MICROCAPITAL BRIEF: The MasterCard Foundation, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) Provide $6.5m to Launch Accion Africa Board Fellowship

Accion, a US-based nonprofit organization that offers services such as microenterprise loans and business training in 32 countries; The MasterCard Foundation, a Canadian nonprofit that promotes financial inclusion and education in Africa and other emerging markets; and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, recently partnered to launch the Accion Africa Board Fellowship in an effort to promote improved corporate governance and risk management practices in financial institutions assisting people with low incomes. The MasterCard Foundation and FMO contributed USD 6.18 million and EUR 250,000 (USD 311,000), respectively.

The program will support board members and CEOs of microfinance institutions in addressing issues including accountability between the board and management as well as the balancing of social performance alongside internal and external risks. The fellows will meet at a series of multi-day seminars during 2015. They also will have the opportunity to take part in the Harvard Business School-Accion Program on Strategic Leadership in Inclusive Finance that takes place each April.

As of 2013, Accion reports total assets USD 333 million and, in association with its partner MFIs, has an active loan portfolio of USD 7.9 billion serving 6.7 million borrowers.

As of 2014, The MasterCard Foundation reported approximately USD 9 billion in assets.

As of 2013, FMO reported total assets of EUR 6.2 billion (USD 8 billion) as well as placing new investments valued at EUR 1.5 billion (USD 2 billion) during the year.

By Simon Pfanner, Research Associate

About Accion

Accion is a private, US-based nonprofit organization with the mission of alleviating poverty by offering financial products such as microenterprise loans and business training. Accion was founded in 1961 and issued its first microloan in 1973 in Brazil. Accion’s partner microfinance institutions provide loans to men and women entrepreneurs through 62 microfinance institutions (MFIs) in 32 countries in Africa, the Americas and Asia. As of 2013, Accion reports total assets USD 333 million and, in association with its partner MFIs, has an active loan portfolio of USD 7.9 billion serving 6.7 million borrowers.

About The MasterCard Foundation

Based in Toronto, Canada, The MasterCard Foundation is a private foundation with the goal of enabling people living in poverty to improve their lives through 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 Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a Dutch development bank that was founded in 1970. It supports financial institutions and governments through loans, guarantees and other investment promotion activities including local-currency investments. FMO is owned by the Dutch government, which holds a 51-percent stake, alongside commercial banks, trade unions, employers’ associations and individual investors. As of 2013, FMO reported total assets of EUR 6.2 billion (USD 8 billion) as well as placing new investments valued at EUR 1.5 billion (USD 2 billion) during the year.

Sources and Additional Information

[1] Information provided to MicroCapital by Accion

MicroCapital, November 4, 2014, Green for Growth Fund Southeast Europe, FMO, Fibabanka Invest in Energy-Efficient Businesses

MicroCapital, October 1, 2014, Accion Acquires 10% Stake in Peruvian Microfinance Institution (MFI) Credinka from Diviso Grupo Financiero

MicroCapital, October 30, 2014, CGAP, MasterCard Foundation Award $500k for Behavioral Research to Freedom from Hunger, IFMR, Innovations for Poverty, The MicroInsurance Centre

MicroCapital Profile: Accion

MicroCapital Universe Profile: The MasterCard Foundation

MicroCapital Universe Profile: Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)

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