Mastercard Foundation has launched its Start Path Small Business programme to give startups the chance to collaborate with the company to scale solutions that drive simple, secure digital experiences for SMEs.
During the four-month programme, selected startups will have the opportunity to leverage Mastercard’s network and SME expertise to uncover product partnerships, scale their companies and power solutions that drive safe, secure and simple experiences.
Mastercard Foundation President and CEO Reeta Roy
The programme is currently receiving applications from startups that are innovating across a range of digital services for SMEs including, accounting software, e-commerce solutions, lending platforms, payment technologies, digital banking and much more.
Selected startups will demonstrate strong synergies with Mastercard’s approach to helping entrepreneurs around the world grow and thrive by empowering them with digital payment solutions, data insights and the tools to run their enterprises more efficiently and securely.
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The Mastercard Foundation Africa Growth Fund, a Fund of Funds that works through African investment vehicles to support early-stage, growth-oriented small and medium-sized enterprises (SMEs) on the continent, has launched a new USD$200 million fund.
African SMEs struggle to obtain the finance they require to expand, limiting their potential. The Mastercard Foundation Africa Growth Fund addresses this issue by investing in and strengthening African investment vehicles, which in turn help African SMEs.
Joseph Nsengimana, Regional Director, Mastercard Foundation Centre for Innovative Teaching and Learning in ICT
The Fund of Funds, in addition to providing capital for investment vehicles, provides a business development facility for their portfolio companies.
The Fund-of-Funds initiative will use gender-lens investing (GLI) principles to support the Mastercard Foundation’s Young Africa Works strategy, which aims to provide 30 million young Africans, particularly young women, with dignified and fulfilling work by 2030.
A promising pipeline of 180 diverse investment vehicles, including Early-stage, Growth, Debt, and Seed VC Funds, as well as other non-traditional funds, has already been built. Two investment vehicles have already been approved for funding and will be announced shortly.
Implementation and key actors
A consortium of partners led by Mennonite Economic Development Associates (MEDA) and including Investisseurs & Partenaires (I&P), Entrepreneurial Solutions Partners (ESP), Genesis Analytics, the Criterion Institute, and Africa Communications Media Group implements the Mastercard Foundation Africa Growth Fund.
I&P is the Fund Advisor for the Fund of Funds, and is in charge of sourcing, evaluating, and supporting the investment vehicles.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
To help ed-tech startups weather the devastating impacts of Covid-19 pandemic on their operations, venture capital firm, Investisseurs & Partenaires (I&P) has partnered with the Mastercard Foundation to support businesses in the education sector. The partnership creates a US$10.5 million three-year programme that will accelerate 30 education entrepreneurs Ghana, Ivory Coast and Senegal by addressing key challenges related to access, quality, and relevance faced within the sector.
Emilie Debled, executive director for strategic developments and partnerships at I&P
These include funding for education businesses in the recovery phase seeking to adapt and expand skills development through technical assistance to accelerate SMEs’ digital transformation, education opportunities through innovative social inclusion mechanisms, and data and advocacy through robust impact management systems and policy dialogue. Startups and SMEs will be selected based on their capacity to offer quality education and training, while promoting employability and youth empowerment within their countries of operations.
“As a pioneering impact investment group, we have witnessed the gap between the available skills of young women and men and the needs of the job market. While African governments have limited means to solve these problems, the private sector is increasingly perceived as a possible complementary player that could boost access to, and the quality and relevance of education,” said Emilie Debled, executive director for strategic developments and partnerships at I&P.
By accelerating the work of edupreneurs and SMEs in the education space, the programme aims to impact 95,000 beneficiaries, including students, trainees, and ed-tech platform users served by these businesses, out of which 55 per cent will be women and 33 per cent disadvantaged youth.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Kenya National Chamber of Commerce and Industry (KNCCI) and the Mastercard Foundation have entered into a partnership that will see 25,000 Micro, Small and Medium-Sized Enterprises (MSMEs) in Kenya benefit from an interest free, zero fee short-term concessional loan. The COVID-19 Recovery and Resilience Program will be implemented by KNCCI through its county chapters across the 47 counties.
Here Is What You Need To Know
Through the Mastercard Foundation COVID-19 Recovery and Resilience Program, KNCCI will target businesses owned by youth (18–35 years), women-owned (18–70 years) and enterprises that support a large number of youth (18–35 years) that have been impacted by the COVID-19 pandemic. The aim of this program is to assist the MSMEs to ensure business continuity and sustainability.
The target businesses need to have been in existence for at least one year and have been affected by the COVID-19 pandemic. These businesses will mainly be drawn from the sectors of hawkers, Jua Kali, retailers, the fashion industry and restaurants.
The facility is a revolving fund, available to repeat borrowers upon repayment of the loan within two months. The funds will not be available to businesses that sell drug-related substances including alcohol and tobacco, manufacture weapons and are involved in war-related activities, in gambling and betting sectors, in sex-related industries, or are owned by state or parastatal actors.
KNCCI will pre-screen applications from eligible applicants. Applications received from affected businesses will be pre-screened against a set eligibility criterion before approval and the disbursement of funds. The loans will be administered by Grassroots Business Fund (GBF) and Fourth Generation Capital (4G Capital).
How To Apply
Applications can be accessed through the KNCCI website (www.kenyachamber.or.ke ) and from any of the KNCCI offices across the country.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
WomenWork, in partnership with the Mastercard Foundation, has launched Rebuild, a program that offers emergency loans and business expertise to women entrepreneurs in Kenya. WomenWork, founded in Kenya, describes itself as a ‘technology-driven company that focuses on the advancement of African women entrepreneurs through digital peer-to-peer communities, knowledge enhancement, and access to capital to improve their chances of success‘.
Daniel Hailu, Regional Head Eastern and Southern Africa, Mastercard Foundation
“The Rebuild Program is an exciting and significant milestone in the history of our organization. It provides us with the opportunity to offer the much-needed support to our community of women entrepreneurs who are facing significant challenges arising from the effects of COVID-19 and have either closed or are at the point of almost closing. We hope that our emergency funding will enable women to survive these devastating effects of COVID-19 on their businesses, and hopefully, protect against imminent job losses and stabilize their businesses through this period,” said Asha Mweru, Co-founder WomenWork.
Here Is What You Need To Know
The Rebuild Program includes an emergency interest-free short-term working capital loan for businesses, expert-driven business training and support from an engaging peer community of other women entrepreneurs — all delivered online.
This is the first time that WomenWork is running such an initiative in partnership with the Mastercard Foundation in Kenya. The emergency loan facility is aimed at providing a soft landing against COVID-19 which has disproportionately affected women-owned businesses.
WomenWork says the commitment of Kenya Shillings 1.5 billion from the Mastercard Foundation to help to cushion the economy in Kenya will be channelled through four lead partner organisations in support of a series of interventions that will facilitate business continuity for over 25,000 Micro, Small, and Medium Enterprises with less than ten employees and a turn-over below KES. 500,000. The loans are primarily targeted at businesses owned and run by the youth, particularly young women such as those in the company’s network.
The short-term emergency loans are for job protection and working capital payable in two months with no interest, collateral or fees to enable the businesses to survive through the pandemic and beyond.
“Even in ordinary times, women-owned businesses face difficulties accessing lines of credit. These challenges have been exacerbated by COVID-19; a pandemic which generally and fundamentally threatens progress on gender equality. We all need to take extraordinary measures in response, becoming even more intentional about supporting women-led enterprises and safeguarding the jobs they create. That is the driving impetus for this collaboration with WomenWork, who we are glad to welcome as a new partner,” said Daniel Hailu, Regional Head Eastern and Southern Africa, Mastercard Foundation
Mastercard ‘s women loans program in Kenya will go a long way in assisting women-led businesses
The eligibility for the loans program includes an outline of the proposed use of funds and the ability to repay.
Individual businesses will access loans starting from a minimum of KES. 31,200.
Borrowers can apply for additional emergency loans after repayment of the first one.
The loan facility is open to businesses across all sectors that are operational in Kenya for at least six months and have 51% or more women shareholding, 50 employees or less, and generate revenues of up to five million Kenya Shillings per annum.
Successful applicants of the Rebuild Program by WomenWork in partnership with the Mastercard Foundation will receive the emergency funds directly to their mobile money accounts.
In addition to the funding, program participants will not only receive a business needs assessment and be able to address any gaps with business experts but also join a network of diverse women entrepreneurs for peer support. Building off of the existing #WomenWorkKE Facebook group, all aspects of the program will be delivered online to meet the changing needs and preferences of women entrepreneurs.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Startups, small and medium scale businesses in Ethiopia have a new support from Mastercard Foundation. The Jobs Creation Commission of Ethiopia, the Mastercard Foundation and First Consult have announced the creation of the Mastercard Foundation MSE’s Resilience Facility. This is an emergency program that will support micro and small-sized enterprises (MSEs) and start-ups in Ethiopia during the economic downturn caused by the COVID-19 pandemic.
Alemayehu Konde Koira, Country Head, Ethiopia
“Young Africa Works is about connecting young people to opportunity, enabling them to build and sustain their livelihoods. To move forward with that agenda, we first have to safeguard the opportunities that already exist but are threatened by COVID-19. We can then build on that foundation,” said Alemayehu Konde Koira, Country Head, Ethiopia, at the Mastercard Foundation, in a press release.
Here Is What You Need To Know
The program, with an initial commitment of approximately USD 24.8 million from the Mastercard Foundation COVID-19 Recovery and Resilience Program , will ensure MSEs remain solvent, retain their employees, and are able to create increasingly innovative work opportunities in the wake of COVID-19.
The implementation and monitoring of the Mastercard Foundation MSE’s Resilience Facility will be undertaken collaboratively by the three organizations. The provision of financial assistance, in the form of grants and soft loans, via participating institutions — Banks, Microfinance, and Business Development Services — to eligible, qualified micro- and small-sized enterprises, both formal and informal.
The amount and type of financial support provided will vary depending on the size of enterprise and their needs and will focus on supporting MSEs and start-ups within the following two categories:
High Vulnerability: Registered micro enterprises and informal firms that are self-employed.
Moderate Vulnerability: Small enterprises facing extreme slowdown within service-related businesses and that are at risk of major interruption or cancellation of orders.
The program, to be implemented in Addis Ababa, is anticipated to:
Prevent 24,000 MSEs from going bankrupt and closing permanently.
Prevent more than 50,000 employees from losing their jobs.
Equip three financial institutions to effectively partner with MSEs through collateral free loans and increase their adoption rate of digitally based micro credit.
The creation of the Mastercard Foundation MSE’s Resilience Facility is aligned to the Foundation’s Young Africa Works strategy. Young Africa Works, developed in consultation with young people, policymakers, educators, and entrepreneurs, is Mastercard Foundation’s strategy that aims to enable 30 million young people in Africa, with 10 million in Ethiopia, to access dignified and fulfilling work over the next 10 years.
“This intervention, by filling the critical gap needed to serve MSEs, will significantly enhance the government’s proactive measures to avert the impact of the pandemic and keep enterprises solvent and in business. The Jobs Creation Commission estimates that close to 1.4 million wage jobs are under threat and approximately 1.9 million people in vulnerable employment will lose their income due to the economic impact of COVID-19. Enterprises and informal businesses, that are least able to withstand this economic slowdown, will bear the brunt of these losses. The least served and vulnerable young people in our country will be impacted,” said Jobs Creation Commission Commissioner, Dr. Ephrem T Lamango.
How And When Can Startups Begin Pitching?
According to the press release, once participating institutions have been onboarded, the Jobs Creation Commission and First Consult, a leading consulting firm specialising in the design and delivery of interventions that support private sector advancement and the overall economic development of Ethiopia, will put out a call to MSEs and startups to apply for funding, which will be announced soon.
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer.
Mastercard Foundation, in partnership with Ghana’s National Board for Small Scale Industries (NBSSI), has announced the creation of an Emergency Program to support micro-, small-, and medium-sized enterprises (MSMEs) and startups in Ghana during the economic downturn caused by the COVID-19 pandemic.
Mastercard Foundation President and CEO Reeta Roy
“The effects of COVID-19 are multifaceted and unfolding rapidly. We expect that the prospects of young people in Ghana, and the rest of Africa, will be deeply impacted,” says Mastercard Foundation President and CEO Reeta Roy
Here Is All You Need To Know
The Program, with an initial commitment of approximately GHC90 million from Mastercard Foundation and NBSSI, is in line with the government’s support for Ghanaian MSMEs and will receive additional investment from other donors and institutions.
The Program will focus on supporting the following MSMEs and startups:
MSMEs who need support to survive the COVID-19 pandemic.
2. Businesses in growth sectors where the employment of young people, especially young women, will be negatively impacted as a result of business operation disruptions, supply chain challenges, liquidity shortages, declining sales and profits, and business closures.
3. Businesses providing services that will be in demand during the pandemic and that have the potential to grow and positively impact communities affected by COVID-19.
4. Businesses that will focus on digitization to support MSMEs.
The creation of the NBSSI Mastercard Foundation Recovery and Resilience Program for MSMEs follows the Foundation’s recent announcement of its West, Central and Northern Regional office opening in Accra to drive its Young Africa Works strategy in the region.
Young Africa Works, developed in consultation with young people, policymakers, educators, and entrepreneurs, is Mastercard Foundation’s strategy that aims to extend dignified work to 30 million young people in Africa, with 3 million in Ghana, 70 per cent of which will be young women, over the next 10 years.
“We will continue working with young people to better understand their needs, amplify their voices, and co-create solutions that will enable them to reach their full potential. We are also keenly considering what lessons we can glean during this time to better equip young people for a future in which work will be increasingly digital.”
How Startups May Apply To The Fund
The NBSSI Mastercard Foundation Recovery and Resilience Program for MSMEswill provide financial assistance, in the form of grants and soft loans, via participating institutions — banks, microfinance, mobile lenders, NGOs and Business Development Services — to eligible, qualified micro-, small-, and medium-sized enterprises, both formal and informal.
The amount and type of financial support provided will vary depending on the size of enterprise, their need and repayment capacity.
Once participating institutions have been onboarded, NBSSI will put out a call to MSMEs and start-ups to apply for funding via a centralized web-based platform.
Information will also be made available via NBSSI’s 178 Business Advisory Centers and 37 Business Resource Centers across the country.
The Executive Director of NBSSI, Kosi A. Yankey-Ayeh, stated that “MSMEs are always at the heart of the work of NBSSI. It was based on this that the MSME Emergency Program was conceived and set up, and it is the first of a series of interventions outlined to mitigate the impact of the COVID-19 pandemic on MSMEs.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com
Ghanaian entrepreneurs have a new fund around. The Mastercard Foundation and Ghana ’s National Board for Small Scale Industries (NBSSI) has entered into a GH¢78 million three-year partnership to increase employment opportunities for young people in the Ghana.
Kosi Yankey — Ayeh, Executive Director of NBSSI
“Seventy percent of those targeted will be young women,” Mr Kosi Yankey — Ayeh, Executive Director of NBSSI said.
Here Is All You Need To Know
According to Mr Kosi Yankey — Ayeh, the partnership, forms part of Young Africa Works in Ghana scheduled to commence in January 2020.
Over the course of the next 10 years, Young Africa Works would enable three million young people to access dignified and fulfilling work.
“As a Young Africa Works partner, NBSSI will provide growth opportunities for existing young entrepreneurs by facilitating access to finance, markets and business development services,” he said.
Yankey — Ayeh said the partnership would create access to dignified work for about 39,000 youth and micro, small and medium-sized enterprises (MSMEs) in Ghana.
He also noted that the partnership is aligned with the government’s Ghana Beyond Aid agenda and focused on transforming Ghana’s MSMEs into engines of economic growth.
How Businesses Can Benefit From The New Investments
“The project will leverage existing NBSSI flagship programs such as the Apprenticeship to Entrepreneurship (A2E), Innovation, Creativity and Entrepreneurship (ICE) Hubs, and the Kaizen Programme,” said Yankey — Ayeh.
Yankey — Ayeh said the programme would be delivered through the 178 Business Advisory Centers/Business Resource Centers across the country and in collaboration with other Young Africa Works partners.”
Mr Nathalie Akon Gabala, Regional Director, Western, Central and Northern Africa, Mastercard Foundation, said: “NBSSI has the largest footprint of any agency in Ghana through its work with entrepreneurs and women-led businesses”.
Gabala said with its presence in 178 districts across the country, they are uniquely positioned to help advance Young Africa Works’s objectives to ensure young people secure work that is both dignified and fulfilling.
The Mastercard Foundation is an independent governing body whose work is guided by its mission to advance learning and promote financial inclusion for people living in poverty.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
As part of efforts aimed at adopting the use of information communications technology (ICT) to create cutting edge innovative measures aimed at making teaching more impactful especially in Africa, The Mastercard Foundation Centre for Innovative Teaching and Learning in ICT has issued a Request for Proposals (RFP) inviting growth-stage, educational technology (EdTech) innovators to apply for an opportunity to grow their ventures while contributing to improving the quality of education in Africa. According to MasterCard Foundation, this is a one in a million opportunity for tech-preneurs in Africa to test their mettle.
Joseph Nsengimana, Regional Director, Mastercard Foundation Centre for Innovative Teaching and Learning in ICT
This is the first RFP to be offered by the Centre for Innovative Teaching and Learning in ICT located in Kigali, Rwanda. The Centre works with governments, EdTech developers, and other stakeholders to identify and eliminate the barriers facing young people pursuing secondary education in Africa. Selected EdTech companies will be supported for a minimum of 12 months and benefit from a comprehensive package that includes: customized mentorship, financial support, and the opportunity to test, validate and scale their business.
At a recent ministerial roundtable hosted by the Mastercard Foundation in Botswana, education ministers, African Union representatives, academics, young people, and EdTech entrepreneurs met to discuss how EdTech can improve outcomes for teachers and students. During these consultations, two priority areas emerged – professional development and enriched learning content. Innovators are invited to submit proposals that will either: enhance and increase accessibility and affordability of professional development for in-service teachers, which also minimizes their out-of-classroom time; or create and deliver enriched learning content that improves quality, relevance, and accessibility to both in-school and out-of-school secondary school learners.
“Our aim is to create an active connection between those who need the solutions and those who create them,” said Joseph Nsengimana, Regional Director, Mastercard Foundation Centre for Innovative Teaching and Learning in ICT. “Solutions often do not consider the on-the-ground limitations from both a training perspective and the technical environment. We’re talking about co-creation every step of the way.”
Working with EdTech entrepreneurs and governments, the Centre for Innovative Teaching and Learning in ICT will support entrepreneurs and scale up their innovations. Eligible organizations must meet the following criteria: a registered company that is now post-product with the potential to scale (typically in operations for two years or longer); company is majority African-led and/or owned; a for-profit or non-for-profit operating model is in place; the company is already operating in, or interested in moving into, the education market in Africa; and the company’s product specifically addresses the professional development of teachers; and/or the need for enriched and accessible learning content for learners.
The Centre was established as part of the Mastercard Foundation’s Young Africa Works Strategy to enable 30 million young people to secure dignified and fulfilling work by 2030. Technology has the power to strengthen and improve how education is delivered across the continent, however, education technology entrepreneurs and implementers often struggle to grow and scale their solutions.
Access to quality education is often difficult, especially for young people living in rural and remote communities. While great strides have been made in access to primary education, only 43 percent of youth in Sub-Saharan Africa enroll in secondary education. Educational technology can be a digital bridge to those hardest to reach. For the vast majority of youth, secondary school is their springboard to employment or to entrepreneurship. In order to find work that provides a decent living, it is crucial that they are equipped with strong foundational, technical, and soft skills.
In addition to accessibility, secondary education systems in Africa suffer from a lack of qualified teachers, due in part to conflict, difficult working conditions, poor remuneration, and lack of support. Professional development will improve the quality of teaching among existing teachers, and it may revitalize the profession by providing teachers an opportunity to grow. The deadline for submissions is November 21, 2019.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
