MICROCAPITAL BRIEF: International Finance Corporation (IFC), MasterCard Foundation, Tigo to Expand Mobile Financial Services in Ghana

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group; the MasterCard Foundation, a Canadian nonprofit founded by US-based global payment processing company MasterCard that aims to promote youth learning and financial inclusion in emerging markets; and Tigo Ghana, a unit of Luxembourg-based telecommunication firm Millicom International Cellular, recently announced that they have signed an agreement worth USD 2 million to provide advisory services to support Tigo Ghana “to develop and expand mobile financial services in support of wider financial inclusion”[1] in Ghana. Over three years, the advisory services will focus on customer education, agent network management, business development and customer profiling.

The project is part of the Partnership for Financial Inclusion, a joint initiative between the IFC and MasterCard Foundation that has already invested USD 37.4 million in Sub-Saharan Africa in an effort to expand financial services.

IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013. As of 2014, the MasterCard Foundation reported approximately USD 9 billion in assets. At end of 2013, Millicom reported assets of USD 9.15 billion and 50 million mobile subscribers.

By Juan Blanco, Research Associate

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

About 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 US-based payment processor MasterCard Worldwide during the company’s initial public offering. As of 2014, the MasterCard Foundation reported approximately USD 9 billion in assets.

About Millicom International Cellular (Tigo)

Founded in 1990, Millicom International Cellular, also known as Tigo, is based in Luxembourg and provides mobile phone network access in 13 countries in Latin America and Africa. At the end of 2013, Millicom reported assets of USD 9.15 billion. Tigo has 50 million subscribers.

Sources and Additional Resources

[1] IFC, “IFC, The MasterCard Foundation and Tigo Ghana to expand mobile financial services in Ghana,” 2014, http://ifcext.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/A42CDFD58E758CB242257CE500321F97

MicroCapital, April 23, 2014, Cooperative Rural Development Bank (CRDB) of Tanzania, International Finance Corporation (IFC) Sign $75m Agreement to Support Small, Medium-Sized Businesses Including Those Owned by Women, Involved in Agriculture

MicroCapital, March 25, 2014, MasterCard Foundation Donates $23m to Opportunity International for Agricultural Financing in Sub-Saharan Africa

MicroCapital, March 18, 2014, Tigo Introduces Cross-border Mobile Money Transfer Service With Currency Conversion Serving Rwanda, Tanzania

MicroCapital Universe Profile: International Finance Corporation (IFC)

MicroCapital Universe Profile: MasterCard Foundation

MicroCapital Universe Profile: Millicom International Cellular (Tigo)

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