Microcredit is booming in Myanmar. After the first regulations for the sector appeared in 2012, microfinance institutions (MFIs) have mushroomed in the country. Providing small loans before was limited to a couple of NGOs and the Myanmar Agricultural Development Bank, leaving a large part of the demand unmet. Out of Myanmar’s ca. 50 million population, 2.5 million working-age adults still cannot access formal financial services such as loans or saving facilities, according to the United Nations’ capital investment agency UNCDF.
A reality that stands in stark contrast with the skyscrapers and shopping centres of uptown Yangon, as lustrous as they come in Western Europe. After decades of military protectionist government, the country has gradually liberalised since 2010, when releasing Aung San Suu Kyi from house arrest and partially handing over power to a civilian government. Major infrastructure works and foreign investments have started. Now the IMF puts the country among the fastest growing economies in the world.