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.
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.
On the economic front, Proparco’s investment should contribute to providing some 162,800 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 163,300 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 51% of jobs in the MFI and 50% of management positions, meaning the operation qualifies for the 2X Challenge.
This information is given at the time of signature, without prejudice to any developments in the operation/project