Microfinance Delta International Co., Ltd (MIFIDA) and Yoma Bank Signs a Funding Agreement to Deliver Inclusive Financial Services in Myanmar
MMK 3 billion funding agreement is aimed to support MIFIDA’s microfinance funding activities in Myanmar.
Yangon, Myanmar – December 13th, 2019 – Microfinance Delta International Co., Ltd (MIFIDA) and Yoma Bank signed a MMK 3 billion funding agreement today at Yoma Bank’s Head Office aiming to finance underprivileged households across Myanmar. This is the first partnership between two parties and the funding agreement is established in line with both parties’ mission to deliver inclusive financial services in Myanmar. With these new funding resources, MIFIDA will be able to expand its microfinance services for estimated 5,000 to 10,000 families, improving their micro-business opportunities.
MIFIDA is a microfinance company committed to serving underserved families in Myanmar to support the improvement of livelihoods. To achieve this, a variety of products are offered, from group loans, small-business improvement loans, seasonal agriculture loans, education loans, health loan, etc. MIFIDA also provides a voluntary saving product to its clients. Currently, MIFIDA has 57 branches in 13 States and Divisions, serving more than 130,000 active clients and 740 number of staffs. With the loan from the Yoma Bank, additional 5,000 to 10,000 borrowers from low income groups are expected to be benefitted.
Managing Director of MIFIDA, Mr. Myint Swe said, “Partnering with a Myanmar’s leading financial provider like Yoma Bank will strengthen MIFIDA’s commitment to serve affordable and accessible loans to underserved communities both in urban and rural areas of the country. Microfinancing sector is pivotal to empower the society and to grow the national economy. We are confident that the partnership will further escalate our outreach scales across the country and contribute to our mission of serving inclusive financial services to Myanmar people.”
With the vision to “Build a better Myanmar for its people”, Yoma Bank has always devoted itself to financial inclusion in Myanmar. Understanding the importance of microfinance sector in the country’s socio-economic development, Yoma Bank has significantly invested in the sector, which stands as a major loan portfolio of the Bank. Yoma Bank is also constantly looking for innovative ways to expand its reach by partnering with like-minded Microfinance Institutions (MFIs).
“With Yoma Banks’ vision to build a better Myanmar for its people, we are aiming to become the primary financial provider to both the banked and unbanked in Myanmar. We understand that the growth of microfinance sector is increasing and we are targeting to reach more micro-entrepreneurs by supporting the Myanmar’s MFI Community. Through this support, we believe it will leverage positive impact to the local community and increase the livelihoods,” said CEO of Yoma Bank, Mr. Dean Cleland.
In Myanmar, microfinance sector has seen an exponential growth recent years. Around 189 MFIs are operating in the country serving over 4 million families that only represent less than 10% of the country’s population. By supporting innovative funding solutions to MFIs, Yoma Bank is aiming to maximise inclusive formal financial reach to underserved Myanmar families and business from multi-sectors such as agriculture, retail, etc.
MIFIDA is a group company of Gojo & Company, an international financial institution based in Japan providing microfinance and financial services across Asia. In the funding round closed in August 2019, the Group received equity funding totaling USD 35 million from Japan International Cooperation Agency (JICA), a Japanese governmental agency under the Ministry of Foreign Affairs, together with the largest insurance companies and NBFIs in East Asia. MIFIDA’s operation begin in Myanmar in 2015 with the aim to enable all low-income people have the opportunities to achieve a life free from poverty with dignity and purpose. Currently, MIFIDA has 57 branches in 13 States and Divisions, serving more than 130,000 active clients.