The International Development Finance Corporation (DFC), which is backed by the US government, recently agreed to collaborate with the US-based financial technology firm Mastercard to strengthen Mastercard’s Community Pass program. Community Pass supports digital connectivity, smartphone penetration and identification systems in rural parts of India, Kenya, Mauritania, Mozambique, Tanzania and Uganda. DFC has agreed to invest up to USD 50 million in Community Pass partners such as financial services providers, agricultural firms and technology companies. In turn, these partners “can expand access to essential services and reduce the cost of delivering them.… For example, financial institutions and agtechs [agricultural technology firms] in Africa are using Community Pass to digitize agricultural value chains, enable access to credit, and create a bigger pool of buyers, helping smallholder farmers get paid more and faster.”
Headquartered in the US state of New York, Mastercard connects consumers, financial institutions, merchants and governments in approximately 210 countries and territories. For the quarter ending September 2022, the firm reported net revenue of USD 5.8 billion.
DFC was initiated in 2020 to “help businesses expand into emerging markets, foster growth and improve lives in the developing world while reinforcing US foreign policy and national security interests.” The organisation issues equity placements, loans, guarantees, insurance, technical assistance and research in sectors such as energy, medicine, infrastructure and technology. During 2021, DFC brought in net income of USD 162 million, closing the year with assets of USD 15 billion.
Sources and Additional Resources
Direct contact with DFC
DFC press release
https://www.dfc.gov/media/press-releases/focus-africa-new-dfc-and-mastercard-collaboration-provide-50-million-potential
Mastercard description of Community Pass
https://www.mastercard.com/global/en/business/governments/community-pass.html
Mastercard financials
https://investor.mastercard.com
Mastercard homepage
https://mastercard.com
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