Blog

Mandera County, the second poorest county in Kenya, grapples with recurrent drought, seasonal flooding, violent extremism, and economic alienation from the rest of the country. Over 89 percent of Mandera’s 900,000 residents live below the poverty line.

Women globally are 17% less likely to own a smartphone than men and even with mobile technology in a household, women are less likely to have the skills or confidence to use a mobile device and are less likely to have control over when and how they use it. These barriers are particularly acute for members of Village Savings & Loan Associations (VSLAs) who tend to be from the lowest income communities. For VSLA members, access to and usage of digital technology is limited due to cost, but also discriminatory gender norms that limit women’s ability to acquire basic digital skills and access to and use of technology. To address women’s digital exclusion, CARE developed a multi-pronged approach to delivering digital tools and skills to VSLA members, including enabling access to devices and addressing discriminatory norms. Two pilots commenced in September 2022, with 50 groups in Uganda and 50 groups in Rwanda. Through these pilots, CARE has conducted extensive research and is addressing social norms; facilitating access to devices; and delivering digital training.

The December 7, 2023 Finance Champions meeting featured four finance-focused presentations on:

Society Development Committee, or SDC, based in Faridpur, Bangladesh, is a microfinance partner of the Feed the Future Bangladesh Livestock and Nutrition Activity, funded by USAID and implemented by ACDI/VOCA. Through this partnership, thousands of people working in Bangladesh’s livestock sector have benefited from microfinance products.

Accessible finance is vital for small businesses and entrepreneurs. Yet, oftentimes, they struggle to access financing from traditional sources because they lack the knowledge to produce comprehensive financial documentation required by banks. Meanwhile, financial institutions may perceive small businesses as higher risk clients due to their size, limited track record, and insufficient collateral. In many countries, like Rwanda, financial institutions have limited knowledge in the livestock value chain financing opportunities compared to crops value chain.

In rapid response to the abrupt trade disruptions resulting from Russia’s blockade of the Black Sea—a tactic in its war on Ukraine, the U.S. Agency for International Development (USAID) launched the Agriculture Resilience Initiative (AGRI)-Ukraine. AGRI-Ukraine is critical to supporting Ukraine’s export and agricultural sector needs, which are expected to remain vulnerable to the Russian Federation’s aggression in the months and years to come.

An increasing body of evidence shows the importance of addressing social norms as an essential component of women’s economic power.

Growing evidence suggests that companies which increase women’s equitable participation experience overall business growth, stronger financial performance, and increased productivity. According to the evidence, these companies can attract the best talent, focus on innovation, and gain access to new and changing markets. To create a detailed review of what evidence currently exists, this study looks at policies, practices, and programs for increasing women’s equitable participation. 

The Finance Champions group was established in March 2023 with the aim to share innovative approaches being tested by USAID Missions, Bureaus and Independent Offices and to exchange learning on the topic of mobilizing finance in development. This group, which is internal to USAID, meets every six weeks, and has grown from an initial group of 20 to 160 members.

An increasing body of evidence shows the critical importance of addressing gender-based violence (GBV) in the world of work as an essential component of women’s economic empowerment (WEE). GBV contributes to poverty, magnifies the gender gaps in labor force participation and pay, and affects advancement opportunities.

Developed through a partnership between the USAID and Mastercard, Project Kirana focused on helping women micro entrepreneurs gain the tools they need to grow their businesses in India. Project Kirana recognized the complex set of problems encountered by women micro entrepreneurs in India: limited business and digital financial capabilities, and limited access to formal financial services. By equipping women entrepreneurs with the knowledge and tools they needed — including financial and digital literacy expertise, business management skills, and strategies for addressing cultural barriers — over 2,500 women were able to grow their small retail businesses and increase their incomes.

Lack of access to finance is universally regarded as one of the most significant constraints to economic development. Without affordable and appropriate capital, Northern Kenyan individuals and micro, small, and medium enterprises (MSMEs) are prevented from participating in the formal economy, capitalizing on business opportunities, investing in their livelihoods, and responding to shocks, such as natural disasters.

This blog was originally posted on Climatelinks as a collaboration during COP28.

If you’ve ever tried to evaluate the extent of system change, you know it’s a fascinating—but tricky—process.

Have you ever wanted to see where USAID provides funding, or what USAID invests in?

This post was written by Habitat for Humanity's Terwilliger Center for Innovation in Shelter and was Originally Published on the Vikāra Institute's website.

This post was written by Habitat for Humanity's Terwilliger Center for Innovation in Shelter and was originally published on the Vikāra Institute's website.

Start-ups and fast-growing small and medium enterprises (SMEs) need financing to grow—and that financing must be affordable. Yet, the return on investment that finance providers, such as banks and investors, require (to cover their costs and risks) often exceeds what SMEs can afford.

Around the world, donors like USAID are focused on helping small businesses thrive. These businesses create the lion’s share of formal jobs in emerging markets, and they provide the goods and services local communities need. Still, many small businesses struggle to grow because they can’t access the financing they need. Enter transaction advisors: private sector firms that work with small businesses and investors, structuring and closing investment deals between them.

What does protecting watersheds have to do with the coffee market system? Surprisingly, a lot! Since 2014, Catholic Relief Services’ (CRS) Blue Harvest Program has worked with local partners in Honduras, El Salvador and Nicaragua to restore water resources and transform coffee livelihoods. The mountainous, coffee-producing areas of Central America provide drinking water for millions of people. As land degradation and climate change threaten coffee production and contribute to growing water scarcity, the link between the coffee market system and natural resource management has never been more important.

Is it possible to reintroduce a crop with a compelling global value in a nation with substantial land degradation and little institutional crop memory? Yes, it’s possible. But only with a strategic approach to market systems development (MSD). With local partners CLUSA El Salvador, Acugolfo and Caritas, Catholic Relief Services (CRS) has been working since 2014 to resuscitate El Salvador’s cacao sector through the Alianza Cacao project. Alianza Cacao aims to turn El Salvador into a key exporter and place of origin for high-quality, aromatic, fine-flavor cacao by stimulating production of an estimated 4,500 metric tons of Salvadoran cacao worth approximately $20,000,000 over the life of the project.

Countries in Latin America and the Caribbean are revolutionizing access to banking services and empowering millions of previously unbanked individuals. According to the latest data from the World Bank Findex, 73 percent of people in the region (excluding high-income countries) own a financial account—and the proliferation of digital financial services and financial technology (fintech) played an essential role in this growth.

Northern Kenya has significant opportunities for economic development, and access to finance is a key driver for the region’s sustainable growth. Unfortunately, the region is also burdened with negative perceptions, as Kenyan financial institutions deem it risky compared to other more economically developed parts of the country. Further, most plentiful and impactful Northern Kenyan investments are at the micro, small- and medium-sized enterprise (MSME) level.

This post was authored by Paul Newall, Senior Technical Director of Partnerships & Investment at ACDI/VOCA. 

This post was authored by Wyanie Bright, ACDI/VOCA's Chief of Party for USAID Kuza.