The MasterCard Foundation of Canada recently committed USD 25 million to BRAC, a microfinance institution (MFI) formerly known as the Bangladesh Rural Advancement Committee, in an effort to support the expansion of BRAC’s “microfinance multiplied” program in Uganda, which enables poor clients to use microloans to build income and assets while simultaneously encouraging social and community development. The commitment aims to enable BRAC to expand its network in Uganda by opening 40 new branches. The BRAC program provides credit, training and technical support to economically active women, with a focus on those engaged in agricultural poultry and livestock. The program also assists adolescent girls in furthering their vocational and life-skills training.
In 2008 the MasterCard Foundation committed USD 19.6 million to BRAC to facilitate the opening of 51 branches in Uganda at the outset of the “microfinance multiplied” program as was covered in the following MicroCapital story: https://www.microcapital.org/microcapital-story-bangladesh-rural-advancement-committee-brac-and-mastercard-foundation-establish-196m-microfinance-program-in-uganda/
As of 2009, BRAC Uganda reported to the US nonprofit Microfinance Information Exchange (MIX) total assets of USD 25.8 million, a gross loan portfolio of USD 13 million, approximately 103,400 borrowers, return on assets (ROA) of -8.65 percent and return on equity (ROE) of -68.79 percent. As of 2009, BRAC reported to MIX total assets of USD 990 million, a gross loan portfolio of USD 636 million, approximately 6.2 million borrowers, ROA of 3.74 percent and ROE of 14.6 percent.
By Medha Ravi, Research Associate
About BRAC:
Established in 1972, BRAC (Bangladesh Rehabilitation Assistance Committee) is a development organization based in Bangladesh. In addition to microfinance, BRAC provides sector-specific enterprise training and support to its member borrowers in poultry and livestock, fisheries, social forestry, agriculture and sericulture. As of 2009, BRAC reported to the US nonprofit Microfinance Information Exchange (MIX) total assets of USD 990 million, a gross loan portfolio of USD 636 million, approximately 6.2 million borrowers, return on assets (ROA) of 3.74 percent and return on equity (ROE) of 14.6 percent.
About MasterCard Foundation:
Based in Canada, the MasterCard Foundation is a private foundation with approximately USD 2.7 million in assets, as of 2009. The foundation’s goal is to enable people living in poverty to improve their lives through increased access to microfinance and education. The foundation was established in 2006 by a gift of shares from global payment processor MasterCard Worldwide during the company’s initial public offering.
Source and Resources:
[1] BRAC Blog, “BRAC and The MasterCard Foundation Announce the Expansion of their Partnership in Uganda”, http://blog.bracusa.org/2011/03/brac-and-mastercard-foundation-announce.html
MicroCapital.org story, January 17, 2011, “MICROCAPITAL BRIEF: MasterCard Foundation, Women Advancing Microfinance (WAM) Announce Scholarship Opportunities for Sustainable Microenterprise and Development Program (SMDP) in Ghana”, https://www.microcapital.org/microcapital-brief-mastercard-foundation-women-advancing-microfinance-wam-announce-scholarship-opportunities-for-sustainable-microenterprise-and-development-program-smdp-in-ghana/
MicroCapital.org story, November 26, 2008, “MICROCAPITAL STORY: Bangladesh Rural Advancement Committee (BRAC) and MasterCard Foundation Establish $19.6m Microfinance Program in Uganda”, https://www.microcapital.org/microcapital-story-bangladesh-rural-advancement-committee-brac-and-mastercard-foundation-establish-196m-microfinance-program-in-uganda/
MicroCapital’s Microfinance Universe profile: The MasterCard Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard+Foundation
MicroCapital’s Microfinance Universe profile: BRAC, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BRAC
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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