LIFT is allocating a further $3.2 million to help smallholder farmers and rural landless people restart their livelihoods in the wake of the summer floods. Activities mainly based on debt relief and new finance will provide much-needed recovery assistance to around 72,000 people.
The new funds complement LIFT’s earlier contribution of $1 million, allocated in August, which provided over 200,000 flood victims with a mixture of debt relief, inputs to secure a monsoon paddy crop, and cash for work to re-instate damaged cropping land.
LIFT aims is to get key livelihood activities restarted as soon as possible, and to minimise the indebtedness caused by the floods.
The new funding comes from Switzerland, which is one of LIFT’s fourteen donors. LIFT pools its funds for aid effectiveness.
With this money, LIFT partners working in areas that were hard hit by the floods can provide immediate assistance to farmers ahead of the coming planting season. The four partners are:
1. Chin MFI: This local microfinance institution has 2,280 clients in Chin State whose livelihoods have been severely affected by flooding and landslides. LIFT will support them to write off the outstanding loans and provide new loans for 230 of the most severely affected clients. A further 2,050 clients will receive 50,000 MMK in cash assistance through each client’s MFI savings account, in the townships of Falam, Tedim, Hakah, Thantlang, and Tonzang.
2. Vision Fund (World Vision’s MFI): Many of their clients in Pathein Township in the Delta have been severely affected by flooding. LIFT will support them to write off outstanding loans and provide new loans for 1,950 clients.
3. Proximity Finance: LIFT will support 4,500 flood-affected farmers to access crop loans for an early winter crop of green gram in Hinthada and Zalun Townships in Ayeyarwady Region; Kawa, Thanatpin, Waw Townships in Bago; and Pwintphyu Township in Magway.
4. PACT (PGMF): LIFT will support 7,700 flood-affected farmers to access crop loans for an early winter crop of green gram and /or black gram in Hinthada, Zalun, Danaphyu Townships in Ayeyawady; and Pwintphyu Township in Magway.
These activities will provide much-needed recovery assistance to 16,430 flood-affected households at a total cost to LIFT of $3,150,000.
The activities will also strengthen the resilience of LIFT microfinance providers working in flood affected areas, which is key to the future resilience of rural households.
LIFT thanks its donors for their decisive action and on-going generosity.
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LIFT's donors are Australia, Denmark, the European Union, France, Ireland, Italy, Luxembourg, the Netherlands, New Zealand, Sweden, Switzerland, the United Kingdom and the United States of America. From the private sector, the Mitsubishi Corporation is a donor. Funds are pooled for better aid effectiveness. LIFT is managed by UNOPS, who administer the funds and provide oversight and monitoring.
