Manulife, a financial services provider, has pledged to invest $1 million in Kiva, a global nonprofit organization focused on providing financial support to microentrepreneurs in emerging markets, particularly in Cambodia, Indonesia, the Philippines, and Vietnam.
This commitment will enhance Kiva’s capacity to extend micro-financing loans to entrepreneurs not only in Asia but also across the globe.
“This commitment underscores the power of blended finance in helping us reach underserved individuals and communities in key emerging markets in Asia,” said Sarah Chapman, global chief sustainability officer, Manulife.
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The Manulife Match Fund will be utilized to provide capital to microentrepreneurs and underserved communities through Kiva’s crowdfunding platform. This approach streamlines the distribution of funds, creating opportunities for individuals and communities that lack traditional access to financial services. As loans are repaid, the funds return to Manulife’s Match Fund and are then allocated to new microentrepreneurs. This revolving fund, in collaboration with Kiva, plays a role in increasing the overall available funding and expediting the loan funding process for entrepreneurs.
Enhancing knowledge base
“Over two million people have invested $2 billion in real dreams and real opportunities, spanning more than 90 countries and 4.7 million borrowers. Through Kiva, Manulife funded several loans to entrepreneurs and borrowers in Asia,” said Vishal Ghotge, CEO, Kiva.
Kiva, established in 2005 as a crowdfunding pioneer, connects individual lenders with entrepreneurs and communities worldwide. The collaboration with Manulife will also facilitate lean data studies and the publication of valuable insights on borrower outcomes. This will further enhance the knowledge base for financial inclusion, ensuring that Kiva continues to assist lending partners in achieving the most favorable outcomes for their clients.
The partnership will be rolled out in three phases over the next three years. Local activation campaigns will target various markets, sectors, and causes that align with the interests of Manulife’s customers, employees, agents, and Kiva’s network of lenders.