Mastercard Foundation to pledge $3.2 million to save Ethiopian SMEs

The Mastercard Foundation has committed $3.2 million to save 11 small to medium-sized enterprises (SMEs) in Ethiopia this week.

The 11 textile factories will be repurposed to develop personal protective equipment (PPE) which in turn will be sold within the country and internationally in the fight against coronavirus.

The Mastercard Foundation has launched the scheme as part of its Recovery and Resilience Program, which has been created with the aim of supporting businesses overcome the short-term damage of the pandemic, and build long-term resilience to an uncertain economy.

The Head of the Mastercard Foundation in Ethiopia, Alemayehu Konde Koira, has said “In Ethiopia, like in many developing economies, SMEs make a significant contribution to local employment and to the overall gross domestic product through their exports.”

“With small reserves and limited working capital, many SMEs would struggle to survive a prolonged period of reduced economic activity, so the timing of this partnership is critical".

The six-month program promises to save up to 1,060 jobs, the majority of which are female.  

Semhal Guesh, CEO of KABANA Leather and Chair of the consortium which will be partnered with the Foundation said, "We would have eventually had to close our doors, were it not for this program.”

“We are empowered and excited to be participating in the fight against the COVID-19 pandemic”.

The Foundation has also pledged $40 million to Africa’s CDC Partnership to Accelerate Covid-19 testing.

Photo:The Mastercard Foundation