BAKU, Azerbaijan, November 29. The Asian Development Bank (ADB) and the Mastercard Impact Fund have formed a partnership to support micro, small, and medium-sized enterprises (MSMEs) across Asia and the Pacific, Trend reports.
The initiative, focusing on Georgia, India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, aims to provide $5 million in grant funding to financial institutions. This will catalyze lending to MSMEs, particularly those led by women or focused on climate finance.
The partnership will leverage up to $1 billion in ADB financing over the next four years, offering risk-reduction capital and capacity-building for financial institutions. The collaboration seeks to address the $2.5 trillion credit gap faced by MSMEs in the region, which play a critical role in economic growth and job creation.
"By combining our resources, we will help unlock the potential of MSMEs, fostering inclusive and sustainable growth," said Bhargav Dasgupta, ADB’s Vice-President for Market Solutions.
Jon Huntsman, Vice Chairman of Mastercard, added, "This partnership supports entrepreneurs and small businesses, helping them become more resilient to climate and economic shocks."
This partnership marks a significant effort to address MSME financing challenges and promote financial inclusion in the region.