VisionFund, (previously World Vision Microfinance) will provide microfinance services while World Vision will be responsible for overall project management. Small business loans, loans for small scale agriculture technology, debt refinancing and the creating individual development accounts are the major microfinance services that will be provided to contracted Upland areas including: Myitkyina and Waingmaw in Kachin State, Lashio, Hsipaw, Kentung, Mongphyak, Tarchileik in Shan State, Loikaw and Demoso in Kayah State, and Pha An in Kayin State. The projects began in November of 2015 and are set to continue until the end of 2018.
The Uplands region is underserved by both formal and informal financial services. Only around 20 per cent of households have access to formal services, approximately 30 per cent have access to information services, and the majority (over 50 per cent) of the population are excluded from both formal and informal financial services
The LIFT Financial Inclusion grant is part of a wider World Vision livelihoods programme which aims to increase the income of rural households, increase the resilience of rural households and communities to shocks, stresses and adverse trends, as well as improving the nutrition of rural women, men and children. The partners will pay special attention to the encouragement of women in livelihood activities with over 80 per cent of clients anticipated to be women.
Andrew Kirkwood, LIFT’s Fund Director, commented, “Increased access to affordable credit and sustainable financial services will accelerate Myanmar’s rural economic transformation. We have allocated this grant since World Vision Myanmar has been active since 1998 and VisionFund Myanmar has well-established microfinance operations serving rural communities. There are significant synergies between the partners in our financial inclusion programme in terms of local knowledge and in bringing financial services to the rural poor.”
VisionFund Myanmar has grown its total portfolio to over US$8 million with nearly 60,000 active borrowers, 87 per cent of whom are women.
It is estimated that over 160,000 children have been positively impacted as a result of the small loans taken out by their parents to grow
businesses and supplement the family income.
Scott Brown, President and CEO of VisionFund International explains,“While Myanmar is experiencing significant changes, more than 32 percent of the population still live below the poverty line and the country suffers from a lack of capital to fund economic development. This generous grant will enable us to bring greater financial inclusion to some of the poorest areas to provide brighter futures for the present and future generations.”
For more information please visit www.visionfund.org/grants or email grants@visionfund.org
