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5 Things To Know About Higher Education in the Bahamas

Higher Education in the BahamasThe Bahamas, a nation known for its stunning beaches and vibrant culture, faces unique challenges and opportunities in its higher education system. While poverty poses significant barriers, ongoing efforts and systemic strengths offer hope for a brighter future. 

Low Graduation Rates Pose Challenges

The Bahamas struggles with worryingly low graduation rates at the university level due to socioeconomic factors, academic challenges and other circumstances. Additionally, only 7% of students at the University of The Bahamas are studying science and technology-related courses. This lack of focus on key fields limits the country’s ability to diversify its economy, leaving the tourism sector the dominant growth driver.

Poverty as a Barrier to Access

Approximately 25% of households in The Bahamas experience poverty, especially those led by individuals with no formal education. Many families cannot afford the costs associated with university or college attendance, including fees, books and living expenses. 

Limited scholarship opportunities and financial aid programs mean students from disadvantaged backgrounds often do not pursue higher education entirely. Ultimately, this deepens social inequality and prevents talented individuals from underserved communities from reaching their full potential.

A Structured Education System With Potential

The Bahamian education system, modeled after the British framework, provides a structured pathway to higher education. Students complete The Bahamas General Certificate of Secondary Education (BGCSE) before pursuing advanced studies at institutions like the University of The Bahamas.

However, The Bahamas has only one public university, making it highly competitive for students, especially those from low-income households, who cannot afford to study in private institutions or abroad.

Growing Educational Attainment Offers Hope

Despite challenges, the higher education system in the Bahamas is progressing. The percentage of Bahamians aged 25 and older with at least a bachelor’s degree has risen steadily, reaching 15% in 2010 from 0.3% in 2000.

While still low compared to global standards, this upward trend reflects increasing access to higher education and a growing recognition of its value. 

Future Opportunities Through Innovation and Investment

The future of higher education in The Bahamas is promising, with opportunities to overcome poverty-related barriers through innovation and investment. The government and private sector are exploring partnerships to fund scholarships, improve infrastructure and integrate technology into classrooms. 

These efforts aim to equip students with the skills needed for a more diversified economy beyond tourism.

A Path Forward

Higher education in The Bahamas faces significant hurdles, particularly for students experiencing poverty. Yet, the nation’s structured system, rising attainment rates and commitment to innovation provide a foundation for hope. 

– Sydney Carr

Sydney is in San Diego, CA, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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Iraq’s Reconstruction and Development: Markets for UK Firms

Iraq’s Reconstruction and DevelopmentBeginning in 1980, Iraq endured years of conflict, including the Iraqi-Iranian War, the Kuwait Invasion, the U.S.-led military invasion and ethnopolitical violence. After the U.S.-led invasion, Iraq’s annual gross domestic product (GDP) growth dropped from -8.2% in 2002 to -36.7% in 2003 when the invasion began.

Poverty became a major concern and as of 2024, 17.6% of the population still lives below the poverty line, a decline from 21.5% in 2022. The government is taking steps toward Iraq’s reconstruction and development in light of these challenges. In January 2025, Prime Minister Mohammed S. Al-Sudani met with prominent U.K. business leaders to showcase the steps Iraq is taking to improve the investment climate.

Iraq’s Reconstruction and Development Efforts

During the Iraqi-Iranian War, Iraq accumulated significant debt. After the war, Iraq invaded Kuwait, which made the United Nations (U.N.) place severe sanctions on Iraq. The sanctions banned all imports and exports with Iraq, which rendered Iraq unable to obtain building materials from abroad to begin reconstruction.

In the following years, the U.S.-led invasion and ethnopolitical violence further deteriorated the remaining infrastructure, strained the economy and displaced countless Iraqis, pushing many into poverty. After the 2003 invasion, very little was done to support Iraq’s reconstruction and development. It was after the Islamic State in Iraq and Syria (ISIS) was defeated in 2017 that the prime minister announced that the rebuilding effort would require $88 billion.

The destruction covered around 80% of some cities and significant funding was required to remove the war remnants, including unexploded bombs, land mines and IEDs that had remained after the conflict.

The National Development Plan

However, in 2018, Iraq released its National Development Plan, which included a reconstruction and development framework for 2018-2030. The plan comprises 19 pillars that will target areas like education, employment, industry, social protection, health and more. The plan highlights many areas that can improve the quality of life for its citizens and promote economic growth.

Some of these include clearing “explosive hazards,” rebuilding damaged housing and buildings, upgrading electricity infrastructure and strengthening transportation and logistics services to encourage private sector recovery and expansion. It also involves initiating labor force surveys to identify the workforce’s needs, enhancing local inclusive governance and planning community needs, including those of displaced persons, youth and women.

Iraq-UK Partnerships and Investment Opportunities

In January 2025, Iraq’s Prime minister met with U.K. business leaders to explain the country’s plan to attract foreign investment and improve the Iraqi business environment. The two countries signed a Partnership and Cooperation Agreement (PCA), including a range of export agreements and a trade deal of more than $12 billion. This agreement built upon a history of economic collaboration between Iraq and the U.K.

In 2024 alone, the U.K. participated in $1.5 billion worth of projects in Iraq. One notable initiative was a partnership with Vodafone, a multinational telecommunications company based in the U.K. In late 2024, Iraq authorized Vodafone to launch the country’s first 5G network, marking a significant step in the nation’s technological advancement. Beyond telecommunications, U.K. firms have expanding prospects in the construction, petrochemicals and energy sectors. In Iraq, building material accounts for around 30% of imports. Additionally, natural gas projects are progressing in nearly every oil field in the country, providing opportunities for U.K. firms.

During the meeting, the Prime Minister of Iraq also explained that “Reforms have been carried out in the taxation and customs systems, company registration processes and all approvals related to investment opportunities.” Alongside these reforms, Iraq will provide sovereign guarantees to the private sector, utilize “global intermediary banks” to conduct all financial transactions and allocate $100 billion to the investment budget. These reforms and financial commitments create an environment where U.K. firms can significantly contribute to Iraq’s economic growth and poverty reduction.

Conclusion

Iraq’s efforts to attract foreign investment, particularly through its U.K. partnership, are key to stimulating economic development and reducing poverty. U.K. firms can help those living under the poverty line in Iraq by contributing to construction, energy and petrochemical-based projects. Improved roads, ports, electricity and overall economic conditions can provide Iraqis with increased access to new markets domestically and internationally. The World Bank highlights that trade and investment can stimulate developing economies, increase higher-quality job opportunities and raise productivity.

With 60% of Iraq’s population falling within the working-age bracket (15-64), the country presents U.K. firms with a substantial labor force. Beyond economic benefits, this also creates an opportunity to address social challenges. Expanding employment prospects can help prevent youth from being pushed into violence, terrorism and poverty due to a lack of quality job opportunities, fostering greater stability in the region.

– Haley Parilla

Haley is based in Cape Coral, FL, USA and focuses on Business and Politics for The Borgen Project.

Photo: Pexels

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Top 10 Sectors Attracting Foreign Investment in Nigeria

Foreign Investment in NigeriaIn Q1 2024, Nigeria’s foreign capital inflows surged to $3.4 billion, the highest since early 2020, reflecting renewed investor confidence driven by fiscal and monetary reforms. The economy grew by 2.9% in 2023, though inflation soared to 28.9% and the poverty rate increased to 46%. Foreign Portfolio Investments dominated, accounting for 61.5% of inflows, driven by Treasury bill investments. However, Foreign Direct Investment remained low at 3.5%, limited by security and infrastructure concerns in Nigeria.

The banking sector attracted $2.07 billion, but long-term investments in key growth sectors lagged. “Other Investments” rose sharply, raising concerns about reliance on foreign loans. Sustainable growth hinges on addressing exchange liquidity, boosting oil exports and improving infrastructure to attract more FDI. Nonetheless, based on first-quarter performance in 2024, here are the top 10 sectors attracting the most foreign investment in Nigeria:

  1. Banking: The banking sector led the pack with a staggering $2.07 billion in foreign investment, a 629.88% rise from Q4 2023 and a 579.19% increase compared to Q1 2023. The sector’s resilience and central role in the economy make it an attractive investment avenue for foreign capital.
  2. Trading: Trading experienced substantial growth, with $494.93 million in investments—a 645.92% increase from the previous quarter and a 440.75% surge compared to Q1 2023. The sector’s expansion showcases growing investor confidence and the increasing volume of trading activities across Nigeria’s markets.
  3. Telecommunications: Despite a 5.57% decline from Q4 2023, foreign investments in telecommunications amounted to $191.57 million in Q1 2024, an impressive 768.91% increase year-on-year. This underscores continued interest in Nigeria’s telecommunications infrastructure as digital connectivity improves.
  4. Production and Manufacturing: Although the production and manufacturing sectors saw a 57.37% decline from Q4 2023, they still attracted $191.92 million in Q1 2024. Despite ongoing challenges, this sector remains vital to Nigeria’s economic potential.
  5. IT Services: IT Services garnered $171.7 million in Q1 2024, reflecting a 1,789.75% increase from Q4 2023. However, this investment is 20.52% lower than in Q1 2023, indicating some fluctuation in investor sentiment toward Nigeria’s tech sector.
  6. Shares: Investments in the shares sector totaled $98.71 million in Q1 2024. This marked a 91.86% increase from Q4 2023. Furthermore, this is an 11.52% growth compared to Q1 2023, signaling investor confidence in Nigeria’s stock market.
  7. Financing: The financing sector attracted $75.55 million, despite a 44.29% decrease from Q4 2023 and a 36.35% decline year-on-year. Nonetheless, financing remains a critical component of Nigeria’s economic framework.
  8. Electrical: Investments in the electrical sector reached $58.93 million, marking a 15.71% increase from Q4 2023 and a 698.24% surge from Q1 2023. This reflects the growing demand for improved electrical infrastructure.
  9. Agriculture: Foreign investment in agriculture soared by 3,666.67% from Q4 2023, reaching $15.8 million in Q1 2024. This dramatic increase highlights renewed interest in Nigeria’s agricultural potential, vital for food security and economic diversification.
  10. Transport: The transport sector saw a significant rise, with investments totaling $5.05 million, up from just $0.14 million in Q4 2023—a 3,507.14% increase. Although still lower than the same period in 2023, this uptick signals a recovery in a critical sector for Nigeria’s infrastructure and connectivity.

Conclusion

Nigeria’s foreign capital inflows in Q1 2024 showcase a significant rebound, driven by the government’s fiscal and monetary reforms. These reforms are aimed at bolstering investor confidence. While the banking and trading sectors dominated foreign investment in Nigeria in 2024, key industries like telecommunications, agriculture and manufacturing also witnessed notable growth. Indeed, this underscores Nigeria’s potential as a diversified investment destination. However, the concentration of Foreign Portfolio Investments and the continued reliance on external borrowing raise concerns about long-term economic stability.

To sustain growth and attract more Foreign Direct Investment (FDI), Nigeria may need to prioritize enhancing infrastructure, addressing regulatory bottlenecks and improving the overall investment environment. If these challenges are tackled, the nation can position itself as a thriving hub for short- and long-term foreign investment. The country will be able to foster sustainable economic growth and job creation.

– Laila Alaya

Laila is based in Abuja, Nigeria and focuses on Business and New Markets for The Borgen Project.

Photo: Wikimedia Commons

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Investing in R&D for Diseases in Africa

Diseases in AfricaThe world has become a global village and events in one part of it affect everyone in many ways. Depending on the event, the effects can be good or bad. The African continent is of immense significance. Neglected diseases like HIV, tuberculosis, malaria and other tropical diseases are not just problems in Africa; they are global challenges. Africa currently accounts for 20% of the global disease burden and that means both the loss of 630 million lives and $2.4 trillion in economic value yearly.

The United States (U.S.), as a global leader, holds a key position in global health security. It can further strengthen this position by allocating investments in Africa, particularly in research and development (R&D) for these diseases. This strategic move will contribute to global health and boost the U.S. economy, creating new jobs and fostering innovation. Recent research published by the Global Health Technologies Coalition (GHTC) has proven that investment from the U.S. can impact not only global health but also boost the U.S. economy.

The US Investments in Health R&D in Africa

The U.S. investments are vital to supporting the development of new drugs for diseases like malaria, tuberculosis, HIV and Ebola, which are among the most pressing health challenges in Africa and globally. For instance, U.S. investment in the development of antiretroviral drugs has significantly reduced the mortality rate of HIV/AIDS in Africa, saving millions of lives. This is a testament to the potential impact of the U.S. investments in health R&D in Africa.

In the last two decades, the U.S. has invested $46 billion in R&D for neglected diseases like HIV, malaria, tuberculosis and other health issues. In 2022, this investment was 0.21% of its gross domestic product (GDP). The investment helped develop 12 products for tuberculosis and 11 for malaria. The development of Pretomanid has revolutionized tuberculosis treatment. It also works for drug-resistant cases, reducing the treatment duration from 18 months to 6 months. Using it for all drug-resistant cases can save up to $740 million annually.

Two drugs, Cabotegravir and Dapvirine, developed with U.S. investments, have the potential to revolutionize HIV prevention and treatment. Many other products against different diseases are in the pipeline, also developed with the country’s investment.

Boosting the US Economy

These investments have boosted the U.S. economy and benefited U.S. companies and people in more ways than one might think. Here are some key points describing how these investments have contributed to the growth of the U.S. economy:

  • Investments in R&D for diseases have created 600,000 jobs in the U.S. 
  • The investments resulted in an additional $104 billion in the U.S. economy.
  • The investments on the governmental level have enhanced private sector investments in R&D for global health as well and $1 will result in an additional $8 investment in the private sector. These figures imply that the U.S. economy will ultimately gain an investment advantage of $102 billion.

These investments will result in future products worth $255 billion, further boosting the U.S. economy.

Final Thoughts

The U.S. has financial power and moral authority globally. More investment in R&D for diseases can improve life expectancy in Africa, strengthen the economies of partner countries, boost the U.S. economy and protect Americans’ health. The world has become a global village and diseases can spread quickly, creating a potential danger for everyone. Cases of malaria and leprosy have emerged in the U.S. in the recent past.

R&D of treatments and prevention products can help control the emergence of diseases in the U.S. and globally secure the financial future of thousands of Americans through jobs and boost a strong U.S. economy. In our current circumstances, allocating resources toward R&D for diseases in Africa is crucial. This investment can revitalize the U.S. economy during these challenging times.

– Maria Waleed

Maria is based in Yokohama, Kanagawa, Japan and focuses on Good News and Global Health for The Borgen Project.

Photo: Pexels

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Pandemic Preparedness: The World Bank’s Investment in the Africa CDC

Investment in the Africa CDCIn July 2022, the World Bank announced a new $100 million support program for the Africa Centres for Disease Control and Prevention (Africa CDC). It aims to increase African governments’ preparedness to handle future disease outbreaks. This funding is vital since there are approximately 140 disease outbreaks annually across the continent. “The project will help to cultivate regional capabilities critical to ensuring a resilient and prepared continent. It will do this by helping to build and maintain a robust public health workforce across countries’ health systems,” said the World Bank.

The Program’s Aim

An important aspect of the program and its investment in the Africa CDC is to “increase the number of epidemiologists and outbreak responders” to better deal with diseases at their initial outbreak. Along with a more immediate response, an aim of the World Bank is to reinforce Africa’s already existing public health infrastructure. The International Development Association, a branch of the World Bank focused on providing financial support for development programs in the world’s most impoverished countries, finances the project.

The Africa CDC was formerly directly associated with the African Union (AU), but recently, the AU granted the Africa CDC autonomy to increase its efficiency when dealing with health emergencies. The World Bank cites the health organization’s newfound autonomy as a great opportunity for investment in the Africa CDC to help its growth and further increase its future efficiency when handling health emergencies across the continent.

Other Recent Investments

This recent investment in the Africa CDC comes on the heels of a $100 million investment project in October 2020, also initiated by the World Bank, titled the Africa Pathogen Genomics Initiative (Africa PGI). However, this investment includes contributions from the U.S. CDC in addition to private entities such as Illumina, Oxford Nanopore, the Bill and Melinda Gates Foundation and Microsoft. The focus of this project is on pathogen genomics, namely to expand access to “next-generation genomic sequencing tools and expertise designed to strengthen public health surveillance and laboratory networks across Africa.” The Africa CDC asserts that this program will help “to develop new vaccines, diagnostics and treatments for current and emerging infectious diseases.”

Africa PGI will form part of the Institute of Pathogen Genomics that the Africa CDC established in 2019. The Africa PGI partnership will last for four years. These investments show an increased emphasis on public health in Africa from the states and organizations located outside of the continent.

Future Outlook

The goal of these investments in the Africa CDC is to increase preventative capability. The Africa CDC is looking to advance its ability to “nip diseases in the bud” before they become full-fledged outbreaks.

If the Africa CDC can be better prepared to detect and handle potential outbreaks before they occur, then it can save lives, time and funds. Africa’s past Ebola outbreaks present an illustration of inadequate disease control measures.

The Africa CDC cites these initiatives, namely the most recent $100 million from the World Bank, as holding the potential to increase efficient collaboration between institutions across the continent when it comes to outbreak preparedness.

Those that are likely to benefit most from these investments are those living in extreme poverty. Recent assessments of African states’ preparedness capacities have found that those most at risk of becoming affected by potential health emergencies are those living in the poorest conditions and those who are most marginalized. In sub-Saharan Africa, about 40% of the population lived in extreme poverty in 2018, equating to about two-thirds of the world’s extremely impoverished population.

The World Bank cites the emphasis on public health in the AU’s Agenda 2063: The Africa We Want, as a pivotal reason behind its recent investment initiatives. As Dr. Ahmed Ogwell Ouma, the acting director of the Africa CDC, eloquently stated, “Africa is changing the dynamic in its journey of realizing a New Public Health Order.”

– Devin Welsh
Photo: Flickr

Why Countries Should Be Investing in Brazil

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

COVID-19 Response

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

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

Diversified Opportunities in Emerging Markets

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

Market Expansion and Economic Growth

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

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

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

Geographical Location

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

Foreign Investment Returns

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

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

– Malala Raharisoa Lin
Photo: Flickr

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Silk Invest: Africa Food Fund Helps Local Businesses

Silk InvestSilk Invest is a private equity firm founded in 2008 that invests in emerging markets that demonstrate the potential for long-term economic growth. The largest private equity fund managed by the firm is called The Silk Africa Food Fund. Investments made from this fund target companies involved in food processing and distribution throughout Africa.

The Silk Africa Food Fund

The fund was started in June 2012 and focuses primarily on businesses that distribute food to African consumers. Countries that attract investment the most are those which are institutionally and politically stable enough to support long-term economic growth. Silk Invest is distinct from many other foreign investment funds that support the effort to reduce hunger in Africa in that it does not target agriculture but rather the distribution of food to consumers.

The three largest investments the fund is involved with are Nigeria’s Sundry Foods Limited, Ethiopia’s Nas Foods Plc and Egypt’s El Rashidy El Asly. Of these three, Nigeria’s Sundry has seen the most significant success and expansion following its partnership with Silk Invest.

The Success of Sundry Foods Limited

The company runs the popular restaurant chain, Kilimanjaro, as well as bakery and food catering services throughout the country. When Silk Invest first gave funds to Sundry in 2012, the company had seven restaurants open and a revenue base of around $3.4 million. In 2020, just eight years later, Sundry has 40 restaurants and a revenue base of around $34 million. The entrepreneurial effort of the company’s founder, Ebele Enunwa, has been instrumental in this progress.

Sundry is a company firmly rooted in supporting its fellow local businesses. Instead of setting up in the more commercial capital of Lagos, Enunwa established headquarters in Port Harcourt where he is a local entrepreneur. Its management team consists of local hires and its supply chain uses locally sourced raw materials, including chicken and rice from rural areas.

Sundry’s Impact and Potential

Sundry Foods Limited represents an example of the enormous potential which exists for businesses in developing nations when the proper investment is made. By providing capital to Sundry, Silk Invest gave the company the tools it needed to expand its operation. By doing so, Sundry has not only offered an improved service to consumers throughout Nigeria but has also stimulated its broader community’s own economy by maintaining a steady and even increasing demand for local products.

The impact made by Sundry’s growth is palpable. Over the last 10 years, the company has created over 2,000 jobs. Silk Invest’s Africa Food Fund is hugely impactful in the effort to reduce poverty in developing nations not only because of the direct benefit the invested capital provides to individual businesses but also because of the economic growth created in broader communities as an indirect result.

The Importance of Investing in Africa

This impressive progress was all stimulated by a $2.4 million investment. The high return for Silk Invest demonstrates that funding businesses in developing countries is not only beneficial to the growth and development of those businesses but is also a practical and sound investment for the firms offering the capital.

Investing in the effort to reduce world hunger presents impactful and beneficial opportunities for all parties involved. By establishing the Africa Food Fund, Silk Invest has committed itself to this effort while simultaneously supporting developing economies.

– Haroun Siddiqui
Photo: Flickr

New Horizons for Prosper Africa in 2021

prosper africaAfrican markets claim six out of 10 of the fastest-growing economies in the world. Africa’s middle-class is likely to have an annual household consumption of $2 trillion before 2030, and by 2050, the U.N. predicts that Africa will be home to one-quarter of the world’s population. Prosper Africa is an initiative that strengthens U.S. investment in Africa.

US-Africa Ties

Nations such as Germany and China are competing for investments in Africa in preparation for its burgeoning role in the global economy. In the past 20 years, the United States has also attempted a number of initiatives to expand U.S.-Africa economic ties. Unfortunately, results have been modest because the focus has been on Africa as a foreign aid recipient rather than a strong future trading partner. However, Prosper Africa’s latest initiative, set to launch in 2021, offers hope for a more engaged economic partnership between the U.S. and Africa.

Prosper Africa

Prosper Africa was launched in December 2018 to “vastly accelerate” U.S.-Africa trade and investment through the coordination of 17 U.S. agencies and departments. This mutually beneficial endeavor not only opens market opportunities and grows Africa’s economic sustainability, but also protects the United States’ interests in the competition against other nations’ involvement in Africa.

Far from being a foreign aid program, Prosper Africa’s official website acts as a one-stop-shop for U.S. and African businesses and investors. It offers toolkits for African businesses and investors seeking to export or invest in the United States and vice versa for U.S. businesses and investors seeking to become involved in Africa. According to the website, Prosper Africa represents “a new way of doing business” through its portfolio of support services. To date, the initiative has serviced more than 280 deals valued at more than $22 billion. In keeping with its expanding ambitions, Prosper Africa’s budget request for the 2021 fiscal year rose from FY2020’s $50 million to $75 million.

Prosper Africa: 2021 Plans

On Nov. 17, 2020, USAID announced a new Prosper Africa trade and investment program for 2021. Valued at $500 million over five years, its goal is to expand Prosper Africa’s services. The four project objectives are increased trade, increased investment, improved business environment and providing support for USAID and Prosper Africa. A strong emphasis will be placed on private investment. By 2026, the program is expected to raise billions of dollars and create hundreds of thousands of jobs in both Africa and the United States.

It is still uncertain exactly what this program will look like. The program’s blueprints from Feb. 2020 describe its implementation approach fairly loosely. It aims to be flexible in shaping private sector demands concerning the facilitation and brokering of deals. Most of its transactions will take place directly through the firms and actors involved.

In addition to Prosper Africa’s website toolkits, local offices and trade hubs will provide further customizable services to align with the needs of different sectors. Some examples of services include investor matchmaking, transaction facilitation, targeted reforms and export support. Resource allocation will be determined by impact potential. Opportunities within the private sector will comprise the majority of activities and projects may be funded by grants or subcontracts. Throughout its services, Prosper Africa encourages African states to support economic transparency and rule of law.

Prosper Africa’s Chances of Success

Because Prosper Africa is effectively a harmonization of 17 U.S. agencies and departments, success largely comes down to effective cooperation. However, the initiative’s goals vary in difficulty. For example, Prosper Africa has already made impressive strides in streamlining its toolkits and providing specific U.S. services to aid transactions. However, more long-range goals, such as procedural reform and transparency, sector expansion, the rule of law and improving business environments may prove more challenging to achieve. However, from an economic standpoint, it is certainly encouraging to see Prosper Africa approach U.S.-Africa relations as an equal, viable trade partnership rather than merely an aid recipient.

– Andria Pressel
Photo: Flickr

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Microsoft’s GR for GRowth Initiative in Greece

GR for GRowth initiative in GreeceUnemployment in Greece has remained a concern among Greeks since the financial crisis that devastated the economy. During the financial crisis, the Greek economy experienced a 25% decline. While the economy has attempted to recover, the economy continues to experience the impact of the financial crisis, and now the COVID-19 pandemic, which is expected to reduce the economy by another 8.2%. In July 2020, the unemployment rate in Greece reached 16.8%. While many Greeks fight to withstand the struggling economy, Microsoft is creating solutions through its GR for GRowth initiative in Greece. The Greek government anticipates that this initiative will rebalance the economy during the pandemic, shifting its heavy reliance from tourism to further developments in energy, tech and defense sectors.

GR for GRowth Initiative and the Economy

In October 2020, Microsoft announced an initiative in Greece that will create opportunities in technology. Microsoft’s ongoing investment is expected to reach approximately $1.17 billion. This will be the largest investment Microsoft has made over 28 years when it first began operations in Greece. The GR for GRowth initiative in Greece will build data centers in the country and develop resources in the economy that will promote growth opportunities that support the people of Greece, government and businesses. The leverage Greece will acquire through this initiative will attract other large corporations that will promote future investments in the Greek economy.

Currently, Microsoft operates data centers in 26 countries, including seven in the European Union. With this initiative, Microsoft will build new data centers that will create a Microsoft Cloud within the country that will provide Greece with a competitive edge as one of the world’s largest cloud infrastructures with access to effective and efficient cloud services. It is anticipated that by 2025, Microsoft will run all data centers on renewable energy sources.

Potential Impact of GR for GRowth

The GR for GRowth initiative in Greece will enhance cloud computing for local companies, startups and institutions. The services delivered through Microsoft Cloud will allow for more efficient networking, computing, intelligent business applications, cybersecurity, data residency and compliance standards. Microsoft has already implemented processes to increase user satisfaction and has collaborated with businesses in Greece for the development of cloud services. Alpha Bank, Eurobank, National Bank of Greece, OTE Group, Piraeus Bank and Public Power Corporation are anticipating the expansion of cloud services in Greece.

While the data center is Microsoft’s largest investment in Greece in 28 years, Microsoft has been paramount in building partnerships with over 3,000 businesses and customers throughout the years. The GR for GRowth initiative will stimulate innovation and growth within the Greek economy. Microsoft President, Brad Smith, believes this investment will positively influence the optimism about the future of Greece, government decisionmaking and economic recovery.

GR for GRowth and the Workforce

While unemployment has plagued the Greek economy, through this initiative, Microsoft will offer training opportunities that will equip more than 100,0000 people with skills in digital technologies by 2025. Over the next five years, Microsoft plans to invest in enhancing digital competencies across the public sector, among business and IT professionals, educators and students. The program will consist of online and in-person courses and workshops. Microsoft’s program objectives will focus on upskilling customers and partners, collaborating with public sector government entities and the expansion of the ReGeneration program that provides services to youth, unemployed and underserved communities.

According to the prime minister of Greece, Kyriakos Mitsotakis, the GR for GRowth initiative in Greece gives hope to the people of Greece for rebuilding its workforce. While the economy in Greece continues to struggle, this initiative hopes to solve economic battles and create a sustainable and prosperous economy.

– Brandi Hale
Photo: Flickr

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The New Frontier: China’s Investment in Africa

china's investment
For those seeking investment, look no further than the continent of Africa. While the continent has had a tumultuous couple of decades, plagued by health crises such as Ebola, and political unrest is it also gushing with economic, diplomatic, and political potential – and China is taking notice.

Government Involvement

Just last year (August 2018), President Xi of China, speaking at the Forum on China-Africa Cooperation, has pledged to invest a major sum of $60 billion in commercial loans to the African continent. This investment in Africa, as well as a plethora of other nations scattered across the Middle East, Eastern Europe and Asia, are all apart of China’s overall global strategy – what they are calling the Belt Road Initiative (BRI). Under this daring economic, political and diplomatic strategy, China is investing large sums of money to mainly developing nations as a way to not only benefit China’s economic interests but to cement its role in the world as a dominating global superpower.

A Welcoming Environment

Also, when it comes to large Chinese investments, Africa is more than welcoming. In addition to the overall loans that China is dedicating to forming some friendships, these investments, especially in infrastructure, may be a godsend. At the time of this writing, Africa has a $900 billion infrastructure deficit. The much-needed cash flow from China will not only allow many African nations to lay the groundwork for basic infrastructure projects, but it will also afford children the opportunities required to gain an education and for local businesses to trade.

In addition to the major pillars of the BRI, China is also establishing what it is calling a “Maritime Silk Road” – a chain of seaports from the South China Sea to Africa. With the construction of these ports will come: oil refineries, industrial parks, and fiber optic networks, all designed to make a trade with China easier and mutually beneficial – and thus far it seems to be accomplishing China’s goal of breathing new life into its infamous ancient Silk Road.

And while these projects are beneficial to the recipient countries, China does add that part of the developments will be helped by Chinese labor and companies, thus allowing China to take a slice of the economic cake as it were. But while many Chinese companies are profiting off BRI contracts, the projects being funded are benefiting local communities and provide steady work and cash flow to otherwise struggling areas of Africa. Economic benefits aside, this partnership is allowing many African nations to forge diplomatic relations with a world power as well.

Economic and Political Ramifications

China’s investment in Africa does, however, come with a few pitfalls. While Chinese companies become more prominent in Africa, so will “Made in China” products. This will come with some obvious knock-on effects, for example, for the last couple of decades these products have had a devastating effect on what was once a thriving South African textile industry. But, the pendulum does swing the other way as well. Ethiopia has seen positive outcomes from Chinese investments.

Investment in Africa began as an opening of windows of opportunity around the globe for China. The United States has been the worlds primary loan superpower for the last several decades – investing billions of dollars in foreign aid and development projects through USAID and starting working establishment programs in various nations. But with loans from the West coming with strings attached – mainly strict ethical standards – China saw a chance to offer billions in loans with fewer conditions.

Due to China’s willingness to loan large sums of money to nations torn apart by conflict and instability, the global community has raised concerns. These nations will eventually need to pay back these loans, and the worlds less than reliable recipients could threaten global economic stability if they default.

However, China isn’t necessarily concerned if these countries can’t pay them back, in the literal sense. In exchange for the economic clout that comes with Chinese investments, nations such as South Africa’s Djibouti are lending naval ports as a means of reciprocation – forming a “String of Pearls” which gives China a foothold in the naval Indian ocean. But while some of these loans may be risky investments on the continent of Africa, China understands the cost-benefit analysis and is treating Africa as a new frontier.

A Positive Outcome

China’s investment in Africa, while risky, may end up paying off. With Africa’s willingness to accept loans from China, and listening with open ears to China’s overtures for stronger diplomatic relations, Africa is in a good position to begin funding its own economic and development programs. Programs that will address issues of poverty, inequality, and education.

– Connor Dobson
Photo: Flickr