The MasterCard Foundation, a Canada-based philanthropic organization that supports projects in the microfinance and education sectors, has agreed to grant USD 23.5 million to the MicroLead program, a financial inclusion initiative that was designed by the United Nations Capital Development Fund (UNCDF), an investment facility intended to encourage private sector development. MicroLead will support at least eight “experienced” financial institutions, in piloting new programs or providing technical assistance that enhances financial inclusion for poor people, with an emphasis on the development of savings products and services. The project is expected to benefit 450,000 low-income people in Sub-Saharan Africa over six years.
MicroLead was launched by UNCDF in 2009 in partnership with the Bill and Melinda Gates Foundation, a US-based philanthropic organization, in an effort to expand the global availability of microfinance services. Through a competitive bidding process, MicroLead provides funding to financial institutions who in turn are developing savings-based products and services for poor people in developing countries. As of September 2011, MicroLead has funded 13 projects worth USD 20.1 million.
By Rohan Trivedi, Research Associate
About the MasterCard Foundation:
Based in Canada, the MasterCard Foundation is a private foundation with the goal of enabling people living in poverty to improve their lives with increased access to microfinance and education. The foundation was established in 2006 by a gift of shares from global payment processor MasterCard Worldwide during the company’s initial public offering. As of 2010, the MasterCard Foundation reported approximately CAD 3 billion (the equivalent of USD 2.9 billion) in assets.
About the United Nations Capital Development Fund (UNCDF):
The United Nations Capital Development Fund (UNCDF) provides investment capital and technical advice to developing countries to promote microfinance and private sector development. UNCDF currently invests in thirty-eight of the least developed countries with a total programme portfolio amounting to approximately USD 200 million. Through its programs, UNCDF strives to contribute to the attainment of the Millennium Development Goals (MDGs), eight targets that were established by the United Nations to address the needs of developing countries.
About the Bill and Melinda Gates Foundation:
Based in the US, the Bill and Melinda Gates Foundation provides grants to organizations in approximately 100 countries with the aim of enhancing health care, reducing poverty and expanding access to education and information technology. The Bill and Melinda Gates Foundation’s Financial Services for the Poor initiative focuses on providing people with secure places to save money. To support this initiative, the foundation works with financial organizations to increase access to technology (point-of-sales devices, automated teller machines, etc.) and to forge partnerships among mobile phone companies, banks and microfinance institutions. It also supports the startup and growth of new banks in “difficult markets”. As of June 30, 2011, the Bill and Melinda Gates Foundation reported an asset trust endowment of USD 36.3 billion. In 2010, the Foundation awarded USD 2.6 billion in grants.
Sources and Additional Resources:
[1] MasterCard Foundation Press Release: “The MasterCard Foundation and the UN Capital Development Fund (UNCDF) Launch Expansion of the Successful MicroLead Programme Promoting Financial Inclusion in Africa”, http://www.themastercardfoundation.org/news_releases/2011-09-19_1.htm
MicroCapital.org story, May 6, 2011: “MICROCAPITAL BRIEF: Opportunity International to Receive Grant of $2.5m from United Nations Capital Development Fund’s (UNCDF’s) MicroLead Program to Begin Microfinance Services In Democratic Republic of Congo”, https://www.microcapital.org/microcapital-brief-opportunity-international-to-receive-grant-of-2-5m-from-united-nations-capital-development-funds-uncdfs-microlead-program-to-begin-microfinance-services-in-democratic-republic-of-co/
MicroCapital.org story, December 15, 2010: “MICROCAPITAL BRIEF: MasterCard Foundation, UN Capital Development Fund (UNCDF) Launch YouthStart to Expand Financial Services for Youth in Sub-Saharan Africa”, https://www.microcapital.org/microcapital-brief-mastercard-foundation-un-capital-development-fund-uncdf-launch-youthstart-to-expand-financial-services-for-youth-in-sub-saharan-africa/
MicroCapital Universe Profile: MasterCard Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard+Foundation
MicroCapital Universe Profile: United Nations Capital Development Fund (UNCDF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Nations+Capital+Development+Fund+%28UNCDF%29
MicroCapital Universe Profile: Bill and Melinda Gates Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bill+and+Melinda+Gates+Foundation
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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