Myanmar

Myanmar (2)

Saturday, 16 January 2016 00:00

Microfinance

myanmar-microfinanceIn Myanmar, the financial inclusion is very low with around 70% of people not having access to formal financial products or services. Among the 30% financially included, there is a gender gap that ranges between 4% and 12%. One of the greatest problems of Myanmar is that the economy is highly reliant on the informal financial sector populated by moneylenders, pawnshops and hundis. The informal financial sector has been estimated to be USD 3.9 billion, which is equivalent to 80% of the of the total loan amount disbursed by formal banks of the country (UNCDF, 2015).

We wish to address above the problems with our microfinance programme. We started our operations in Myanmar to bring access to credit to people living in poverty, especially women, in rural areas. We select branch offices based on the idea to integrate other development interventions e.g. education, health and agriculture, with microfinance leading the way. The information gathered from microfinance activities are being recorded systematically to identify needs of the community for better design and delivery of services required in other sectors.

We now operate the Small Enterprise Programme, which provide loans ranging from USD 590 to USD 7,300 and are given to individuals as working capital for their businesses. It is a monthly instalment payment system and a client needs to repay at a branch office or through mobile money. We are committed to provide collateral-free loans with quick processing time, minimum fees, without any hidden cost and the best possible support for small entrepreneurs.

Our projects:

ProgrammeProjectDonorStarting DateDuration
Microfinance Enabling the sustainable economic growth of people with disability, especially women, through innovative microfinance and agricultural approaches DaNa Facility October 2017 2 years
Microfinance Research and Product Development (Financial Diaries) What women want UNCDF 2017 17 months


Highlights:

  • Provided collateral free individual loans to 69 small entrepreneurs
  • Provided USD 9,700 as death benefit to the families of 131 women borrowers
  • Supported 7 small entrepreneurs in Myanmar to receive hands-on training in USA as part of the partnership between BRAC
  • Myanmar and University of Oklahoma, USA.
  • Expanded microfinance programme in two new regions (Sagaing and Nay Pyi Taw)
Saturday, 16 January 2016 00:00

Overview

In 2014, BRAC Myanmar Microfinance Company received the license to operate microfinance in Myanmar. The company has been registered with the Ministry of Finance as a for-profit organization while BRAC Myanmar will cover most of the INGO activities including health, agriculture and education. BRAC not only offers a pro-rural and pro-poor service, but also brings in a holistic development model, delivered through its microfinance plus approach, integrated with other development interventions such as education, health and agriculture.


As of October 2015, BRAC has a total of 21 field offices working towards financial access of poor women in the country. This figure is expected to rise to 30 by the end of the year, and further increases to 60 and 90 are expected by the end of 2016 and 2017. Over 11,000 loans have been made to date, a figure expected to rise to 100,000 by the end of 2018. Such loans are specifically targeted to poor women, with an average size of $196, and split between rural and urban areas. BRAC currently employs 184 local staff who are being supervised by 20 expatriate staff.

In addition to its country office in Yangon, BRAC has a regional office in Bago and 15 branch offices in rural Yangon and Bago. The aim of BRAC Myanmar is to operate in 60 townships by the end of 2016.

 BRAC Myanmar Fact Sheet Download [PDF - 609 KB]