ADB and Mastercard Sign MoU to Enhance MSME Financing in the Asia-Pacific Region with Support from ADB Member Countries.
Banking & Finance
On November 28, 2024, the Asian Development Bank (ADB) and the Mastercard Impact Fund, administered by the Mastercard Centre for Inclusive Growth, signed a Memorandum of Understanding (MoU) to launch a transformative partnership. The partnership aims to enhance financing for Micro, Small, and Medium-sized Enterprises (MSMEs) across the Asia-Pacific region.
- Mastercard will provide a USD 5 million grant from its Impact Fund to Financial Institutions (FIs) to increase lending to MSMEs, with a special emphasis on women-led enterprises and climate financing.
- This grant is expected to unlock USD 1 billion in ADB financing over four years.
- The partnership will initially target seven countries: Georgia, India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
Main Point :- (i) At least 50% of the funding will be allocated to women-led businesses and climate-related projects over the next four years.
(ii) Financial aid under this partnership will be utilized for risk-reduction capital, performance-based incentives, and capacity building for FIs.
(iii) Nearly 50% of MSMEs in the Asia-Pacific region remain unserved or underserved by Financial Institutions (FIs), creating a credit gap of USD 2.5 trillion, highlighting the commitment of ADB and Mastercard to drive financial inclusion and empower these enterprises.
About Mastercard Inc.
CEO : Michael Miebach
Headquarters : Philippines
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