Kenya: Public-Private Partnership to Economically Empower Women and Youth
Peter Omondi- NewsfromAfrica
New York, USA – – The MasterCard Foundation, Equity Group Foundation and Equity Bank Thursday committed – at the Clinton Global Initiative’s Annual Meeting – to advance the educational, financial and entrepreneurial capacity of more than 600,000 Kenyan women and youth. The goal of the commitment, catalyzed by a US$15.5 million contribution from The MasterCard Foundation, is to increase the employability and productivity of Kenya’s low-income and unbanked population.
“This investment is about social transformation and the creation of new economic opportunities for people living in poverty. Our partnership will empower Kenyan women and young people by expanding access to secondary education and building the financial capability of microentrepreneurs.” says Reeta Roy, president and CEO of The MasterCard Foundation.
Equity Group Foundation will provide financial education to low-income and unbanked women and young people in Kenya over the next three years. Of these beneficiaries, 7,500 high-potential entrepreneurs will receive additional one-on-one mentoring and business training to develop their enterprises. In order to enhance their financial capacity, women and young people in the programme will be provided access to savings and other services through Equity Bank.
“In order to become economically productive, people living in poverty require access to knowledge, supportive networks and financial services. This partnership delivers these critical tools and empowers people to change their own lives. Lessons from this programme will influence our bank and others to mobilize social change,” said Dr. James Mwangi, CEO of Equity Bank and Chairman of Equity Group Foundation. Dr. Mwangi also chairs the delivery board of Vision 2030 -- Kenya’s strategy to become a middle-income country by 2030.
Equity Bank will also make available up to US$200 million in credit to the women and youth trained through this programme. In addition, the Government of Kenya has set up a KES 3 billion (approximately US$40 million) fund for financial institutions to engage in lending to youth, expediting access to credit for this critical demographic.
The commitment addresses a continuum of challenges – low secondary school completion, limited access to financial services for low-income women and youth, and high unemployment rates among youth. Despite the highly successful Free Primary Education Policy instituted by the Government of Kenya, only four percent of students who complete 8th grade make it to university. Many of these individuals are counted among the 80 percent of Kenyans who lack access to financial services, 50 percent who live on less than US$2 a day and 40 percent who are unemployed. The partnership will provide comprehensive scholarships and leadership training to top-performing students who are economically vulnerable to enable their completion of secondary school. Recipients are selected by community leaders and funds are administered by Equity Bank’s national network.
Dr. James Mwangi has served as a member of the Clinton Global Initiative since 2007.
The MasterCard Foundation’s mission is to fuel innovative solutions to global poverty. Its goal is to help people living in poverty realize their economic potential. The Foundation partners with leading organizations in two programme areas, microfinance and youth learning, to explore, test and scale solutions that make a meaningful and measurable impact on the world’s poor. It is an independent, private foundation established through the generosity of MasterCard Worldwide at the time of the company’s initial public offering.
Equity Group Foundation was established by Equity Bank, one of the top five banks in Kenya and the largest microfinance provider in East and Central Africa, to create the financial and operational infrastructure for social programmes aimed at low-income populations. Its goal is to transform the socioeconomic status of people in Africa.
Building on President Clinton's lifetime in public service, the Clinton Global Initiative (CGI) reflects his belief that governments need collaboration from the private sector, non-governmental organizations, and other global leaders to effectively confront the world’s most pressing problems. After attending thousands of meetings during his career in which urgent needs were discussed but no action was taken to solve them, President Clinton saw a need to establish a new kind of meeting with an emphasis on results. In 2005, President Clinton established CGI to turn ideas into action and to help our world move beyond the current state of globalization to a more integrated global community of shared benefits, responsibilities, and values. By gathering world leaders from a variety of backgrounds, CGI creates a unique opportunity to channel the capacities of individuals and organizations to realize change.