Mastercard Accelerates Commitment to Digital Transformation in Africa

Rhea-AI Summary

Mastercard and the African Development Bank Group have introduced the Mobilizing Access to the Digital Economy (MADE) Alliance: Africa, aiming to provide digital access to 100 million individuals and businesses in Africa over the next decade. The initial focus includes supporting the agricultural sector and women, with a pilot program starting this year to assist three million farmers in Kenya, Tanzania, and Nigeria by offering digital identities and access to quality agricultural inputs. Mastercard will register 15 million users to its Community Pass platform within five years, and the African Development Bank Group will invest $300 million in digital infrastructure. The Alliance's goal is to promote sustainable digital access through a combined effort of public and private sector partners, including Equity Bank, Microsoft, Heifer International, and others.

Positive

• Launch of MADE Alliance: Africa to provide digital access to 100 million individuals and businesses in Africa over the next decade.
• Initial pilot program to support three million farmers in Kenya, Tanzania, and Nigeria.
• African Development Bank Group investing $300 million in digital infrastructure.
• Mastercard aims to register 15 million users on its Community Pass platform within five years.
• Participation from major organizations like Equity Bank, Microsoft, and Heifer International.
• Focus on supporting the agricultural sector and women.
• Alignment with U.S. Digital Transformation with Africa Initiative and African Union's Digital Transformation Strategy for Africa.

Negative

• The initiative may face challenges in implementation due to varying infrastructure and regulatory environments across different African countries.
• High financial and operational risks associated with large-scale digital transformation projects.
• Potential delays in achieving the targeted registration of 15 million users on Mastercard's Community Pass platform.

Insights

Financial Analyst

Mastercard's alliance with the African Development Bank Group to drive digital transformation in Africa is a significant strategic move. The commitment of $300 million from the Bank and Mastercard's goal to register 15 million users on their Community Pass platform highlights substantial investment in the continent's digital infrastructure. This alliance likely will result in increased adoption of Mastercard’s services, expanding its market penetration and potentially boosting revenue growth over the long term.

For short-term investors, the positive sentiment around Mastercard’s involvement in high-impact, socially responsible projects may stabilize or even elevate the stock price. However, it’s important to monitor how efficiently these initiatives are executed, as operational challenges in the region could pose risks. The impact on Mastercard's bottom line will not be immediate, given the 10-year horizon of the project.

Moreover, this initiative aligns with global trends towards financial inclusion and digital transformation, potentially positioning Mastercard as a leader in these areas. This strategic positioning can open doors to additional partnerships and funding, strengthening Mastercard’s market position.

Market Research Analyst

The announcement of the MADE Alliance: Africa is a notable development for Mastercard’s market expansion strategy. This partnership with established organizations such as Equity Bank and Microsoft enhances the credibility and potential success of the initiative. For investors, it’s essential to note that expanding digital access in Africa aligns with long-term global economic trends, particularly the growing importance of emerging markets.

From a market research perspective, focusing on agriculture and women indicates a strategic decision to target sectors with high impact potential. Agriculture employs a significant portion of the African workforce and empowering women economically can create more inclusive growth. This could mean increased adoption of digital services and financial products, expanding Mastercard's user base in these regions.

Investors should keep an eye on the progress of pilot programs and subsequent expansion phases. Early successes could signal scalability and the potential for significant market disruption, while challenges might indicate areas requiring additional resources or strategy adjustment. Overall, the initiative is well-aligned with Mastercard’s broader goals of fostering inclusive growth and digital economy engagement.

New alliance aims to enable digital access for 100 million individuals and businesses in Africa over next decade

Mastercard

PURCHASE, NY / ACCESSWIRE / May 28, 2024 / Mastercard and the African Development Bank Group today launched the Mobilizing Access to the Digital Economy (MADE) Alliance: Africa to extend digital access to critical services to 100 million individuals and businesses in Africa over the next 10 years. The announcement was made on the sidelines of the U.S.-Africa Business Forum hosted by the U.S. Chamber of Commerce.

The Alliance will initially focus on supporting the agricultural sector and women. Among the first efforts will be a pilot program launching this year to support three million farmers in Kenya, Tanzania and Nigeria by working with local banks to provide digital identities and access to high-quality seeds and agricultural inputs. The Alliance intends to expand to Uganda, Ethiopia, Ghana and the rest of the continent.

"Mastercard's work leading the new MADE Alliance: Africa aims to provide 100 million people greater digital access to critical services," said Michael Miebach, CEO of Mastercard. "Across Africa, people are driving new growth and opportunity, and Mastercard wants to support their success. This Alliance builds on the innovations and investments we are already making with partners in 45 countries to enhance Africa's digital infrastructure and accelerate inclusive growth."

As co-chairs, the African Development Bank Group will invest $300 million to support Alliance programs, providing funding for digital infrastructure and incentivizing ecosystem actors to enhance digital access, and Mastercard will register 15 million users in Africa onto its Community Pass platform within five years, with interoperable digital infrastructure to facilitate involvement from a range of ecosystem participants. Launched in 2020, Community Pass is a social enterprise at Mastercard that digitizes and connects remote, underserved communities to governments, NGOs and the private sector for access to critical services.

"The African Development Bank Group believes that digitalization via Mastercard Community Pass can play a vital role in increasing the adoption of agricultural technologies to help feed Africa, as well as improve incomes of millions of African smallholder farmers. Joining the Mobilizing Access to the Digital Economy Alliance: Africa will amplify and multiply the impact of the Bank's investments to build sustainable, climate-smart food systems across the continent. We applaud U.S. Vice President Kamala Harris' commitment to financial and digital inclusion in Africa," said African Development Bank Group President Dr. Akinwumi A. Adesina.

To enable more people to join the digital economy, an ecosystem of public and private sector partners is critical. The Alliance matches partners' complementary strengths in key geographies to promote sustainable digital access. Together, the partners will deliver connectivity, skilling, employment and digital access to financial and other critical services.

More than half a dozen organizations have committed to participate in the MADE Alliance: Africa at launch, including Equity Bank, Microsoft, Heifer International, Unconnected.org and Syngenta Foundation. The African Development Bank Group and Mastercard will serve as initial co-chairs of the effort.

The efforts of the MADE Alliance: Africa will support the U.S. Digital Transformation with Africa Initiative (DTA) and the African Union's Digital Transformation Strategy for Africa (DTS). It also ties into other business objectives announced this year focused on Africa, including:

• A memorandum of agreement with the International Trade Administration, a bureau within the U.S. Department of Commerce, to advance digital access and inclusion in Africa based on a mutual interest to support the aims of the U.S. Government's Digital Transformation with Africa initiative and MADE Alliance: Africa. This collaboration builds on Mastercard hosting U.S. Secretary of Commerce Gina Raimondo during AmCham in Nairobi in April for a "Digital Showcase" on best practices and lessons learned for building and scaling digital solutions across the continent of Africa.
• EdTech Africa, a new partnership between the Government of Kenya, Kenyan President Ruto and the U.S., which builds on Mastercard's existing multi-million-dollar investments with the Atlanta University Consortium (AUC) Data Science Initiative and Howard University's Center for Applied Data Science & Analytics Initiative. This effort cultivates educational exchanges between Historically Black Colleges and Universities (HBCUs) and African scholars in the ever-evolving landscape of emerging technology and is an example of innovation, talent empowerment and cross-cultural connectivity across the African diaspora, poised to drive forward education and technology for young leaders of Africa and America.
• A new partnership involving Mastercard Community Pass, the Co-operative Bank of Kenya, the Shell Foundation, and the United Kingdom's Foreign, Commonwealth and Development Office that gives smallholder farmers access to a digital marketplace and enables affordable credit to buy clean energy tools that support farmers' incomes, such as solar-powered irrigation pumps. First announced in January, the effort aligns to Mastercard's involvement with two USAID initiatives: the President's Emergency Plan for Adaptation and Resilience (PREPARE) and the Women in the Digital Economy Fund (WiDEF).

Bringing together public and private sector leaders will create and enhance accessible, affordable and trusted technology and digital tools that are scalable, enabling more people to join the digital economy.

Media Contacts

Jessica Jeng-Mitchell, Mastercard

Jessica.Jeng-Mitchell@mastercard.com

About Mastercard (NYSE: MA)

Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

www.mastercard.com

Originally published by Mastercard

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SOURCE: Mastercard

View the original press release on accesswire.com

FAQ

What is the MADE Alliance: Africa by Mastercard?

The MADE (Mobilizing Access to the Digital Economy) Alliance: Africa is an initiative by Mastercard and the African Development Bank Group to provide digital access to 100 million individuals and businesses in Africa over the next decade.

What sectors will the MADE Alliance: Africa initially focus on?

The MADE Alliance: Africa will initially focus on supporting the agricultural sector and women.

Which countries will be part of the initial pilot program of the MADE Alliance: Africa?

The initial pilot program will support three million farmers in Kenya, Tanzania, and Nigeria.

How much is the African Development Bank Group investing in the MADE Alliance: Africa?

The African Development Bank Group is investing $300 million in the MADE Alliance: Africa to support digital infrastructure.

What is Mastercard's role in the MADE Alliance: Africa?

Mastercard will register 15 million users in Africa onto its Community Pass platform within five years and co-chair the initiative with the African Development Bank Group.

Which organizations are participating in the MADE Alliance: Africa?

Organizations participating in the MADE Alliance: Africa include Equity Bank, Microsoft, Heifer International, Unconnected.org, and Syngenta Foundation.

How does the MADE Alliance: Africa align with other initiatives?

The MADE Alliance: Africa supports the U.S. Digital Transformation with Africa Initiative and the African Union's Digital Transformation Strategy for Africa.