| Overview : UNDP in Myanmar initiated a microfinance project in 1997 during the second phase of its Human Development Initiative (HDI) programme. It was one of a few projects formally allowed to provide micro-lending and savings services in Myanmar before the enactment of the Microfinance Law in November 2012.
The Microfinance project activities were initially implemented by three international NGOs, namely Grameen Trust (Bangladesh) in the Delta region, GRET (France in Shan State) and PACT (USA) in the Dry zone. From the beginning of 2006, PACT became the most important implementing partner for all regions of the Microfinance project under the HDI. Currently, it employs around 1500 local staff in 25 townships across the country to run the operations. In 2011 the project expanded its activities with implementing partners in 5 additional townships - GRET for 4 townships in Chin State and Save the Children for Kanma in the Dry zone, thereby expanding the total coverage of the project to 30 townships. The current contract of UNDP with PACT will end on 31 December 2012.
Building upon UNDP’s experience with the provision of retail microfinance support to clients across many regions of the country, Microfinance Unit will provide on-going support on national efforts to develop a more inclusive and accessible rural financial sector to catalyse local economic development.
Three types of interventions are foreseen: (a) a national diagnostic of inclusive financial services undertaken by UNCDF; (b) expand supply of inclusive financial service through leading regional practitioners of microfinance – this will be implemented by UNCDF; (c) transition of UNDP’s current retail microfinance portfolio in support of a competitive and effective microfinance sector during 2013-2015 under UNDP new country programme action plans. |
