Mandalay Coffee Group and Yoma Bank Signed an Innovative Funding Agreement
1 Min Read
Funding Agreement to Support Farmers in the Specialty Coffee Value Chain
Yangon, Myanmar – March 19, 2018 – Mandalay Coffee Group and Yoma Bank signed a MMK 800 million funding agreement in support of farmers in the specialty coffee value chain on March 7. This funding will enable the farmers to increase the volume and quality of specialty coffee being produced.
U Kyaw Hlaing, Managing Director of Mandalay Coffee Group said, “We see this agreement as a step forward for our industry and our country, and MCG is happy to play a role in helping smallholder farmers to access financing and market share. The signing of this agreement reaffirms that we have many partners in this effort.” Mandalay Coffee Group was established in September 2014 by shareholders including coffee producers, processors, exporters, roasters, and retailers. Mandalay Coffee Group joined hands with USAID’s Value Chains for Rural Development project, implemented by Winrock International, to encourage specialty coffee production in Ywar Ngan, Shan State of Myanmar.
With the support from Rabobank Foundation, Yoma Bank disbursed the first round of the loan amount, MMK 160 million, in March 2017, helping over 2,500 specialty coffee-producing smallholder families. With this current funding agreement of MMK 800 million, Mandalay Coffee Group expects to increase its export volume more than 200 percent in 2018.
Yoma Bank is committed to improving financial inclusion in Myanmar. “We believe that by partnering with Mandalay Coffee Group, we will be able to help small coffee farmers access the formal financial system more effectively,” said the Advisor to the Chairman and CEO of Yoma Bank, Mr. Hal Bosher.
Ms. An Ha, Program Manager Asia from Rabobank Foundation, said the mission of Rabobank Foundation is to provide access to finance to smallholder farmer organizations in order for them to improve their farming business and livelihoods. “Providing financial solutions to smallholders is very challenging in Myanmar at the moment. We are pleased that Yoma Bank facilitated this transaction for the second time to provide access to finance to the coffee producing families. We were able to realize this together with the efforts of Winrock and Mandalay Coffee Group,” Ha continued.
With support from the U.S. Agency for International Development (USAID), in partnership with Winrock, Myanmar has brought its first specialty coffee to the world stage. “From coffee farmers to exporters, access to financing is one of the greatest challenges that Myanmar’s specialty coffee sector faces,” said USAID Mission Director Ms. Teresa McGhie. “This agreement between Yoma Bank, Rabobank Foundation, and Mandalay Coffee Group will provide financing throughout the value chain and increase Myanmar’s access to the international coffee market.”