July 22, 2020
Yangon, Myanmar: A new report has concluded that access to finance for Micro, Small, and Medium Enterprises (MSMEs) is vital as the economy strives to recover from the impacts of COVID-19. The report, commissioned by the Myanmar Government’s Working Committee to Address Coronavirus Disease (COVID-19) Economic Impact and prepared by the DaNa Facility in close partnership with the International Trade Centre and the United Nations Capital Development Fund, assesses the real sector impacts of COVID-19 and provides recommendations for an effective policy response.
The COVID-19 crisis has inflicted multiple shocks on the Myanmar economy that threaten to devastate the business community, particularly its developing and fragile MSMEs. The report underlines the importance of ensuring MSMEs remain open and operational during the crisis. As the backbone of the economy, MSMEs are set to play a key role in driving economic recovery.
The government’s Working Committee has been working to address the challenges of COVID-19, in particular through a 200 billion Kyat (146 million USD) Working Capital Fund for seriously affected businesses and MSMEs.
“This ground breaking assessment of the impacts of COVID-19 on business will improve implementation of the COVID-19 Economic Relief Plan, facilitate implementation of key measures to support access to finance and trade and investment activities, and produce a platform for building a post-COVID-19 recovery plan for Myanmar,” said Peter Brimble, Senior Technical Advisor of the DaNa Facility.
Myanmar economic growth in 2020 is projected to approach zero. Contact-intensive sectors – tourism, hospitality, and airlines – have been hit the hardest followed by trade-intensive industries, notably garments and other manufacturing. Unfortunately, the poor have been hurt disproportionately, especially those in informal urban services, while marginalized and vulnerable groups are at even greater risk than before.
The report stresses four linked objectives: protect, recover, revitalize, and prosper and aims to contribute to identifying policies that meet immediate needs while laying the foundations for faster and more resilient and sustainable growth once the crisis fades, especially in relation to micro, small, and medium enterprises (MSMEs). The report also highlights the important role of the private sector in driving the transition from relief to recovery during the COVID-19 crisis, as well as the critical importance of maintaining the pre-crisis reform momentum for private sector development. To download the full report, visit DaNa Facility website.
Notes to editors:
For more information please contact the DaNa Facility communications team at: +95 9782500752 or through email: email@example.com.
The DaNa Facility: The DaNa Facility is a UK aid-funded programme, established in May 2016 as one of six components of UK aid’s wider ‘Business for Shared Prosperity’ (BSP) programme. The DaNa Facility, implemented by DAI Europe and KPMG, supports inclusive economic growth and private sector development in Myanmar through responsible and sustainable business growth, investment and trade. For more information on the DaNa Facility please visit: www.danafacility.com. Follow the DaNa Facility on Twitter | Facebook | LinkedIn
You can find a Myanmar version of the press release here.