MICROCAPITAL BRIEF: Livelihoods and Food Security Trust Fund (LIFT) Donates $4.5m to World Vision Myanmar for Microfinance Lending, Savings

The Livelihoods and Food Security Trust Fund, a Myanmar-based multi-donor trust fund, recently has donated a three-year USD 4.5 million grant to three organizations affiliated with US-based NGO World Vision, to aid approximately 100,000 people in gaining improved access to financial services. World Vision Myanmar; World Vision Australia; and VisionFund Myanmar, a branch of international microfinance institution (MFI) VisionFund International, which is owned by World Vision, will use the grant to provide credit and savings products to farmers and off-farm entrepreneurs in the states Kachin, Shan, Kayah and Kayin, comprising a large part of Myanmar’s highlands [1].

“Increased access to affordable credit and sustainable financial services will accelerate Myanmar’s rural economic transformation. […]. 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,” said Andrew Kirkwood, LIFT’s Fund Director [1].

As of December 2014, LIFT awarded a total of USD 124 million, distributed as 93 grants [2]. Also as of December 2014, VisionFund Myanmar reported total assets of USD 8.9 million, return on assets (ROA) of 3.4 percent and return on equity (ROE) of 7.2 percent. As of September 2015, VisionFund Myanmar reported a loan portfolio of approximately USD 8 million, divided over 60,000 borrowers, of whom 87 percent were women [2]. As of 2015, VisionFund International has a loan portfolio of USD 474.3 million outstanding to approximately 1 million borrowers in 32 countries [1]. World Vision is a Christian relief, development and advocacy organization.

By Kevin van den Brink, Research Associate

About The Livelihood and Food Security Trust Fund (LIFT)

The Livelihood and Food Security Trust Fund (LIFT) is a multi-donor trust fund aiming to improve the lives and prospects of poor people in rural Myanmar. As of December 2014, LIFT awarded a total of USD 124 million distributed as 93 grants. Besides funding, LIFT provides research and technical services, and it also works with the government of Myanmar encourage “pro-poor” policies [1].

About VisionFund Myanmar

VisionFund Myanmar is a microfinance institution (MFI) that provides credit and savings services. VisionFund Myanmar is a subsidiary of VisionFund International, which handles microfinance activities in 32 countries for World Vision, a US-based Christian relief and development organization. As of December 2014, VisionFund Myanmar reported total assets of USD 8.9 million, return on assets (ROA) of 3.4 percent, return on equity (ROE) of 7.2 percent. As of September 2015, VisionFund Myanmar reported a loan portfolio of approximately USD 8 million, divided over 60,000 borrowers of which 87 percent were women [2]. It did not report its savings numbers.

About VisionFund International

VisionFund International, a US-based nonprofit organization, offers financial services to families living in poverty in the developing world through a network of microfinance institutions in 32 countries in Asia, Africa, Latin America and the Caribbean, the Middle East and Eastern Europe. Its services include small loans and business training and support. VisionFund is part of US-based World Vision, a Christian relief, development and advocacy organization. As of 2015, VisionFund has a loan portfolio of USD 474 million outstanding to approximately 1 million borrowers.

About World Vision International

World Vision is a US-based Christian humanitarian organization dedicated to working with children, families and their communities worldwide to reach their full potential by tackling the causes of poverty and injustice. World Vision serves poor people worldwide regardless of religion, race, ethnicity or gender. The organization operates microfinance institutions through its subsidiary VisionFund International. VisionFund International seeks to improve the lives of children in the developing world by offering small loans and other financial services to families living in poverty. World Vision raised USD 2.80 billion in cash and in-kind gifts during 2014 and as of 2015 serves approximately 100 countries.

[1] Information provided directly to MicroCapital by VisionFund International.

[2] Information provided directly to MicroCapital by World Vision International

[2] MixMarket, News, Auditors Report 2014 http://www.mixmarket.org/sites/default/files/vision_fund_myanmar_afs_14.pdf

MicroCapital Universe Profile: The Livelihood and Food Security Trust Fund (LIFT)

MicroCapital Universe Profile: VisionFund Myanmar

MicroCapital Universe Profile: VisionFund International

Our partner suggests this Australian lender.

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Share

Comments are closed.