The MasterCard Foundation and Mennonite Economic Development Associates (MEDA), a Canadian Christian organization, have announced a USD 5 million five-year program that will provide financial services to youth between the ages of 15 and 24 in Morocco and Egypt. Microfinance services for the youth market have traditionally been scarce due to the perception that youth borrowers are higher risk because they lack collateral or work experience. The program, titled Youth Invest, will enable microfinance institutions to develop and test innovative products designed specifically for the youth maket.
MEDA will partner with microfinance institutions to study the needs of employed and unemployed youth, and to help develop specialized financial products such as savings for education or loans to start small businesses. The program will also provide training to equip the youth with financial and business-related skills. Through the study, collection of data, and documentation of findings, MEDA seeks to build a business case that would compel other microfinance institutions to see the value in the youth market.
Founded in 2006 in Toronto, Canada, the MasterCard Foundation is an independent, private foundation. The foundation seeks to “make the economy work for everybody by advancing effective and innovative programs.” The MasterCard Foundation has two areas of focus: Microfinance and Children and Youth Education. For the fiscal year ending December 31, 2007, the foundation had USD 2.4 billion in total assets. For past MicroCaptial stories on the MasterCard Foundation, click here.
Founded in 1953, Waterloo, Canada-based Mennonite Economic Development Associates provides microfinance services for the poor, access to markets for small producers, and technical services to promote investment in businesses and institutions that serve the poor. In 2007, MEDA served over 2.2 million clients in collaboration with 127 organizations worldwide.
By Iyanna Holmes, Research Assistant
Additional Resources:
MEDA Press Release: December 15, 2008, The MasterCard Foundation and MEDA Pioneer Financial Services for Poor Youth in Egypt and Morocco
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