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Safaricom’s Job Expansion Is Critical for Combating Poverty

Safaricom’s Job ExpansionIn a move to fight competition, Safaricom in Kenya expanded its technical staff by hiring 400 employees with one new deal. The deal, completed in July 2022, will not only create new jobs for Kenyans and open the door for future employment but also will improve Kenyans’ access to technology. Nationwide access to the internet and reliable technology is critical to fighting poverty in Kenya.

Safaricom and its Role in Kenya

Safaricom is a mobile network and internet company based in Kenya. The company hires directly for countless fields, including tech, cybersecurity, commercial, corporate and more. Indirectly, the company is responsible for sustaining thousands of jobs, almost millions, of jobs. Indirect jobs, like contractors, have connections to the production or maintenance of a company’s products. Indirect jobs are also ones where someone’s business or employment is reliant on the services that the company produced. The jobs are indirect because they result from Safaricom’s internet spread or use of Safaricom’s technology and would not exist without Safaricom. Safaricom operates in at least 10 other countries, with recent expansions and more to come.

Allot, a secondary company that tracks cybersecurity and reliability, described Safaricom stating that “With 29 million connections, they are the largest telecommunications provider in Kenya and one of the most profitable companies in the East and Central African region.” In the fiscal year 2020-2021, Safaricom contributed $4,642,499,981.43 in earnings to Kenya’s gross domestic product (GDP). Safaricom’s earnings amount to almost 5% of Kenya’s entire GDP. The economic impact of Safaricom’s work is indisputable, and Safaricom’s job expansion exemplifies its effects on technology usage and poverty reduction in Kenya.

Technology in Kenya

Kenya has the “best e-infrastructure in Africa,” making the country known for its technological development and innovation. Kenya’s information, communications and technology sector (ICT) is at the core of Kenya’s government’s latest projects to strengthen the country’s economy. The World Bank has reported that the ICT sector in Kenya still requires significant work to increase its impact on Kenya’s economy and to completely help its poorer citizens.

In April 2022, Kenya’s government created and began implementing the Digital Master Plan 2022-2032. Safaricom will be one of the companies tracking the Master Plan and its progress, specifically regarding data usage. The plan outlines goals, strategies and necessary steps to have Kenya align with global technological infrastructure advancements, and to strengthen and secure Kenya’s “digital economy.” A digital economy is the economic income and improvements from technology use, online activities and all the businesses that depend on the use of technology to strengthen their work and employee retainment. The Digital Masterplan, while not a direct plan to decrease poverty rates or unemployment rates, is meant to enhance the economy, which will result in reduced rates.

One of the key technological advancements in Kenya is the use of M-Pesa. M-Pesa stands for “mobile pesa” and allows users of M-Pesa to make secure transactions from their phones. Vodacom, a partner of Safaricom, and Safaricom itself produced M-Pesa first in 2007. M-Pesa has become a critical connector between rural and urban Kenya. It pre-dated apps such as Venmo and Paypal and has been a part of daily life with further expansions underway. M-Pesa is one of the primary technological tools in Kenya that have lifted thousands out of extreme poverty. Safaricom’s job expansion will help even more escape poverty once the expansion is underway.

Poverty in Kenya

Extreme poverty is when a person lives on less than $1.90 daily. Kenya’s extreme poverty rates were at their highest at 21% in 2016 but have since dropped to 17% as of 2022. Projections for Kenya’s poverty rate show the percentage of Kenya’s population in extreme poverty decreasing to 14% by 2025.

Poverty in Kenya has many causes including lack of education, poor health, and, as technology becomes a key source of income and infrastructure for Kenya, a digital divide. The World Bank noted that 44% of the urban population has access to the internet, compared to the rural population’s meager 27%. Older Kenyans know there are not enough basic skills for technology usage, especially in rural areas. The lack of skills will result in their being economically disadvantaged as technology becomes Kenya’s dominant source of income. Younger age groups are beginning to participate in courses in technology usage or computer science. However, not enough of the older Kenyan population, who struggle to escape poverty, are learning these skills. This is furthering the poverty rates and the technology divides.

Safaricom’s Work In Kenya and Its Future Impact

Safaricom’s job expansion continues the work of the company’s efforts to fight poverty and reduce unemployment rates. Safaricom has created access to financial services for almost 80% of Kenyans. Before Safaricom began operations, the number of Kenyans with access to financial services was 20%. Safaricom has closed education gaps by providing updated technology to schools or has supported local communities or refugees as they find their footing. The technology demand is growing in Kenya, and Safaricom’s job expansion of 400 new employees for the tech team will help meet these demands.

M-Pesa, a product of the tech team, has become one of Safaricom’s most economically valuable ventures, connecting poor rural Kenyans with financial services and mobile usage. M-Pesa earned Safaricom $896,454,132.48 in 2020-2021.

Safaricom is hiring new employees to meet demand and further the company’s reach with M-Pesa and projects like it. Safaricom’s job expansion might seem small. Safaricom is hiring 400 new workers compared to the 6,230 the company already has working as full-time, part-time or contract workers. However, the new workers are invaluable to the company and its ability to serve those who have become reliant on the company and its technology. Safaricom’s job expansion might not seem like a grand move, but there are now 400 tech developers who will benefit from a steady income. There will also be thousands more Kenyans lifted out of extreme poverty by Safaricom’s projects and technology advancements that rely on these new 400 tech developers.

– Clara Mulvihill
Photo: Flickr

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How One Company Empowers Entrepreneurs in Africa

entrepreneurs in AfricaThe Baobab Network is an investment company dedicated to empowering small business owners across the African continent. Many countries in Africa including Ethiopia, have incredibly fast-growing economies. While aid has been a long-standing form of economic assistance to many of the low-income countries in Africa, small entrepreneurs in Africa often lack access, connections and funding to reap those benefits. The Baobab Network does more than just throw money into the economy. The company gets tech-focused businesses off the ground to sustain their communities.

The Baobab Network’s Mission

The baobab tree is infamous across sub-Saharan Africa and a true symbol of the company’s philosophy. With an emphasis on the power of technology, The Baobab Network seeks to build sustainability in the untapped marketplaces. What’s more, these solutions are working to solve some of the continent’s most pressing issues.

The strategy used by The Baobab Network to build up small businesses is three-pronged. The strategy starts with a $50,000 investment, an intensive venture consulting regimen and access to an entire network of experts, investors and potential business partners. Capital is necessary for small businesses, especially those looking to break into a market where there was little opportunity as the technology and service sectors are underdeveloped in many regions of sub-Saharan Africa. This funding can be used to invest in the right people, the right equipment and the right business plan. Continued involvement in the early stages of the businesses that The Baobab Network supports ensures that growth is achieved. Capacity-building in the beginning, coupled with lifetime access to global support allows business owners in Africa to continue to grow their companies and contribute to the development of their communities.

Portfolio Companies

The companies that The Baobab network has invested in are achieving creative, groundbreaking solutions. For example, FXKudi, a company started by Abioye Oyetunji, Adetunji Afeez and Kodjo Kevin is connecting the West African marketplace through technology. FXKudi operates in six countries and allows people to spend, send and receive money through an app on their phone, allowing buyers and sellers to interact across borders. While countries in West Africa are close together geographically, they lack a strong interconnectedness, especially in their economies. This has shifted in recent years, and Brookings reports that cross-cultural engagement in Africa can be a vessel for economic rebuilding.

Thola is another successful company in The Baobab Network, started by a woman named Nneile based in South Africa. Thola champions “peer-to-peer lending,” connecting small business owners including livestock farmers to access to capital without the discouraging red tape. The company believes that simplifying relationships between lenders and investors is the best way to build community and achieve growth.

A number of other Baobab Network companies are doing great things including creating education marketplaces and digitizing manufacturing industries. The company focuses exclusively on African candidates and yet many of the companies are reaching a worldwide audience.

A Look Ahead

The Baobab Network is doing important work all over the continent. African entrepreneurs from Ethiopia to Sudan have the opportunity to secure investment and change their futures. Additionally, it is clear that the growth of self-sustaining businesses that are looking to the future of technology will have positive implications for the growth of the entire economy. Empowering one empowers many and The Baobab Network’s portfolio of successful companies could be changing the world.

– Hannah Yonas
Photo: Wikimedia

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Argentina’s Economy Minister Resigns

Argentina’s Economy MinisterOn July 2, 2022, Martín Guzmán announced his resignation from his position as Argentina’s economy minister, which he held since December 2019, through a seven-page letter posted on his Twitter account. The decision arrived amid conflict in the government concerning the country’s current economic crisis and Argentinian Vice President Cristina Fernández de Kirchner pushing for Guzmán to leave his position. Guzmán alluded to recent disagreements “within the government coalition” as a reason for his departure. Many members of his team have also resigned.

Guzmán’s Career

On December 6, 2019, Argentine President (then-president-elect) Alberto Fernández designated Guzmán as Argentina’s economy minister. At the start of this career, the newly appointed Brown graduate had his first bill approved by the Senate just 11 days after his first day in office. The bill imposed tax increases in specific areas of the middle and upper class while providing tax benefits to the impoverished.

In early August 2020, the Argentine economy minister struck a deal to restructure $65 billion in foreign bonds. Most notably, the former minister engineered a $45 billion debt deal with the International Monetary Fund (IMF). The agreement aims to “promote growth and protect social programs” to tackle Argentina’s economic crisis.

Before resigning, Guzmán planned to head to France to discuss a $2 billion debt deal with the Paris Club of sovereign lenders.

Argentina’s Economic Crisis

Argentina’s economy has been suffering for decades. In July 2022, many Argentine sovereign bonds were worth as low as 20 cents on the dollar — a stark difference from higher rates in October 2020. Inflation in Argentina is staggeringly high, moving toward 70% by the end of 2022. As of July 2022, one United States dollar is worth about 126 Argentine pesos and this exchange rate is still increasing.

An economic disruptor includes truck drivers’ strikes, which have halted delivery of grain, “one of Argentina’s main imports,” to ports. In addition to the COVID-19 pandemic, the devaluation of the peso and a sizeable foreign debt of more than $323 billion by 2020 have sent Argentina into further economic turmoil.

Alongside these struggles, Argentina’s poverty levels are sharply increasing. Due to the severe inflation, the poverty rate in urban centers stood at 37% in the latter half of 2021 and is expected to increase to 39% after the first six months of 2022. This would equate to 500,000 more impoverished people.

The Economy’s Future

Guzmán’s resignation has raised concerns over the economy’s trajectory, most fearing it will head in an even worse direction. Other concerns regard Guzmán’s IMF deal and whether Argentina can meet these needs without the architect of the deal.

On July 3, 2022, one day after Guzmán’s resignation, President Fernández named Silvina Batakis Argentina’s new economy minister. Batakis previously served as the Secretary of Provinces in the Ministry of the Interior and as economy minister of the Buenos Aires province from 2011 to 2015. This week, she stated her belief in “fiscal balance” and her intention to follow President Fernández’s economic program.

In June 2022, the deal with the IMF that former minister Guzmán crafted underwent its first review. This is a sign that the deal may indeed make progress and ultimately come to fruition. A press release regarding this step stated that the program’s policies “will be critical to support Argentina’s economic recovery.”

There are other solutions and aids to Argentina’s economic crisis besides the appointment of a new economy minister — foreign aid. Amid this instability, at least 48 NGO projects in Argentina aim to improve the lives of the country’s poor. A notable organization is Fundación Integrar (Integrate Foundation). The foundation helps young Buenos Aires and La Pampa citizens living in poverty complete their higher education by providing financial aid and guidance to students. With the help of donations, the foundation has given higher education scholarships to 140 students to date.

In office, Argentina’s new economy minister Batakis will need to address the nation’s high inflation rate and foreign debt along with an increasing poverty rate. Yet, she is not alone in this fight — a deal with the IMF is underway and tens of organizations are serving the country’s poor.

– Sophie Buibas
Photo: Flickr

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Food, Fuel and Finance Crisis in Sri Lanka

Crisis in Sri LankaSri Lanka is experiencing an economic crisis of massive proportions.  The U.N. has dubbed it a “food, fuel and finance crisis” that is endangering millions of people. This economic crisis has been building since the onset of the COVID-19 pandemic, but it has recently culminated in a massive fuel shortage that has paralyzed the economy. The food, fuel and finance crisis in Sri Lanka is an indicator of a worldwide trend of rising prices, resource shortages and civil unrest.

Desperation and Unrest in Sri Lanka

Countries all over the world, both developed and developing have experienced the economic and social shocks of the pandemic and the war in Ukraine. Many nations are fearing a looming recession, poor health care resources amidst the pandemic and a slowing job market. For developing countries, this means a nearly complete depletion of food, energy, economic stability and COVID-19 response.

The U.N. found that three months of consistent heightened inflation have caused around 71 million people to fall into poverty. The citizens of many developing countries, including Sri Lanka are turning to public political turmoil out of desperation.

Since the end of June, Sri Lanka has been experiencing one of the worst fuel shortages in history. The demand for fuel is so high and the supply is so low that people often have to wait in line for over two days to fill their tanks. One woman said that she spends more than half of her income on fuel.

The Sri Lankan government has demanded that anyone who can must work remotely, schools have been shut down and public transportation services are almost completely stopped, according to The Business Standard. The country has essentially come to a complete standstill.

This fuel crisis comes alongside a prolonged economic catastrophe in Sri Lanka, in which citizens have been facing severe shortages of medicine and inflation that has skyrocketed to 55%. Sri Lankans are also experiencing governmental uncertainty, as their president resigned after a series of protests. The food, fuel and finance crisis in Sri Lanka also comes from a history of debt defaulting and account deficits. Sri Lanka’s economy and exports have been unstable since the 1980s and they are now crumbling as a result of the war in Ukraine, The Business Standard reports.

The Crisis in Sri Lanka is Apart from a Larger Trend

The crisis in Sri Lanka is an indicator of a more widespread food, fuel, and financial crisis that is seriously harming many low-income countries. The U.N. Office for the Coordination of Humanitarian Affairs is claiming that the war in Ukraine is causing a wave of rising prices for essential commodities – food, fuel, medicine and energy – that are plunging millions into a standard of living crisis. The crisis put in danger about 1.6 billion people in 94 countries.

In the Middle East and North Africa, the livelihoods of 2.8 million people are threatened by this crisis and over 500 million people in Asia are exposed to the food and finance crisis, according to the U.N.

International Organizations Attempt to Break the Cycle of Crisis

International organizations like the U.N. and the International Monetary Fund (IMF) are not ignoring the crisis in Sri Lanka and other countries, but they are not doing enough to help either. In order to avoid further civil unrest and slow the growing numbers of people experiencing extreme poverty, international organizations could focus on multilateral investments that pay more in capital and are focused specifically on targeted lending and crisis response measures, the U.N. reports.

The U.N. has employed its Global Crisis Response Group to administer targeted cash transfers directly to the affected countries as a form of direct aid.

Going Forward Amidst a Global Crisis

There has been widespread suffering globally due to the COVID-19 pandemic and the war in Ukraine.  However, low-income and developing countries are experiencing record-breaking levels of hunger and lack of resources. The Secretary General of the U.N. believes that solving the global crisis is not possible without first paying attention to the economic crisis in developing countries.

People in low-income countries are in desperate need of food, economic support, fuel and adequate health care. Hopefully, international organizations and high-income countries can step in and help.

– Ella DeVries
Photo: Flickr

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COVID-19, Poverty and The Debt Service Suspension Initiative (DSSI)

COVID-19, Poverty and The Debt Service Suspension Initiative (DSSI)
In the wake of its continuing devastation, Covid-19 has left, among other things, recessions across the world’s poorest countries. These recessions threaten to push more than 100 million people below the $1.90-a-day threshold that defines extreme poverty. To prevent poverty exacerbation, G20 countries have been called on by the World Bank and the International Monetary Fund to establish the Debt Service Suspension Initiative (DSSI). The initiative is designed to redirect funds planned for debt liquidation towards battling the pandemic and helping the most vulnerable populations.

How Does It Work?

Established in April 2020, the DSSI allows the suspension of government-to-government debt payments for 73 eligible countries. Over 60% of these countries accepted the offer as of 2021. The International Development Association and the U.N.’s respective lists of least developed countries encompass all countries cleared for suspension, minus Angola. Qualification for deferment also requires an application for an arrangement with the IMF, along with a commitment to use unfettered money towards social, health, or economic spending designed to remedy the effects of Covid-19.

Including interest and amortization payments, the total sovereign debt servicing payments in 2020 was projected to reach nearly $14 billion. Less than $4 billion of that belongs to the Paris Club group, prompting calls for other creditors like China and Russia to take part. Additionally, the G20 received requests to include entities such as banks and investment funds in the initiative, but this call has yet to receive a favorable response. About $5.7 billion in payments were deferred in 2020, with an additional deferment of $7.3 billion planned for June 2021.

The Unturned Stones

Reservations have been voiced regarding the ability of the temporary cessation of bilateral debt payments to provide adequate relief for the countries concerned. All debt is not the sovereign debt that is accounted for in the DSSI, and the fiscal ability of the approved countries is largely insufficient to weather the inclemency of Covid-19, even with debt deferment. At the vanguard of the call to private-sector creditors to adopt the initiative is the Institute of International Finance (IIF), a global association concerned with the finance industry.

Estimations from the IIF show that participation by private-sector creditors would provide an extra $13 billion in deferment. This would offer significant potential relief from the $35.3 billion owed collectively by the countries eligible for the DSSI. However, the IIF has made its concerns clear, particularly concerning the DSSI’s lack of consideration for the unique situation of each debtor country and the doubt that this causes for private-sector creditors.

The overall narrow eligibility scope of the DSSI has also been called into question. Middle-income countries have over eight times the amount of collective external debt outstanding compared to DSSI eligible countries. With $422.9 billion in debt payments in 2020 alone, these countries also run the risk of being financially incapable of dealing with Covid-19. After foreign investors pulled approximately $100 billion from middle-income countries’ markets in stocks and bonds, capital outflows leveled. The IIF, perhaps because of this observation, projected that the countries in question will encounter difficulties in borrowing money. The IIF also made projections that indicated unparalleled fiscal deficits in 2020.

Possible Solutions

Currently, no mechanism is in place to ensure that deferred debt payments will be used accordingly. One proposal involves the creation of a central credit facility (CCF) at the World Bank. This organization, if allowed, would require countries requesting relief to deposit deferred interest payments to certify that the funds would be used to negate the effects of the pandemic. Although the CCF has gained academic support and press recognition, whether countries will adopt it is uncertain.

Corporate or individual bankruptcy for countries is not an option.  The IMF attempted but failed to establish a sovereign resolution regime with its Sovereign Debt Restructuring Mechanism (SDRM) proposal in 2002, ultimately because of conflicting opinions on how to structure its design. A notable implementation of a debt moratorium occurred in 1931 by Herbert Hoover, then President of the United States. His declaration was followed by a rush of countries defaulting. Although these countries recovered faster than countries that did not default, such countries were hard-pressed to find any foreign lending for more than 20 years after defaulting.

Forging A Way Forward

While COVID-19 inflicted disastrous financial difficulties on nations worldwide, initiatives like the DSSI work to counteract the damage. In April 2021, G20 government-to-government creditors extended the DSSI for the final time by six months, taking its activity through December 2021. Despite concerns about its implementation and consequences, the DSSI represents a positive attempt by creditors nationwide to help the most vulnerable in the wake of COVID-19.

– Mohamed Makalou
Photo: Unsplash

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Egyptian Economy Fighting for Momentum

Egyptian EconomyEconomies worldwide have been hit hard by the pandemic. However, few have been able to come out positively. The Egyptian economy has been able to make meaningful economic progress, such as through GDP growth, throughout 2020 and 2021. As it is working toward poverty reduction, Egypt is an example of how to keep an economy steady. Egypt has been fighting poverty for more than a decade now – a third of Egyptians live in poverty and half of the population is either in or near poverty.

Egypt’s Economic Steps

The Egyptian economy has taken economic hits in the past several years. However, that does not mean recent steps are not worth mentioning. Egypt has recently seen poverty reduction for the first time in 20 years due to the reforms taken by the government. At the end of 2016, several economic reforms started a turning point for Egypt. The Economic Reform Program is made up of currency policies, decreasing dependence on fuel and electricity, increasing job opportunities (particularly for women), implementing structural business reforms, and endorsing economic acts to further progress. Certain moves also attracted many investors to Egypt, boosting the economy. Social programs targeted at more individual and community levels have also lifted 1,000 villages out of poverty. These broad economic reforms have also strengthened Egypt for the pandemic.

COVID’s Impact, and Fighting Through It

The past few years have had a monumental impact worldwide. Nearly every economic power has suffered a decline or a recession. One worry within Egypt is that the recent growth would collapse on itself. The pandemic did impact job creation and the private sector, but not enough to make a dent in progress. Previous actions have cushioned Egypt, such as the poverty rate going down from 32.5% to 29.7% in the fiscal year 2019-2020. This monumental victory for Egypt and for poverty worldwide took place over two years.

The Future of Egypt

Egypt Vision 2030 is the long-term future that is planned out for Egypt. As Salah Hashim, advisor for the Ministry of Social Solidarity for Political Policies, put it, “Egypt Vision 2030 has focused on promoting social justice, not only helping the poor and low-income people like before.” This shows that Egypt is willing to tackle injustice in multiple systems. The Egyptian economy should be an example for other countries struggling to build economic growth sustainably. While poverty is still abundant, this growth shows a bright future for Egypt’s economy and its future.

– Audrey Burran
Photo: Flickr

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How Starbucks is Fighting Global Poverty

Coffee Economics: How Your Cup of Starbucks is Fighting Global PovertyStarbucks is fighting global poverty. Their website boasts that they are “making coffee the world’s first sustainable product to improve the lives of at least 1 million people in coffee communities around the world”. How does this pertain to global poverty? It is simple – of the world’s poorest countries, many are also the top producers of coffee. Brazil, Vietnam, Colombia, Indonesia, and Ethiopia are the top 5 producers of coffee in the world. These 5 countries additionally experience some of the highest poverty rates in the world. Starbucks has undertaken the mission of giving back to those who laid the groundwork for what has made their business so successful for 50 years, the coffee farmers.

Global Farmer Fund

With the goal of turning coffee into a sustainable product, in 2008, Starbucks founded the Global Farmer Fund Program. Starbucks founded this program to aid coffee farmers in developing countries. Before the launch of the program, Starbucks actually provided its first loan to a farming project in Mexico in the year 2000. This first loan allowed Starbucks to see the effect that such a program could have for farmers in need in developing countries. At the inception of the program, Starbucks pledged to provide $20 million to coffee farmers in need. In 2015, Starbucks committed to providing an additional $30 million, raising the Global Farmer Fund to a $50 million-valued program. According to Starbucks, “By providing access to capital, farmers have the ability to make strategic investments in their infrastructure, offering the stability they need to manage ongoing complexities so that there is a future for them and the industry”.

Fairtrade International

In order to meet their sustainability goals, Starbucks also partnered with Fairtrade International. Fairtrade International’s website boasts, “We transfer wealth back to farmers and workers in developing countries who deserve a decent income and decent work. We are the leading independent global movement for trade justice, and we are still the most recognized and trusted sustainable trading standard in many leading markets.” Fairtrade International makes sure that coffee farmers are getting paid fairly for their work, and in return, farmers adhere to environmental and labor standards set by the organization.

Fighting Poverty

The production of coffee plays a major role in the global economy, particularly in regions that are home to many living below the poverty line. Sustainable coffee production allows for an ethical and lasting source of income that has the potential to not only lift many out of poverty but keep them above the poverty line for generations to come. With Starbucks supporting fair trade agreements, they are protecting the integrity of their company at the root, while also improving the lives of coffee farmers in developing countries. Support for companies that implement programs, such as the Global Farmers Fund, and acknowledgment of the impact they are making shows Starbucks is fighting global poverty with sustainable poverty reduction.

– Michelle M. Schwab
Photo: Unsplash

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Development in South Africa’s Vaccination Effort

South Africa’s Vaccination EffortAs COVID-19 cases soared in South Africa in June 2020, the country endured a severe lockdown. During this lockdown, 27-year-old Clementine gave birth to a baby boy, Lelo Matthew. With a mask covering her face in the delivery room, Clementine feared contracting COVID-19 while at the hospital. Fortunately, no one in Clementine’s family tested positive. Unfortunately, giving birth during a global pandemic gave Clementine more anxiety than the average new mother. Based on the experience, Clementine named her son for the word hope. It has been a year since Clementine gave birth to her son. South Africa’s vaccination effort coincides with rising COVID-19 infections and an economy threatened by COVID-19.

COVID-19’s Impact

Before the pandemic began, South Africa faced a recession. The closure of businesses and decreased consumer spending because of COVID-19 damaged the economy even further. In 2021’s first quarter, the unemployment rate in South Africa jumped to 32.6%. Specifically, the industries with the most prevalent job losses included construction, trade, private households, transport, and agriculture. Trade accounts for nearly 20% of employment in South Africa, so the job losses in this industry are especially worrisome. This rising unemployment rate will likely cause more South Africans to fall into poverty as 10.3 million South Africans already live below the international poverty line of $1.90 per day.

In June 2021, South Africa remained the most COVID-19-affected country in Africa. As this “third wave” caused devastation, the South African government enforced a minimum lockdown of 14 days starting on June 27, 2021. Measures included school and restaurant closures and prohibited gatherings will occur.

A Promising Future

Although COVID-19 cases continue to flood the country, South Africa’s vaccination effort does not look bleak. A South African consortium is creating the first COVID-19 mRNA vaccine technology transfer hub in a historic decision. This technology will be possible with support from the World Health Organization (WHO). Through the establishment of this facility, manufacturers from developing countries will master vaccine production techniques. Additionally, the manufacturers will receive licenses to produce vaccines. Consequently, South Africa and other African countries will have greater access to COVID-19 vaccines. This access is a considerable feat, given South Africa’s current vaccination rate rests at less than 1%.

Afrigen Biologics, a biotech company, plays a critical role in the project as it will produce mRNA vaccines and educate Biovac, an additional manufacturer, in vaccine production. Soon, the WHO will be responsible for supervising the quality of COVID-19 vaccine production and implementation.

The True South Africa

While the leaders of this project foresee the vaccine hub taking critical leaps in South Africa’s vaccination effort, the hub also has implications for the future of South African medicine. WHO chief Tedros Adhamon anticipates that the hub will be essential in COVID-19 vaccine production and the production of future vaccines. The hub could create remedies that impoverished individuals struggle to access, an achievement that is especially opportune as the unemployment rate of South Africa and other African countries rises.

South Africa’s president, Cyril Ramaphosa, sees the hub as having large-scale benefits for Africa’s portrayal. Ramaphosa remarked that the world often stigmatizes Africa as the center of disease and poor development. The innovations of this hub will provide African countries with the opportunity to correct the globe’s inaccurate perception.

In Ramaphosa’s words, Africa is “on a path to self-determination.” This vaccine technology transfer hub only brings South Africa and other African countries closer to demonstrating that fact to the rest of the world.

– Madeline Murphy
Photo: Flickr

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Poverty in the UK Fought Through Film

The United Kingdom is known for being a popular city for tourists with sites, such as Big Ben, the London Eye and Buckingham Palace. However, what may not be as well-known is the fact that the UK struggles with a significant class difference. It has an ever-widening gap between the poor and the affluent, which leads to high rates of poverty in the UK, specifically for children.

Child Poverty

Child poverty is one of the most notable effects of overall poverty in the UK. This poverty crisis struck Britain hard in 1999. Its child poverty proportion became the highest out of all of the western European countries.

In 2016-17, poverty impacted nearly 30% of children — 4.1 million — in the UK. In the following year — 2018-19, the number of children in poverty in the UK increased by 100,000. The trend is on an upward spike rather than its 2003 downward rate when child poverty was made a priority. Poverty in the UK needs to be addressed, especially among the youth. It leads to increased hardships in life from education to mental and physical health to employment and so much more.

Use of the Film Industry

Films produce major results in ending poverty. The film industry has positively impacted poverty in the UK in many ways. For one, the film industry creates many job opportunities. In 2009, the core UK film industry created or impacted nearly 100,000 jobs relating to film production, sales and tourism. Furthermore, portrayals of the UK in films contribute heavily to tourism and yearly account for about £1.9 billion. That brings the total UK film industry contribution in 2009 to raising the GDP by more than £4.5 billion.

The improved economy can be a promising solution for aiding the UK’s children out of poverty. The country can use the funds to help out the struggling citizens, focusing specifically on the poor. In this way, films pose as a promising solution for poverty aid in other countries as well.

“Poor Kids”

The amount of money and the impact the film industry has on the UK is astounding and a promising solution for poverty. However, the impact one film made for children in poverty is even more remarkable.

The film, “Poor Kids,” has made great strides toward improving the lives of impoverished UK children. The film illustrates the living situations of three families in poverty through the lens of the children. Courtney (age 8), Paige (age 10) and Sam (age 11) give detailed and heart-wrenching accounts of their experiences growing up in poverty. The film received much acclaim. It was a Broadcast Best Documentary Nominee, a Learning on Screen Nominee, a Televisual Bulldog Best Documentary Nominee and received the Chicago Film Festival Gold Plaque for Social and Political Documentary in 2012.

Films awards aside, “Poor Kids” sparked change in the community. Make Lunch is a program that began after Poor Kids debuted as a direct result of the film. The program contributes free meals to children during the times when school is not in session and when children could potentially go for a long period without food. In the summer of 2012, as many as 13 lunch kitchens were providing the free lunches.

And That’s A Wrap

The effects of poverty in the UK are prevalent, notably in the large number of impoverished children. The worsening situation provides a sense of sorrow to the country, but a solution presents itself. Films not only contribute to the wealth of a country, but they provide jobs as well. Both of these aspects could be potential resources to utilize when fighting poverty.

Additionally, films bring about emotion, and that creates change. The inspiration that “Poor Kids” ignited contributed to a charity that helps the children in poverty. With results, such as the Make Lunch program, films can yield great benefits for poverty in the UK and the world.

– Hailee Shores
Photo: Flickr

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Ecovillages: The New GENeration of Poverty Reduction 

EcovillagesGreen growth refers to economic growth through the use of sustainable and eco-focused alternatives. These “green” alternatives benefit both the economy and the environment all while contributing to poverty reduction. Ecovillages are a prime example of an environmentally conscious effort to address global poverty. They are communities, rural or urban, built on sustainability. Members of these locally owned ecovillages are granted autonomy as they navigate a solution that addresses the four dimensions of sustainability: economy, ecology, social and culture.

The Global Ecovillage Network

The Global Ecovillage Network (GEN) recognizes that all four facets of sustainability must be addressed for maximum poverty reduction. Solely focusing on the economic or environmental impact will not yield optimal results. Embracing, not eliminating, the social and cultural aspects of sustainability should the aim of all communities in order to move toward a better future.

The development of sustainable communities around the globe is a commitment of the GEN. The organization’s outreach programs intend to fuel greater global cooperation, empower the citizens of the world’s nations and develop a sustainable future for all.

Working with over 30 international partners, GEN focuses on five defined regions. GEN Africa was created in 2012 and has overseen developments in more than 20 communities across the continent.

A Focus on Zambia

Zambia is one the countries garnering attention. Over half of Zambia’s population — 58% — falls below the $1.90 per day international poverty line. The majority of the nation’s impoverished communities live in rural regions.

Zambia’s government addresses these concerns by integrating the U.N.’s sustainable development goals into its development framework. With a focus on economic and ecological growth, Zambia could lay the groundwork for the success of its’ ecovillages.

Planting the Seed

The Regional Schools and Colleges Permaculture (ReSCOPE) Programme recognizes youth as the future keepers of the planet. As well as Zambia, the program has chapters in Kenya, Malawi, Uganda and Zimbabwe. The focus is on establishing regional networks to strengthen sustainable efforts. The Zambia chapter along with its 17 newly joined organizations work toward the goal of educating and encouraging communities to find sustainable methods of food production.

ReSCOPE seeks to connect schools and their local environments through the Greening Schools for Sustainable Communities Programme. The program is a partnership between GEN and ReSCOPE and has received funding from the Scottish government. Through education and encouraging sustainable practices, Zambia’s youth have an active role in ensuring future growth.

Greening Schools

Greening Schools strengthens the communities of four schools — the centers of resilience and a source of community inspiration. Beginning with nutrition and food security, students are able to play a part in developmental change. Their hard work includes planting of hundreds of fruit trees. The schools became grounds for hands-on agricultural experience and exposure to the tending of life.

However, the impact was not restrained within the schools. The greening schools inspired local communities to make seed security and crop diversification a commitment. In 2019, these communities “brought back lost traditional crops and adopted intercropping and other agroecological practices.”

As part of their sustainable development goals, the U.N. recognizes the value of investing in ecovillages. Goals 11 and 12 stress the importance of sustainable communities and responsible consumption and production respectively. Educating and advocating for youth to take part in ecovillages addresses this matter.

Coming generations will determine the future, and the youth wield the power to address global concerns like sustainability and poverty. Ecovillages are a great new way to break the cycle of poverty.

– Kelli Hughes
Photo: Unsplash