ADB and Mastercard team to finance MSMEs in Asia and the Pacific

By Gloria Mathias

The Asian Development Bank (ADB) and the Mastercard Impact Fund, administered by the Mastercard Centre for Inclusive Growth, have signed an MoU to establish a partnership to support micro, small, and medium-sized enterprises (MSMEs) across Asia and the Pacific.

The initiative will initially target Georgia, India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. It will leverage a $5 million grant from Mastercard to financial institutions to catalyse lending toward MSMEs, with a focus on women-led or—- owned MSMEs and climate finance among small businesses. The grant will support up to $1 billion of ADB financing over 4 years, providing 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. “By combining the resources and expertise of ADB and Mastercard, this facility will unlock the potential of MSMEs, particularly those run by women or supporting climate finance, empowering businesses, and fostering inclusive and sustainable economic growth across the region.”

MSMEs in Asia and the Pacific face significant financing challenges, with nearly half either unserved or underserved, resulting in a credit gap estimated at $2.5 trillion. This is despite the sector’s pivotal role in driving economic growth, job creation, and achieving regional development goals.

“This partnership deepens the work we’re doing in the Asia and Pacific region to support entrepreneurs and small businesses, which are the lifeblood of communities and economies,” said Mastercard Vice Chairman and Mastercard Impact Fund Board Director Jon Huntsman. “By bolstering resilience to climate and economic shocks, we are putting more people, communities, and entrepreneurs on the path to financial inclusion and prosperity.”

Mastercard operates in more than 200 countries and territories worldwide. Together with its customers, it builds sustainable economies where everyone can prosper. It supports a wide range of digital payment choices, making transactions secure, simple, smart, and accessible.