The Bill and Melinda Gates Foundation and the MasterCard Foundation are partnering to award a grant of USD 16 million to Opportunity International, an international non-profit organization with a microfinance program headquartered in Malawi. The Bill and Melinda Gates Foundation website announces that the purpose of the grant is “to support the expansion of new delivery channels, savings and agricultural finance in Malawi, Ghana, and other African countries” [1].
According to an Opportunity International Press Release, the organization plans to use the grant money to provide over 1.4 million people with access to savings accounts as well as provide comprehensive financial services to 90 thousand impoverished farmers in sub-Sahara Africa. The program will begin in Malawi and Ghana, and Opportunity International hopes to expand the program to two or three additional countries over the next five years [2].
About Opportunity International
Based in the United States, Opportunity International provides small business loans, savings, insurance, and training to over two million impoverished people. Founded in 1971, Opportunity International now operates in 25 countries across the world in Africa, Asia, Eastern Europe, and Latin America. As of December 31, 2008, Opportunity International has USD 800 million in total assets and a net loan portfolio of USD 537 million.
About the Bill and Melinda Gates Foundation
The Bill & Melinda Gates Foundation provides grants to organizations within the United States and in more than 100 countries around the world with the aim of enhancing health care, reducing poverty and expanding educational opportunities and access to information technology. As of September 2009, the asset trust endowment totaled USD 34.17 billion. USD 21.08 billion in grants has been committed since the foundation’s inception. The Bill & 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 forge partnerships between mobile phone companies, banks and microfinance institutions. It also supports the startup and growth of new banks in difficult markets.
By Eric McKay, Research Assistant
Bibliography
[1] “Opportunity International Inc”, Gates Foundation, http://www.gatesfoundation.org/Grants-2009/Pages/Opportunity-International-Inc-OPPGD1515.aspx
[2] Opportunity International, Press Release, “Gates and MasterCard Foundation Partner with Opportunity International to Provide Financial Access to 1.4 Million of the Rural Poor in Africa”, http://www.opportunity.org/Page.aspx?pid=979
Additional Links
MicroCapital Universe: Opportunity International: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+International
MicroCapital Universe: Bill and Melinda Gates Foundation: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bill+and+Melinda+Gates+Foundation
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