MICROCAPITAL BRIEF: The MasterCard Foundation Commits $25m to Expand UN Capital Development Fund’s Mobile Money for the Poor (MM4P) Program

The MasterCard Foundation, a Canadian nonprofit that aims to promote youth learning and financial inclusion in Africa and other emerging markets, has partnered with the United Nations Capital Development Fund (UNCDF), a UN initiative to increase access to microfinance and other forms of investment capital for small businesses and individuals in developing countries, to expand the UNCDF Mobile Money for the Poor (MM4P) program. MM4P was started in 2012 to support branchless and mobile financial services providers in Africa. At the program’s inception UNCDF had secured USD 5.6 million. The new commitment from The MasterCard Foundation is to donate USD 25 million over five years to the program to increase mobile financial services in Benin, Senegal and Zambia. The expanded MM4P program will commence operations in mid-2015 with the goal of providing 10 to 12 percent of the population in the three targeted countries with regular access to mobile financial services within five years.

According to Tillman Bruett, the UNCDF-MM4P Program Manager, “This new partnership will not only expand MM4P’s work geographically but also bring in a range of new research and measurement tools that will help ‘prove the case’ as to how funders and governments can successfully promote digital finance to reach the poor. We hope that other markets can learn from this investment.”

As of 2013, UNCDF reported total revenue of USD 65 million, total expenditures of USD 60 million and operations in 33 of the 48 least developed countries. As of 2014, The MasterCard Foundation reported approximately USD 9 billion in assets.

By Ananya Tiwari, 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, primarily in Africa. 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 United Nations Capital Development Fund (UNCDF)
UN Capital Development Fund (UNCDF) is the UN’s capital investment agency for developing countries. It endeavors to create opportunities for poor people and their small businesses by increasing access to microfinance and other forms of investment capital. UNCDF focuses on Africa and the poorest countries of Asia, with particular commitment to countries emerging from crisis. As of 2013, UNCDF reported total revenue of USD 65 million, total expenditures of USD 60 million and operations in 33 of the 48 UN-designated least developed countries.

Sources and Additional Resources

[1] UN Capital Development Fund (UNCDF) Press Release, http://www.uncdf.org/node/3011

MicroCapital Story, October 30, 2014, “MICROCAPITAL BRIEF: CGAP, MasterCard Foundation Award $500k for Behavioral Research to Freedom from Hunger, IFMR, Innovations for Poverty, The MicroInsurance Centre,” https://www.microcapital.org/ cgap-mastercard-foundation- award-500k-for-behavioral- research-to-freedom-from- hunger-ifmr-innovations-for- poverty-the-microinsurance- centre/

MicroCapital story, June 17, 2014, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), MasterCard Foundation, Tigo to Expand Mobile Financial Services in Ghana,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-mastercard-foundation-tigo-to-expand-mobile-financial-services-in-ghana/

MicroCapital story, March 25, 2014, “MICROCAPITAL BRIEF: MasterCard Foundation Donates $23m to Opportunity International for Agricultural Financing in Sub-Saharan Africa,” https://www.microcapital.org/microcapital-brief-mastercard-foundation-donates-23m-to-opportunity-international-for-agricultural-financing-in-sub-saharan-africa/

MicroCapital story, July 27, 2013, “MICROCAPITAL BRIEF: Government of Cameroon Partners with United National Development Program (UNDP), International Fund for Agricultural Development (IFAD), United Nations Capital Development Fund (UNCDF) to Consolidate Microfinance Sector”, https://www.microcapital.org/microcapital-brief-government-of-cameroon-partners-with-united-nations-development-program-undp-international-fund-for-agricultural-development-ifad-united-nations-capital-development-fund-unc/

MicroCapital story, November 7, 2011, “MICROCAPITAL BRIEF: United National Capital Development Fund Seeks Financial, Technical Services Providers to Expand Savings Microfinance Program MicroLead,” https://www.microcapital.org/microcapital-brief-united-nations-capital-development-fund-seeks-financial-technical-service-providers-to-expand-savings-microfinance-program-microlead/

MicroCapital story, September 22, 2011, “MICROCAPITAL BRIEF: MasterCard Foundation, UN Capital Development Fund (UNCDF) Announce $23m Expansion of MicroLead Program to Promote Savings in Developing Countries,” https://www.microcapital.org/microcapital-brief-mastercard-foundation-un-capital-development-fund-uncdf-announce-23m-expansion-of-microlead-program-to-promote-savings-in-developing-countries/

MicroCapital Universe Profile: The MasterCard Foundation 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

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