The Canada-based Mastercard Foundation recently committed USD 300 million to Ethiopia to expand Young Africa Works, an initiative intended to create job opportunities for 30 million young Africans, 70 percent of whom are women, in 10 countries by 2030. The effort, which was launched in partnership with Ethiopia’s Jobs Creation Commission (JCC), will fund programs that support entrepreneurs as well as small and medium-sized businesses by “catalyzing growth in the tourism, agriculture, manufacturing, and information and communication technology (ICT) sectors.” The implementing partners for the first phase are: the country’s Ministry of Innovation and Technology; US-based Dalberg; US-based Development Alternatives Incorporated Europe; SNV Netherlands Development Organization; and three Ethiopia-based organizations, First Consult, the International Centre for Insect Physiology and Ecology, and Kifiya Financial Technology.
Mastercard Foundation CEO Reeta Roy said, “Through my travel across Ethiopia, I’m inspired by the creativity and dynamism of young entrepreneurs and how their innovations are bringing about meaningful change in their communities. Young Africa Works will support them by providing access to finance, business development support and skills development so they can further scale their businesses to create more jobs for young Ethiopians.
Semhal Guseh, the Founder and CEO of Ethiopia’s Kabana Leather, was quoted as saying, “It’s hard owning your own business, and I failed at least twice, but if you follow your passion, then you are able to really impact people’s lives. What keeps me going is knowing that my drive does not come from making a profit, but from creating jobs that are giving people a livable income and helping them flourish and grow. As an entrepreneur, I want to improve the productivity, creativity and sustainable growth of my company but this means access to capital and land so that I can expand and scale my business.” Kabana, which was established in 2017, employs 80 people, 80 percent of whom are young women, as of 2019.
Ethiopia’s JCC was launched by Prime Minister Abiy Ahmed in 2019 to “unlock the full potential of the private sector” with the goal of creating 3 million “sustainable” jobs during its first year. The organization’s role is to drive the country’s job creation agenda, coordinate stakeholder efforts, develop a system for tracking the labor market, ensure the adoption of “pro-employment policies”, and mobilize related investment.
Established in 2006 by MasterCard, a US-based financial services corporation, the Mastercard Foundation aims to support young Africans in moving out of poverty via improved “access to education, financial services, and skills training.” Since its inception, the foundation has worked in 34 African countries, but as of 2019 it plans to focus its involvement deeper into 10 countries on the continent. As of 2018, the organization reported annual expenditures of USD 298 million and total assets of USD 17.4 billion.
By Anna Gravois, Research Associate
Sources and Additional Resources
Mastercard Foundation press release
https://mastercardfdn.org/10-million-young-people-to-access-dignified-and-fulfilling-work-opportunities-in-ethiopia/
MicroCapital story on Young Africa Works in Senegal
https://www.microcapital.org/microcapital-brief-mastercard-foundation-commits-200m-to-young-africa-works-a-10-year-10-country-effort-launching-in-senegal/
Mastercard Foundation homepage
https://mastercardfdn.org
International Centre for Insect Physiology and Ecology homepage
http://www.icipe.org
Kifiya homepage
http://www.kifiya.com
First Consult homepage
http://firstconsultet.com
DAI homepage
https://www.dai.com
Dalberg homepage
https://www.dalberg.com
Ministry of Innovation and Technology of Ethiopia homepage
http://www.mcit.gov.et
SNV homepage
https://snv.org
JCC homepage
http://jobscommission.gov.et
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