JICA SME financing in Myanmar

ASEAN Briefing, Dec. 1, 2020:Japan’s JICA Provides Loans to Support SMEs and Infrastructure in Myanmar

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SME financing

SMEs represent the backbone of Myanmar’s economy, comprising 99 percent of all businesses and between 50 to 95 percent of total employment.

The latest agreement will see JICA approve 15 billion yen (US$143 million) worth of loans as part of the JICA SME Two-Step Loan program. This program was established by JICA in 2015 with the aim of assisting SMEs in Myanmar.

Through the program, businesses can apply for a loan of up to 500 million kyat (US$381,000) to purchase machinery, build factories, or to make other capital investments. Under the terms of the agreement, 80 percent of the loan must be used for investments in fixed/capital assets and the remaining 20 percent for working capital.

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Financing infrastructure development

JICA will provide 27 billion yen (US$258 million) in financing to implement the East-West Economic Corridor Highway development project, specifically the Byago-Kyaikto highway. JICA is co-financing the project with the Asian Development Bank (ADB) and is valued at over US$450 million.

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The project will connect the Bago Region and Mon State, which lie along the East-West Economic Corridor (EWEC), an economic development program that links Myanmar to Thailand, Vietnam, and Laos. From Myanmar, it is then further connected to India through the India–Myanmar–Thailand Trilateral Highway.

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In full: https://www.aseanbriefing.com/news/japans-jica-provides-loans-to-support-smes-and-infrastructure-in-myanmar/