The Food and Agriculture Organization (FAO), a United Nations (UN) organization that engages in “sustainable management”[1] of natural resources and works toward the eradication of hunger, and MasterCard, a US-based payments and technology company, recently formed a partnership to create “inclusive payment systems”[2] to support small-scale farmers and low-income households in developing countries. The objective of this partnership is to assist developing economies by providing low-income households with money or credit to purchase “basic needs”[2], farming tools and other products.
The first project of the partnership is planned for an unspecified date in the Kakuma refugee camp in Turkana County, Kenya. As of 2015, 170,000 refugees reside in Kakuma after having fled from violence in neighboring countries. The refugees will be supplied with prepaid cards permitting them to buy charcoal that has been produced locally “in a sustainable, environmentally-friendly way”[2]. This aims to increase the incomes of local residents of Turkana, thereby reducing tensions between the residents and the refugees. MasterCard also plans to contribute improved charcoal-making kilns to 1,240 local households and energy-efficient stoves to 7,000 refugee households. These households are also to receive credit for 25 percent of their annual charcoal purchases [2].
As of June 2015, MasterCard reported total assets of USD 15.3 billion and 2.2 billion payment cards in circulation. As of 2014, FAO reported total assets of USD 5.15 million.
By Hye In Arielle Oh, Research Associate
About United Nations Food and Agriculture Organization (FAO)
Headquartered in Rome, Italy, the Food and Agriculture Organization (FAO) is an agency of the United Nations (UN) that engages in “sustainable management” of natural resources, the elimination of poverty and the eradication of hunger. As of 2015, its members include the European Union (EU), Faroe Islands, Tokelau and 194 member nations. As of 2014, FAO reported total assets of USD 5.15 million.
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.
Sources and Additional Resources:
[1] Food and Agriculture Organization of the United Nations: “About FAO,” http://www.fao.org/about/en/
[2] MasterCard: “FAO and MasterCard Announce New Partnership,” http://newsroom.mastercard.com/press-releases/fao-and-mastercard-announce-new-partnership/#prclt-KiV5I11Q
[3] Food and Agriculture Organization of the United Nations: “Audited Annual Accounts, 2014,” http://www.fao.org/3/a-mn359e.pdf
[4] MasterCard: “MasterCard Incorporated Reports Second-Quarter 2015 Financial Results,” http://investor.mastercard.com/investor-relations/investor-news/press-release-details/2015/MasterCard-Incorporated-Reports-Second-Quarter-2015-Financial-Results/default.aspx
MicroCapital Universe Profile: “MasterCard,” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard
MicroCapital Universe Profile: “United Nations Food and Agriculture Organization (FAO),” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Nations+Food+and+Agriculture+Organization
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