Proparco is making an equity investment in Proximity Finance, alongside Nordic Microfinance Initiative (NMI) and Finnfund. This investment will allow the microfinance institution to continue its activity for the financial inclusion of small producers in Myanmar.
Client presentation
Proximity Finance is a Myanmar microfinance institution fully dedicated to financing farmers and was set up by the NGO Proximity Designs. The institution serves over 130,000 rural clients through its loans adapted to agricultural cycles.
Project description
Proparco has made an equity investment (in two tranches) in Proximity Finance, alongside NMI and Finnfund, with the aim of supporting the institution’s growth by tripling its portfolio by 2023. The objective is to ensure the sustainability of the activity of one of the only MFIs fully dedicated to rural areas in Myanmar, a country where 39% of the rural population lives below the poverty line.
This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy.
This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).
Project impact
On the economic front, Proparco’s investment should contribute to providing some 32,600 people with access to microfinance products. Proximity Finance offers products tailored to low-income rural clients and repayment terms adapted to crop cycles. The parent NGO offers borrowers training and awareness-raising activities in good agricultural practices.
On the social front, the project will contribute to creating or maintaining some 207,400 jobs in the country by 2023, including some 581 jobs in the MFI and 162,800 indirect jobs (e.g. clients of Proximity Finance). Women hold 50% of jobs in the MFI and 50% of management positions, meaning the operation qualifies for the 2X Challenge.
06/29/2020
Date of signature of the project
Sectors
Location
Financing tool
2 354 890
Euros
Amount of funding
USD 2,666,358 equity investment (1st tranche) / Total after second tranche (2021): USD 4,666,371
Proximity Finance Microfinance Company Limited
Head office country
PMM1004
CES
This information is given at the time of signature, without prejudice to any developments in the operation/project
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News
SignatureProparco, Finnfund and Nordic Microfinance Initiative support Proximity Finance in Myanmar
Published on 01 July 2020 -
on the same region
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