New partnership between DFC and Mastercard, with focus on Africa, could provide up to $50 million in financing to enable digitization and financial inclusion

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New partnership between DFC and Mastercard, with focus on Africa, could provide up to  million in financing to enable digitization and financial inclusion

U.S. International Development Finance Corporation (DFC) and Mastercard announced a partnership at the conclusion of the U.S.-Africa Leaders Summit to increase support for financial institutions, agricultural and technology companies, and other businesses involved with Mastercard Community Pass, a digital platform created to address infrastructure issues that arise in digitising rural communities, such as unreliable connectivity, low smartphone ownership, and lack of co-location.

According to DFC CEO Scott Nathan, “DFC places a premium on mobilising private sector investment in building up digital infrastructure.” “DFC and Mastercard’s work to support financial inclusion and enhance access to digital tools will help us move closer to our common objective of closing the digital divide,” the statement reads.

Through this partnership, DFC will endeavour to promote prospective investments in Community Pass network organisations of up to $50 million. In addition to being active in India, Community Pass is expanding its footprint in five African nations: Kenya, Tanzania, Uganda, Mozambique, and Mauritania.

By 2027, Mastercard hopes to have 30 million customers worldwide and 15 million users of Community Pass in Africa. This partnership between DFC and Mastercard aims to improve access to essential services in underserved communities by expanding the network of financial institutions and service providers on the Community Pass platform, with the overarching objective of creating a more inclusive and sustainable digital economy for everyone.

Service providers can increase access to necessary services and lower the cost of providing them with Community Pass. The platform’s cutting-edge features and safe data platforms assist in enabling digital transactions. For instance, financial institutions and agricultural technology companies in Africa are utilising Community Pass to digitise agricultural value chains, allow credit access, and establish a larger pool of buyers, assisting smallholder farmers in receiving payments more quickly and for a higher amount.

Businesses, governments, and NGOs may serve remote and frequently offline areas thanks to the Community Pass platform. Farmers, for instance, have access to high-quality seeds, fertilisers, and purchasers, as well as to buyers, payments, and credit, according to Tara Nathan, executive vice president of humanitarian and development at Mastercard. “Our collaboration with DFC is an example of how public funds can be paired with private sector technology and knowledge to produce a whole that is greater than the sum of its parts.”

Mastercard is committed to promoting economic development and financial inclusion in Africa, as seen by its focus on developing and scaling its Community Pass platform. Millions of farmers in Africa use Community Pass to access markets, expand their businesses, and improve their financial security. Mastercard is working to connect to people at the base of the pyramid with digital tools in collaboration with partners like DFC, as well as other international organisations, governments, banks and fintechs, and more. Through its acclaimed Start Path initiative, Mastercard has furthermore assisted more than a dozen African start-ups.

This morning, Tara Nathan from Mastercard and Scott Nathan from DFC will discuss potential for enabling agricultural development, climate adaption, better health outcomes, and other topics as well as ways to encourage private sector investment in Africa. A livestream of the conversation, which is being hosted by the Center for Global Development, will be available.

News Summary:

  • New partnership between DFC and Mastercard, with focus on Africa, could provide up to $50 million in financing to enable digitization and financial inclusion
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