Grameen Trust of Bangladesh, a micro-credit financial services firm, and Alibaba Group, a China-based e-commerce company, have partnered to create the Grameen China initiative, to provide micro-credit financial services to China’s poorest residents to create income generating opportunities.
Reportedly, the Grameen China’s initial focus will be in Sichuan and plans to grow to other provinces with the help of additional partners. In support of this effort, Grameen China will be built and managed by Grameen Trust using the micro finance model pioneered by Grameen Bank and employing Chinese staffers from each region.
Alibaba Group has said that as a Grameen’s lead partner in this effort, it is providing initial funding for the creation of Grameen China through a charitable donation of $5 million. In addition, Alibaba Group will advise in areas like technology-based support to help potential recipients access the program and eventually build their businesses online. The group has added that it will also help Grameen Trust attract potential supporting partners and other donors to the effort. Moreover, Grameen China expects to begin making micro-credit loans available as soon as it receives regulatory approval from the authorities.
According to the group, initially, it will establish two Grameen Microcredit companies in Sichuan and Inner Mongolia provinces with multiple branches in each area. At the initial level of funding, Grameen expects to be able to make loans to more than 8,000 people in Sichuan and Inner Mongolia, with the average loan starting at $400 per person, and growing to $4,000 within the first five years of operation. Grameen expects that its initially planned microcredit company’s four branches will impact the lives of more than 24,000 people in the Sichuan province alone.
Muhammad Yunus, founder of Grameen Bank and executive trustee of Grameen Trust, said: “We are pleased to join hands with Alibaba Group to create Grameen China and to spread the Grameen Bank approach to help the poorest people by giving them microcredit to alleviate their poverty through the creation of small businesses. Using information technology to help Grameen China grow will help our borrowers establish businesses to support themselves, and perhaps eventually even sell their products internationally which will literally change their lives. If we can make micro-credit available to potential entrepreneurs in China then that will make a big impact for the whole world.”
Jack Ma, founder, chairman and chief executive of Alibaba Group, said: “Micro-credit is the oxygen to make entrepreneurial dreams come alive. We are very pleased to join with Grameen Trust in this effort to create employment opportunities in these areas by helping tens of millions more small entrepreneurs create their businesses. We also welcome contribution from others and hope to build more partnerships in China.”
