Mastercard Foundation Commits 3.2 mln USD to Repurpose Enterprises

Addis Ababa,June 11/2020(ENA) Mastercard Foundation has granted 3.2 million US dollars to 11 Ethiopian enterprises through Production Repurposing Program.

The foundation committed the stated figure from the Mastercard Foundation COVID-19 Recovery and Resilience Program which was created specifically to assist institutions and communities in Africa to withstand and respond to the short-term impacts of this pandemic, while strengthening their resilience in the long-run, it was learned.

The six-month Rescuing Enterprises Through Production Repurposing Program will enable the 11 small and medium enterprises (SMEs) to continue running their businesses and avoid having to retrench their 1,060 employees, the majority being young women.

According to the press statement of the foundation, the contribution from the Mastercard Foundation will support the repurposing of factories and basic textile machines as well as renting unused equipment to manufacture protective equipment for health care workers and masks for the general public.

The SMEs in the consortium are Enzi Shoes, FIF Trading PLC, Gaber Textiles, Habte Garment, KABANA Leather, Kootekett Leather, Mafi, Meron Addis Abeba, Sadula Business PLC, The Look Interiors, and Yefikir.

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, the statement pointed out.

Mastercard Foundation Country Head Alemayehu Konde Koira said an economic downturn due to COVID-19, to which SMEs are especially vulnerable, hits developing economies at their heart. " 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 program will also include the onboarding of an eCommerce marketplace to enable the SMEs to sell their products online, which negates the impact of social distancing while increasing their and resilience in the long-term.