main groups mark migration to Ecuador: 

Migrants from Colombia who have fled an armed conflict between guerrilla groups and the government that has been ongoing for more than 50 years. There are an estimated 130,000 to 200,000 Colombians living in Ecuador; according to the UNHCR, 94% of the more than 80,000 recognized refugees are Colombians.

In addition, Ecuador is home to Venezuelans who fled the humanitarian crisis under the Maduro regime. Around 440,000 migrants have applied for asylum, but only a small number of Venezuelans in Ecuador have valid residency documents. For Venezuelans, it takes months or even years to obtain a document such as an ID card or a passport. These delays are due to very high financial barriers, political restrictions, and the general collapse of the Venezuelan bureaucracy.

Migrants in Ecuador Face Legal Obstacles and Discrimination

The status of undocumented refugees creates significant barriers and contributes to the marginalization of these groups. At the same time it opens the door to systemic discrimination, exposes them to the risk of crime and violence, and traps refugees in a cycle of poverty. Access to housing, healthcare, education or employment appears to be significantly more difficult. Although an estimated one-third of refugees in Ecuador hold a college degree, the vast majority end up in the informal sector, with some earning a per capita income of only about $175 or less.

People in host countries often stigmatize minorities. They frequently project the violence and poverty prevalent in refugees’ countries of origin onto those seeking protection, which hinders their cultural and socio-economic integration. In crisis and conflict situations, politicians exploit fear and uncertainty for propaganda against migrants, in the hope of achieving better election results by stoking fears of competition for jobs or a strain on public finances.

Migration to Ecuador Can Boost Economic Growth

However, contrary to all the clichés, propaganda, and hate campaigns, recent statistics from the Center for Global Development (CGD) show that Venezuelan migrants are underrepresented among those detained for criminal offenses in Ecuador. In 2025, Venezuelans made up 2.4% of Ecuador’s population but accounted for only 1% of all detainees. Studies even suggest that refugees are more likely to be victims of crimes committed by their hosts than the other way around, but most of these cases remain unreported due to lack of trust in Ecuador’s authorities.

Given the country’s precarious security and economic situation, the integration of migrants is a crucial factor for economic growth and the well-being of the Ecuadorian population. As the International Organization for Migration (IOM) notes, Venezuelan migrants contribute an estimated $900 million annually to the Ecuadorian economy—simply through their consumption of goods and services. A well-thought-out bureaucratic strategy and a liberalized refugee policy could benefit the country and generate additional resources to combat gang violence and crime.

Migration and Poverty

Humanitarian aid plays a crucial role in integrating migrants into Ecuador’s society. The situation in Colombia is a prime example of how vital financial support can be for the stabilization and integration of refugees: the country has taken in over 2 million Venezuelans. Through programs such as the “Humanitarian Cash Transfer” (HCT), which was funded by USAID’s Bureau for Humanitarian Assistance (BHA), households received $100 per month over a six-month period.

A study conducted by the International Monetary Fund (IMF) estimated the total cost of health care, education and other services for this period of assistance—assuming a total of 2 million refugees—at $1.3 billion. The IMF’s analysis highlights that host countries are under significant financial pressure. However, the study found a surprisingly positive impact on the countries’ productivity. Due to the growth of labor force and a better match between migrants’ human capital and available jobs, these countries are able to achieve meaningful productivity and growth gains in the medium term. The study estimates that GDP could grow by 2.5 to 4.5 percentage points by 2030. Furthermore the authors assume that the costs of integrating migrants and refugees would decrease if they gained access to the labor market due to increased economic activity and the expansion of the tax base. 

Projects such as HIAS’s Economic Empowerment Program aim to educate Venezuelans about their economic opportunities and help them develop a greater awareness of their skills and how to apply those skills in a business setting. By offering training, mentoring programs and start-up capital, Venezuelans can be integrated into the labor market. In this way, refugees are provided with a sustainable livelihood—while simultaneously contributing to a net benefit for Ecuadorian society and economic growth.

Conclusion

Migration to Ecuador plays a major role in the country’s middle-term and long-term development. In order to boost economic growth, Ecuador must tackle its national crime rate explosion. Therefore, the country needs to break its cycle of poverty, especially amongst migrants from Venezuela and Colombia. Moreover, the Ecuadorian population should recognize the potential that refugees bring to their country. Foreign aid and assistance combined with a consistent socio-economic integration strategy can provide long-term solutions for downsizing poverty and minimizing the negative effects on Ecuador’s economy.

– Oliwia Kowalak

Oliwia is based in Berlin, Germany and focuses on Good News for The Borgen Project.

Photo: Unsplash

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Policies That Lifted Millions Out of Poverty Around the World

Policies That Lifted Millions Out of PovertyGlobal poverty has declined in recent decades and much of this progress stems from policies that have helped lift millions out of poverty. Governments and organizations did not rely on chance; they implemented targeted strategies that improved incomes, expanded opportunities and strengthened social protection. Here is an overview of several policies that have helped lift millions out of poverty, highlighting real-world examples and why they worked.

Conditional Cash Transfers: Direct Support That Works

One of the most effective policies that lifted millions out of poverty is conditional cash transfers. These programs provide money to low-income families while encouraging education and health care. 

In Brazil, the Bolsa Família program helped alleviate extreme poverty and improve school attendance. Low-income families with children receive payments in return for sending their children to school and ensuring regular health care checkups. According to the World Bank, the program has contributed significantly to Brazil’s declining poverty and inequality.

Mexico also implemented a similar program, Prospera, which has shown long-term improvements in education and health outcomes. These programs succeed because they address immediate needs while investing in future generations. 

Investments in Rural Development and Agriculture

Many impactful policies that have lifted people out of poverty have focused on the rural populations, where poverty is often concentrated. In Vietnam, rural development and agricultural reform played a central role in poverty reduction. This began in the ’80s with the Đổi Mới reforms. 

The government moved away from collective farming toward a market-oriented system that gave households control over land and production. According to the United Nations Development Programme (UNDP) these reforms have helped reduce poverty from 58% in 1993 to 16% by 2006, largely driven by improvements in rural livelihoods and agricultural productivity. These reforms worked because they empowered individuals, improved market access and encouraged economic participation. 

Expanding Access to Education

Education plays a vital role in policies that have lifted millions out of poverty, particularly when governments prioritize girls’ education. Bangladesh made major progress by increasing female school enrollment and supporting women’s employment in industries like textiles. Programs that provided stipends for girls to attend school helped delay early marriage and improve long-term earning potential. 

According to UNICEF, Bangladesh achieved near gender parity in primary and secondary education. Educated women contribute more to the workforce, support healthier families and help break cycles of poverty. 

Universal Health Care and Social Protection Systems

Strong social protection systems represent another group of policies that lifted millions out of poverty. These systems reduce financial shocks and improve overall well-being. In Rwanda, the government introduced community-based health insurance, expanding access to medical care. 

Citizens gained affordable health care, reducing out-of-pocket expenses and preventing families from falling deeper into poverty. The World Health Organization (WHO) highlights Rwanda as a model for expanding health care coverage in low-income countries. Health care access supports productivity and stability, both of which drive poverty reduction. 

Economic Growth Paired With Inclusive Policies

Economic growth alone does not reduce poverty; governments must pair growth with inclusive strategies. China provides a clear example of this combination. 

China experienced rapid economic growth while implementing targeted poverty alleviation programs in rural areas. These programs included infrastructure development, relocation initiatives and job creation. The World Bank estimates that China has lifted more than 800 million people out of poverty since 1980, largely through these initiatives.

China’s approach shows that growth must reach marginalized communities to create a lasting impact. 

Why These Policies Matter Today

These examples of policies that have lifted millions out of poverty reveal common traits: 

  • Governments targeted the most vulnerable populations
  • Leaders invested in long-term human development
  • Programs combined immediate relief with structural change
  • Organizations like The Borgen Project advocate for similar approaches because they produce measurable results. 

Global poverty remains a challenge, but these successes prove that effective policies can drive meaningful change. When countries adopt and adapt these strategies, they move closer to achieving the United Nations Sustainable Development Goals (SDGs) of ending poverty worldwide. 

– Leah Denning

Leah is based in Bristol, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Pixabay

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Rwanda’s F1 Ambitions: A Race To Transform Africa

Rwanda's F1Rwanda, a landlocked nation in East Africa, is making a high-speed push onto the global stage and Formula 1 (F1) may be its most powerful vehicle yet. Rwanda’s F1 ambitions and economic growth have become central talking points in development circles as the sport turns its attention back to Africa for the first time in more than three decades. Rwanda positions itself not only as a host of the race but also as a model for how developing nations can use global sporting events to accelerate economic transformation.

Rwanda’s $1.2 Billion F1 Bid

The Rwandan government has officially bid to host Africa’s first F1 Grand Prix since the 1993 South African Grand Prix at Kyalami. The centerpiece of the initiative is a $1.2 billion state-of-the-art circuit planned near the new Bugesera International Airport, about 40 kilometers from the capital, Kigali. Construction is expected to begin in 2026, with the inaugural race targeted for 2027 or 2028. 

Rwanda’s Foreign Minister, Olivier Nduhungirehe, confirmed that the country remains in active talks with F1 leadership, pointing to the nation’s growing track record of hosting major international events. “We have demonstrated the capacity to host major sporting events,” Nduhungirehe told Semafor Africa.

The Economic Case for a Grand Prix

The link between F1 and Rwanda’s economic growth and long-term poverty reduction is grounded in concrete data. According to Further Africa, each F1 Grand Prix injects more than $100 million into a host country’s economy. Television broadcasts reach more than 400 million viewers worldwide and generate significant sponsorship and hospitality revenue.

Rwanda’s broader economy is already on a strong upward trajectory. The World Bank reported that Rwanda’s real GDP grew by 8.9% in 2024, surpassing the previous year’s rate of 8.2%, driven by robust private consumption, significant investment and strong performance in the services and industry sectors. That growth also produced tangible results for workers, with more than half a million new jobs created year over year. 

Sports Tourism Already Delivering Results

Rwanda has not waited for F1 to begin building its sports economy. The country signed sponsorship deals with Arsenal, Paris Saint-Germain, Bayern Munich and Atlético de Madrid as part of its “Visit Rwanda” tourism campaign. This strategy helped drive a 36% increase in tourism revenue to $636 million in 2023.

In 2025, the Rwanda Development Board (RDB) reported tourism revenues rising to $685 million, supported by 1.49 million visitor arrivals, a 9% year-over-year increase. That year also saw Rwanda host the UCI Road World Championships, a historic first for Africa, alongside Season 5 of the Basketball Africa League at the BK Arena in Kigali and the 73rd FIFA Congress. Rwanda’s travel and tourism sector contributed a record $1.5 billion to the national economy in 2024, representing 9.8% of GDP.

Building the Infrastructure of Growth

Rwanda’s sports ambitions are matched by targeted infrastructure investment. The Ministry of Sports has set a target of generating approximately $20.4 million (Rwf 30 billion) from sports tourism by 2029, a dramatic increase from the roughly $681,000 (Rwf 1 billion) projected for the 2024/25 fiscal year. Plans also include the construction of 540 sports facilities nationwide by 2028/29, with priority given to schools and public spaces to broaden access to athletics and associated economic opportunities.

Job creation is a direct priority. Experts forecast steady growth in sports tourism jobs, with positions increasing from 2,625 in 2024/25 to 3,190 by 2028/29. This growth across hotels, event planning and sports support services will create clear employment opportunities for young Rwandans.

A Blueprint Beyond the Track

Rwanda’s sports-led growth model aligns with its broader Vision 2050 agenda, which prioritizes economic diversification, job creation and sustainable development. The RDB reported $2.62 billion in registered investments across 799 projects in 2025, which are expected to generate more than 38,000 jobs in real estate, manufacturing and tourism. Analysts tracking the relationship between F1 and Rwanda’s economic growth say the motorsport bid reflects a broader pattern of using high-visibility events to attract foreign investment and build lasting infrastructure.

Local drivers Eric Gakwaya and Queen Kalimpinya have expressed optimism that Rwanda’s motorsport ambitions will also catalyze the development of local talent. It will inspire a new generation to pursue careers in competitive racing and the industries that support it.

If Rwanda secures the Grand Prix, it will restore Africa’s presence on the F1 calendar. It will also demonstrate how strategic investment in major sporting events can drive poverty reduction, infrastructure development and long-term economic growth across the continent.

– Nay Mohamad 

Nay is based in Milan, Italy and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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Estonia’s Startup Ecosystem Supports Economic Growth

Estonia's startup ecosystemThe startup ecosystem in Estonia has become a key driver of economic growth and innovation in recent years. Known for its advanced digital infrastructure and business-friendly policies, Estonia has created an environment where startups can develop and scale efficiently. These efforts have contributed to job creation, increased foreign investment and a more diversified economy. 

As a result, Estonia is often recognized as one of the most digitally advanced countries in Europe. Government initiatives and public-private partnerships play a central role in supporting startups. By combining digital governance with entrepreneurial support programs, Estonia has built a system that encourages innovation while reducing barriers to entry for new businesses.

Startup Estonia

One of the primary initiatives supporting Estonia’s startup ecosystem is Startup Estonia. This government-backed program aims to develop the country’s startup sector by connecting entrepreneurs with funding, mentorship and global markets.

Startup Estonia works to attract international investors while also supporting local entrepreneurs through networking opportunities and training programs. The initiative has helped foster a collaborative environment where startups can grow and access global resources. By strengthening connections between businesses, investors and policymakers, the program supports long-term economic development.

E-Residency Program

Another major contributor to Estonia’s startup ecosystem is the e-Residency program. This initiative allows individuals from around the world to establish and manage businesses in Estonia entirely online. Through e-Residency, entrepreneurs can access Estonia’s digital services, including company registration, banking and tax filing. 

This program has attracted thousands of international business owners, increasing foreign investment and expanding Estonia’s economic reach. By reducing administrative barriers, e-Residency enables startups to operate efficiently in global markets.

Digital Infrastructure and Innovation

Estonia’s digital infrastructure plays a central role in the success of its startup ecosystem. Platforms such as X-Road allow secure data exchange between government institutions, reducing bureaucracy and improving efficiency.

Digital ID systems also enable citizens and entrepreneurs to access services quickly, from signing contracts to filing taxes. These systems reduce the time and cost associated with starting and running a business. As a result, startups can focus more on growth and innovation rather than administrative processes.

Investment and Economic Impact

The Estonian startup ecosystem has attracted significant investment from both domestic and international sources. Venture capital funding and accelerator programs provide startups with the financial resources needed to scale their operations.

These investments have contributed to job creation in sectors such as technology, finance and logistics. As startups expand, they create employment opportunities and contribute to economic diversification. This growth can also benefit low-income Estonians by opening up new pathways to stable employment, particularly for young people and job seekers looking to enter emerging industries. 

Over time, a stronger, more diversified economy can help reduce poverty by increasing household incomes and expanding access to economic opportunities.

The Big Picture

The Estonian startup ecosystem demonstrates how targeted policies and digital innovation can drive economic growth. Programs such as Startup Estonia and e-Residency, combined with strong digital infrastructure, create an environment where businesses can thrive.

As Estonia continues to invest in entrepreneurship and innovation, its startup ecosystem offers insights for other countries seeking to promote economic development. By reducing barriers to entry and supporting small businesses, the startup ecosystem in Estonia contributes to long-term economic stability and opportunity.

– Jason Hill

Jason is based in Fullerton, CA, USA and focuses on Business and Technology for The Borgen Project.

Photo: Unsplash

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Comoros’ Ylang-Ylang Industry: Why Greener Growth Matters

Comoros’ ylang-ylang industryComoros ranks among the world’s leading perfume producers, alongside Madagascar and Mayotte. In the country, the ylang-ylang flower does more than produce luxury fragrances. It supports thousands of rural households and provides a steady, environmentally conscious source of income and economic growth.

This industry also strengthens the national economy. Agriculture accounts for about one-third of Comoros’ GDP and export crops such as ylang-ylang, vanilla and cloves drive much of that growth.

Greener Practices, Stronger Incomes

Ylang-ylang creates direct economic opportunities for many families in Comoros. Around 10,000 producers cultivate the crop, particularly on the island of Anjouan. Farmers and workers earn a steady income from harvesting and selling the flowers. Women play a central role, spending long hours collecting blossoms to sell by the kilogram.

Because producers can harvest ylang-ylang flowers multiple times each month, the crop provides income year-round. This cycle of greener growth helps households manage expenses and reduces income instability. The industry also supports broader economic activity.

Small distilleries purchase flowers from independent farmers, allowing even small-scale producers to participate in export markets. These businesses create jobs and strengthen local skills in processing and production. Licensed exporters help maintain quality standards and connect Comoros to global markets.

As a result, even remote communities benefit from international trade. In 2022, ylang-ylang exports generated about $5.56 million, making the crop one of Comoros’ most valuable export products. Major markets include France, Switzerland, the U.S. and the U.K. This global demand brings valuable foreign income into the country.

Comoros’ Ylang-Ylang Industry

Recent developments are improving both sustainability and economic resilience in Comoros’ ylang-ylang industry. Producers are upgrading distillation equipment to reduce costs and improve efficiency. Improved ovens and stainless-steel alembics use less wood, lowering production expenses and making operations more sustainable.

Farmers are also planting trees such as mango and breadfruit to secure fuel sources while protecting natural forests. These efforts support long-term productivity and help preserve the resources on which livelihoods depend.

A Future Rooted in Prosperity

New environmental programs are also creating additional income streams for rural communities. NGOs now pay farmers, known as “water guardians,” to restore forests and protect water systems. These initiatives provide financial incentives while strengthening local ecosystems.

By linking conservation with income generation, these programs help reduce poverty and build economic security. Ylang-ylang already generates export revenue, employment and steady income for rural communities. Now, greener production methods are improving efficiency, protecting natural resources and creating new opportunities.

With these changes, the “flower of flowers” can continue to drive economic growth while helping communities move out of poverty. Looking ahead, greater investment in ylang-ylang production could further accelerate poverty reduction in Comoros. Training farmers in improved harvesting techniques could increase yields and raise incomes without requiring more farmland.

Expanding local distillation capacity would also allow communities to capture more value before export, creating additional jobs. Improved infrastructure, including transport and storage, could reduce waste and increase profitability. As international demand for sustainable fragrances grows, Comoros is well-positioned to establish itself as a premium, ethical supplier.

This shift could strengthen export earnings while supporting rural livelihoods. By combining sustainability with productivity, ylang-ylang production offers a practical path toward inclusive economic growth and long-term poverty reduction.

– Demetra Mykoniatis

Demetra is based in London, UK and focuses on Good News for The Borgen Project.

Photo: Flickr

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How Running Programs Are Reducing Poverty in Kenya

Poverty in KenyaRunning has always been a big part of life in Kenya, especially in rural areas, where long-distance running is just part of the culture. But over time, it has become more than just a sport. For many people, it has become a real opportunity and, in some cases, a way out of poverty in Kenya.

In places like Iten, often called the “home of champions,” runners train every day, hoping to compete at a higher level. What is different now is that there are more structured programs and training camps that actually support these athletes and give them a better chance of succeeding.

Running as a Pathway Out of Poverty

For many athletes, running starts simply. It is just part of daily life. But with the right support, it can lead to real opportunities. Training programs can provide coaching, meals and even housing, which helps take some of the financial pressure off.

One example is Kenya Experience, a program that allows runners to live and train in a high-performance environment alongside other athletes. It connects runners with experienced coaches, structured training and exposure to international competitions, which many would not otherwise have access to. Programs like this make a difference by allowing athletes to focus more on training and less on everyday struggles.

Over time, this can lead to opportunities such as competing in major races, earning prize money or even securing sponsorships.

Opportunities Beyond the Track

Success in running not only benefits the athlete. When runners begin to earn money from competitions or sponsorships, they often use that income to support their families. In many cases, one successful runner can help pay for school fees, housing and basic needs for several people.

So it is not just one person benefiting. It can impact an entire household and sometimes even an entire community. Running also creates opportunities beyond just competing.

Coaches, trainers and even local businesses benefit from the presence of training camps and athletes. Places like Iten have seen growth partly because of the running culture there.

Why Kenya Stands Out

Kenya has become one of the most successful countries in long-distance running and that success has helped build a system around the sport. Young athletes grow up seeing people from similar backgrounds succeed, which makes it feel more realistic. There are also more camps and programs now than before, which means more access to training and support.

Not everyone will become a professional runner, obviously, but the chance alone can change how people think about their future.

Looking Ahead

Running is not a complete solution to poverty in Kenya, but it does help create opportunities. For people in areas with limited job options, it can offer a different path. As more programs continue to grow and connect athletes to greater opportunities, running will likely remain an important part of economic growth in certain communities. It is not perfect, but for many people, it is a start.

– Aaron Scott

Aaron is based in Charlotte, NC, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr