ADB, Mastercard partner to boost MSMEs in Asia, Pacific

The Asian Development Bank (ADB) and the Mastercard Impact Fund partnered to support micro, small, and medium-sized enterprises (MSMEs) in Asia and the Pacific, as per ADB’s statement on Thursday.

The initiative will focus on Georgia, India, Indonesia, Malaysia, the Philippines, Thailand, and Viet Nam. It aims to boost lending to MSMEs, particularly those led or owned by women and those involved in climate finance.

Mastercard has provided a $5 million grant to financial institutions to kickstart this effort. The grant will support up to $1 billion of ADB financing over four years, offering risk-reduction capital, performance incentives, and capacity building for financial institutions.

“MSMEs are the backbone of economies across Asia and the Pacific, yet many struggle to obtain adequate finance,” said ADB’s Vice-President for Market Solutions Bhargav Dasgupta.

Through the collaboration of ADB and Mastercard, this initiative will empower MSMEs, especially those led by women or involved in climate finance, to drive inclusive and sustainable economic growth in the region, Dasgupta added.

Attribution: The Asian Development Bank report

Subediting: M. S. Salama