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Media »Agriculture and inclusive business represent a fertile ground for investment

September 12, 2019

 

Nay Pyi Taw, Myanmar: The UK aid-funded DaNa Facility participated in the Euromoney Myanmar Global Investment Forum in Nay Pyi Taw from 10 -11 September. The forum was attended by over 1,000 investors from Myanmar and abroad. During the event, which aimed at attracting foreign and domestic investment, the DaNa team facilitated two roundtable discussions; one on inclusive and responsible business and one on agribusiness finance.

 

Myanmar companies are becoming increasingly interested in the benefits of inclusive and responsible business practices. This momentum is being driven by a number of key initiatives, such as the Inclusive Business and Impact Investing Steering Group, the Myanmar Centre for Responsible Business, and the Myanmar Institute of Directors.

 

“These exciting developments are creating,” said Aung Kyaw Phyo, Inclusive and Responsible Business Lead at the DaNa Facility.

 

The panel on inclusive and responsible businesses highlighted two specific challenges that companies face; firstly, the need to raise awareness and clarify understanding of basic terms and the ecosystem; and second, the need to develop platforms that support inclusive businesses to obtain financing.

 

The agribusiness sector presents a wide range of investment opportunities in Myanmar across multiple value chains. As the banking system develops, the financing needs of farmers and agribusiness are becoming increasingly apparent. While a number of Myanmar’s banks and microfinance institutions have recognized this as an opportunity, they remain unable to meet the needs of the sector. Regulations are partly to blame, but the financial sector lacks bankers skilled in the analysis of agricultural value chains and agricultural risks.

 

The agribusiness panel recognized the tremendous business opportunities in Myanmar’s agriculture sector, while concluding that there has traditionally been an overemphasis on the credit needs of the sector.

 

“Rapidly modernizing value chains are creating strong demand for new plant and equipment, which should be matched by risk capital.  There is a serious challenge matching these small to medium sized investment needs with suitable investors,” said Tom Moyes, Senior Access to Finance Advisor at the DaNa Facility.

 

DaNa plans to scale-up its support for inclusive and responsible business with interventions that include an additional round of impact investing grants and technical assistance to support inclusive and responsible private sector development in the agriculture sector. DaNa is also building on its experience with agricultural finance to develop a multi-faceted approach to increase access to finance for agribusinesses and farmer associations in Myanmar.

 

 

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Notes to editors:

 

For more information please contact the DaNa Facility communications team at: +95 9782500752 or through email: danapress@danafacility.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 visit: www.danafacility.com. Follow the DaNa Facility on Twitter | Facebook.