By 2030, one of the main objectives of the 2030 Agenda for Sustainable Development is to eradicate extreme poverty for everyone, everywhere.4 At Oxano Capital, we are deeply committed to this mission, particularly focusing on Sustainable Development Goals (SDGs) 1, 2, 3, 8, and 9. In this article, we will shed light on SDG 1, No Poverty, which is centered around the ambitious aim of eradicating poverty in all its forms and dimensions worldwide.
Over the past three decades, the global population living on less than $2.15 a day, adjusted for 2017 purchasing power parities, has dramatically decreased from around two billion in 1990 to approximately 711 million by 2022. However, the COVID-19 pandemic temporarily reversed some of this progress, with the number rising from 689 million in 2019 to 762 million in 2020, before slightly declining to 749 million in 2021. This highlights both the achievements made in poverty reduction and the ongoing challenges in sustaining these gains. In 2024, an estimated 429 million people in Africa were living in extreme poverty, defined by a daily income of just 2.15 US dollars. This represents a slight decrease from previous years, despite the continent's growing population. Encouragingly, projections indicate a continued decline in poverty rates across Africa, with 402 million fewer people expected to live below the extreme poverty line by 2030.
The above table shows the percentage of the population living below the international poverty line of US$1.90 per day in various African regions between 2013 and 2019. North Africa maintained the lowest and most stable poverty rates, with a slight decrease from 0.56% to 0.36%. West Africa experienced a significant increase in poverty, rising from 39.42% to 53.67%, while Central Africa, despite having the highest poverty rates, saw a slight improvement from 56.42% to 53.67%. East and Southern Africa both saw reductions in poverty, with East Africa dropping from 36.09% to 30.79% and Southern Africa from 31.67% to 29.25%.
One of the most effective ways to combat poverty is through entrepreneurship. Africa's entrepreneurial community, often made up of small and creative businesses, faces significant challenges due to limited access to essential skills and resources. To break the cycle of poverty, it's crucial to transform these small enterprises into scalable ventures, thereby opening doors for those excluded from traditional economic opportunities. By empowering these businesses to grow, we can create substantial job opportunities for Africa's youth, driving economic growth and reducing poverty across the continent.
At Oxano Capital, we invite companies and investees to join us in our mission to achieve SDG 1. By addressing both entrepreneurial and economic challenges, and ensuring access to essential services like education, healthcare, housing, and clean water, we can collectively enhance living conditions and build a more sustainable future. Connect with us to explore how your investments can contribute to this vital mission and drive impactful change.