Mastercard Foundation Announces Partnerships To Drive Covid-19 Recovery

The Mastercard Foundation today announced a series of key partnerships that will bring relief and build the resilience of micro-, small- and medium- enterprises (MSMEs) in Kenya.

As the effects of the COVID-19 global pandemic ripple through economies, women and young people are expected to bear the greatest burden as a result of reduced employment opportunities, layoffs and poorly performing MSMEs, most of which are led and owned by women and young people.

The organizations that will start rolling out the interventions targeting MSMEs this month, through support from the Mastercard Foundation COVID-19 Recovery and Resilience Program, are Kenya Private Sector Alliance (KEPSA), WomenWork Network, Kenya National Chamber of Commerce & Industry (KNCCI), and TechnoServe, with technical support from the Grassroots Business Fund and 4G Capital.

The commitment from the Mastercard Foundation to the four lead partner organizations totals USD15 million and will support a series of interventions that will facilitate business continuity, especially for those MSMEs led and owned by young women and help to cushion the economy in Kenya.

“MSMEs are the backbone of the economy and they need support more than ever.  The Mastercard Foundation is proud to work with these partners to deliver tailored support to tens of thousands of MSMEs with the aim of helping them sustain their activities and continue to provide opportunities for dignified work,” said Daniel Hailu, Regional Head Eastern, and Southern Africa at the Mastercard Foundation.

KEPSA, in close collaboration with the Government of Kenya, will target 400 MSMEs to access an emergency finance facility that will be managed by Grassroots Business Fund as the independent Fund Manager. The partnership will include the rollout of a virtual MSMEs business recovery hub to provide business development service as well as increasing KEPSAs ability to support women businesses.

The partnership with WomenWork Network through their Rebuild Program will focus on low-cost loans to women-led MSMEs to enable the businesses to withstand the significant revenue drops they are currently experiencing. The low-cost emergency loans will enable them to sustain jobs that may otherwise have been lost and access tailored online business training. The Rebuild program will be available to the over 4,000 women who are members of the  #Womenworkke Facebook group.

The Kenya National Chamber of Commerce and Industry (KNCCI) will run interventions that include low-cost business loans to deserving MSMEs and a trade digital platform to support an e-commerce ecosystem to make the enterprises more agile and resilient. The intervention will target 15,000 direct members of KNCCI, supplemented by 85,000 KNCCI association members, especially focusing on the hawkers, the fashion industry, Jua Kali, retailers, and restaurants.

Grassroots Business Fund will manage the facility that will provide concessionary loans to members of the 3 organizations, KNCCI, KEPSA, and WomenWorks Networks. The loans will boost the microenterprises by providing them with working capital that allows them to navigate challenges brought on by the COVID-19 health crisis. The loans to microenterprises will target businesses country-wide and priority will be given to youth and women-led enterprises and to certain sectors such as agriculture, retail, healthcare.

TechnoServe will work with 28,000 micro retailers, primarily women and young people, through the Micro-enterprises Strengthened for Pandemic Adaptation and Resilience in Kenya (mSPARK) program, providing targeted digital technical assistance and facilitating financial support through financial-technology credit provider 4G Capital. The emergency repayable business grants will support overhead expenses suc