The African Development Bank (AfDB), a multilateral institution providing loans and grants to governments and private companies on the continent; and MasterCard, a US-based payments and technology company, recently announced that they are launching a collaboration aimed at increasing financial inclusion in Africa.
The partnership will focus on utilizing “innovative financial services and solutions” and encouraging the sharing of knowledge among institutions in the microfinance sector.
Former AfDB President Donald Kaberuka said that “economic growth in Africa has not translated into shared prosperity and better livelihoods for the majority. Growth has to be inclusive to be socially and politically sustainable. One key component of inclusive development is financial inclusion, an area in which Africa has been lagging behind other continents. Broadening access to financial services will mobilize greater household savings, marshal capital for investment, expand the class of entrepreneurs, and enable more people to invest in themselves and their families”.
As of September 2015, AfDB holds capital of USD 91.9 billion provided by 80 member countries, including 54 in Africa. MasterCard reported total assets of USD 15.3 billion and 2.2 billion payment cards in circulation as of June 2015.
By Kevin van den Brink, Research Associate
About African Development Bank
The African Development Bank Group was founded in 1964 and provides loans and grants to governments and private companies in Africa. It consists of three entities: The African Development Bank, The African Development Fund and The Nigerian Trust Fund. Owned and funded by its member governments, the bank has a mandate to reduce poverty and promote sustainable development. As of September 2015, AfDB has capital of USD 91.9 billion provided by 80 member countries, including 54 in Africa.
About MasterCard
Headquartered in the US city of Purchase, New York, MasterCard is a payments and technology company that connects consumers, financial institutions, merchants and governments in approximately 210 countries and territories. As of June 2015, MasterCard reported total assets of USD 15.3 billion and 2.2 billion payment cards in circulation.
[1] MasterCard, News, “African Development Bank and MasterCard Broaden Financial Inclusion in Africa”
MicroCapital Universe Profile: African Development Bank (AfDB)
MicroCapital Universe Profile: MasterCard
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