(MENAFN- KNN India)
New Delhi, Dec 2 (KNN) In a landmark move to address the financial challenges faced by micro, small, and medium enterprises (MSMEs) across Asia and the Pacific, the Asian Development bank (ADB) and the Mastercard Impact Fund have announced a new collaboration.
This partnership, facilitated by the Mastercard Center for Inclusive Growth, aims to unlock critical financial resources for MSMEs, which are vital to the region's economic development.
The initiative will initially focus on seven countries-Georgia, India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam-and is backed by a USD 5 million grant from Mastercard.
The goal is to help financial institutions reduce risk and incentivise them to increase lending to MSMEs.
Through this partnership, ADB and Mastercard aim to bridge the region's significant credit gap, which is estimated at USD 2.5 trillion.
Despite MSMEs being the backbone of the region's economies, nearly half remain unserved or underserved by financial institutions.
The program will prioritise businesses that are women-led or -owned, as well as those involved in climate finance, helping to empower underrepresented groups and promote sustainable economic growth.
ADB's Vice President for Market Solutions, Bhargav Dasgupta, highlighted the importance of MSMEs, stating,“By combining the resources and expertise of ADB and Mastercard, this facility will unlock the potential of MSMEs, particularly those run by women or supporting climate finance, empowering businesses, and fostering inclusive and sustainable economic growth across the region.”
The collaboration is expected to support up to USD 1 billion in ADB financing over the next four years.
Jon Huntsman, Vice Chairman of Mastercard and Board Director of the Mastercard Impact Fund, emphasised the broader impact, saying,“This partnership deepens the work we're doing in the Asia-Pacific region to support entrepreneurs and small businesses, putting more people on the path to financial inclusion and prosperity.”
As MSMEs are essential for job creation and economic resilience, this partnership aims to equip them with the tools necessary to thrive in a rapidly changing economic landscape.
(KNN Bureau)
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