MICROCAPITAL BRIEF: IFC to Advise Government of Myanmar on Regulation; Small, Medium-sized Enterprises (SMEs); Financial Inclusion; Microfinance

The International Finance Corporation (IFC), a member of the US-based World Bank Group that aims to increase economic growth in developing countries, recently signed a memorandum of understanding (MOU) with the Ministry of Commerce of Myanmar.  Under the MOU, IFC will advise the country on methods to “ease doing business for small and medium-sized enterprises (SMEs) in the country”[1]. With the support of the governments of Australia, Japan and the United Kingdom, IFC will cooperate with Myanmar’s Trade and Business Task Force, a private-sector group that advises government officials, to streamline regulation on establishing SMEs, accessing credit and enforcing contracts. IFC will also provide investment in the financial sector of the country to improve access to funding for SMEs and to increase financial inclusion through microfinance.

U Toe Aung Myint, the Permanent Secretary of the Ministry of Commerce of Myanmar, said that “the Ministry of Commerce is pleased to sign the memorandum of understanding with IFC to support our efforts to promote trade, business and investment”[1].

As of June 2015, IFC had 184 member countries and total assets of USD 87.5 billion, net annual income of USD 445 million and return on assets of 0.5 percent. IFC has sought to foster sustainable economic growth in Myanmar by financing and mobilizing capital for private sector projects in the energy, tourism and telecommunications sectors. As of June 2015, IFC’s investment portfolio in Myanmar totalled approximately USD 400 million[2].

By Victor Mugo, Research Associate

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development financial institution and member of the World Bank Group, offers loans, equity investments, advisory, and risk mitigation services and technical assistance to private companies with the intention of alleviating poverty and promoting open and competitive markets in developing countries. As of June 2015, IFC had 184 member countries that drive its policies and approve disbursements. Also as of the same date, the organization reported total assets of USD 87.5 billion, net annual income of USD 445 million and return on assets of 0.5 percent.

 

Sources and additional resources

 

[1] Finchannel: IFC supports Myanmar’s business regulatory reforms to improve investment climate

http://finchannel.com/index.php/business/item/45598-ifc-supports-myanmar-s-business-regulatory-reforms-to-improve-investment-climate

 

[2] Reuters: IFC Myanmar investment to rise to USD 1billion

http://mobile.reuters.com/article/idUSL3N0TW3RK2014121

 

[3] MicroCapital Universe Profile: International Finance Corporation (IFC)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29


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