Ethiopia’s First Consult and the Canada-based Mastercard Foundation recently launched a programme intended to increase financial inclusion and support 72,000 micro-, small and medium-sized enterprises (MSMEs) in Ethiopia to create 400,000 jobs. Known as the MESMER Programme (Micro, Small, and Medium Enterprise Recovery and Resilience), the effort is supported by the Ethiopian Ministry of Labor and Skills.
The key idea behind the programme is to help stimulate business growth and recovery by increasing “access to finance, business development, and psychosocial support,” including by helping MSMEs build credit histories and supporting financial institutions in providing easier credit access. MESMER has a budget of USD 49 million to disburse as grants and soft loans.
Samuel Yalew Adela, Mastercard Foundation Country Director for Ethiopia, said of the programme, “Support in conflict-affected regions will ensure recovery. We believe a combination of relevant skills and business development services, affordable financial services, as well as the passion of the entrepreneur will ensure enterprise survival and growth…[leading to] a significant difference in creating a pipeline of investable business and contribut[ing] to the country’s ambition to transition to a private sector-led economy.”
MESMER is a follow-up to the Mastercard Foundation’s COVID-19 Recovery and Resilience Program, which sought to alleviate the short-term negative impacts of the pandemic through grants and soft loans. The two-year program reached about 15,000 MSMEs over two years, with a budget of USD 34 million.
Based in the city of Toronto, the Mastercard Foundation also has offices in Egypt, Ghana, Kenya, Nigeria, Rwanda and Senegal. The mission of the foundation is to improve the lives of African youth. As of 2021, it reported USD 300 billion in assets under management
First Consult is an economic development consultancy established in Ethiopia in 2006. It is active in business development and planning in the manufacturing, service and agricultural sectors.
By Anaya Jhaveri, Research Associate
Sources and Additional Resources
Mastercard Foundation press release
https://mastercardfdn.org/ethiopia/mastercard-foundation-and-first-consult-announce-program-to-support-72000-micro-small-and-medium-enterprises/
Mastercard Foundation financials
https://mastercardfdn.org/financials/
First Consult homepage
https://www.firstconsultet.com/
Ministry of Labor and Skills homepage
https://mols.gov.et/
Mastercard Foundation homepage
https://mastercardfdn.org
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