International Business Machines Corp. is working with the relief group Care International to provide technology to support microfinance institutions in Africa.
IBM is expected to announce today that it plans to build an Africa Financial Grid, which would function as a shared infrastructure for the institutions to process payments and perform other banking functions. The Armonk, N.Y., company will design and manage the grid's technology, and Care will provide local infrastructure and resources.
"Microfinance is crucial for sparking economic development in emerging markets," Mark Harris, the general manager for IBM South Africa, said in a press release. "Access to even the smallest of loans can make a huge difference in helping entrepreneurs."
Steve Hollingworth, the chief operating officer for Care, said in the release that his group, which is based in Geneva and has worked in African communities for the past 50 years, has found that "one of the most effective ways to address poverty is to promote access to financial services."
