Mastercard Foundation and Kifiya Financial Technology PLC team up to provide uncollateralized digital credit products to over 477,800 MSMEs

The Mastercard Foundation, in collaboration with Kifiya Financial Technology PLC, has launched a groundbreaking program that aims to provide access to smartphones for 425,000 women through device financing. This initiative is part of the Sustainable Access to Finance to Enable Entrepreneurship (SAFEE) program, which is set to revolutionize the financial sector in Ethiopia.

With a budget of US $100 million, the SAFEE program will unlock resources from banks and introduce new financial models and products to facilitate access to uncollateralized financial credit for micro, small, and medium enterprises (MSMEs). The program builds on the success of the Michu pilot project, which enabled over 148,000 MSMEs to access working capital credit in just 14 months.

Through partnerships with six banks, SAFEE aims to enable nearly 478,000 MSMEs to access digital credit products, with a specific focus on providing mobile device financing for 425,000 young women. Over the next five years, the program is expected to create job opportunities for 2.18 million young people, with a strong emphasis on supporting vulnerable groups such as women, persons with disabilities, refugees, and Internally Displaced People.

The SAFEE program addresses the financing gap for MSMEs in Ethiopia and Sub-Saharan Africa, estimated at US $4.3 billion and US $331 billion, respectively. By leveraging data-driven Artificial Intelligence (AI) credit scoring, the program aims to provide tailored financial products that meet the needs of MSMEs while reducing the costs of finance for banks.

This announcement was made during the “Startup Ethiopia” event, showcasing the commitment of the Mastercard Foundation and Kifiya Financial Technology PLC to drive inclusive access to financial services and promote sustainable livelihoods for young people in Ethiopia.