FCC

ADB and Mastercard Partner to Boost MSMEs in Asia-Pacific

2024-12-05

The Asian Development Bank (ADB) and the Mastercard Impact Fund have announced a partnership aimed at addressing the financial challenges faced by micro, small, and medium enterprises (MSMEs) across Asia and the Pacific. The partnership, backed by a $5 million grant from Mastercard, will focus on seven countries: Georgia, India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.

This initiative aims to close the region's significant credit gap, estimated at $2.5 trillion, by encouraging financial institutions to increase lending to MSMEs. The partnership prioritizes women-led businesses and those involved in climate finance, supporting sustainable economic growth.

ADB’s Vice President for Market Solutions, Bhargav Dasgupta, emphasised the importance of empowering MSMEs for inclusive growth, while Mastercard’s Vice Chairman, Jon Huntsman, highlighted the broader impact of financial inclusion for entrepreneurs.

The collaboration is expected to support up to $1 billion in ADB financing over the next four years, helping MSMEs thrive in a rapidly evolving economic landscape.