IFC, MasterCard Foundation launch N5.9b partnership to financial inclusion

INTERNATIONAL Finance Corporation (IFC), a member of the World Bank Group, and the MasterCard Foundation, have signed a new partnership worth N5.9 billion or $37.4 million to aid people in the Sub-Saharan African region have aceess to funds through microfinance banks' scheme.Building on recent economic momentum and stability in many African economies, the corporation announced that the project would create new opportunities for economically disadvantaged people to expand businesses, gain access to cost-effective financial services, and manage risk.Through this new $37.4 million partnership, IFC and the MasterCard Foundation will help microfinance banks expand more rapidly and develop new products and cost-effective delivery channels, while expanding coverage in new, often hard-to-reach locations. The project will also help providers to deliver low-cost mobile financial services to low-income customers.'Disadvantaged people derive real benefits from having more control over their finances and our partnership with IFC will help bring responsible financial services to a significant number of people in Sub-Saharan Africa,' said Reeta Roy, president and CEO of The MasterCard Foundation.'As we scale institutions and support new mobile financial service opportunities, this partnership will also create knowledge that will be invaluable in promoting greater financial inclusion,' he added.The MasterCard Foundation has become a major player in the field of microfinance, particularly in Sub-Saharan Africa, having forged partnerships worth more than $230 million since its inception in 2006.To date, these partnerships have helped provide financial services to over a million people and provided another two million with access to financial education.The MasterCard Foundation partnership is IFC's largest with a private foundation.'This partnership leverages IFC's global expertise, local knowledge, and client networks to promote greater financial inclusion. It will help IFC clients do more for low-income customers in Africa,' said Nena Stoiljkovic, IFC vice president for Business Advisory Services.Since its first microfinance investment in 1997, IFC's involvement in microfinance has steadily increased, and IFC is now one of the top three global investors in microfinance. As of June 2011, IFC had directly committed over $1.2 billion in investments to microfinance projects globally, with more than 150 financial institutions in over 60 countries.IFC invested early in mobile financial services, supporting pioneers such as WIZZIT in South Africa, and providing advisory support to MTN in Nigeria and Airtel in Madagascar. IFC's portfolio includes six investments with dedicated e-payment service providers and investments with financial intermediaries and mobile network operators offering mobile wallets.
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