TUESDAY, March 19, 2024
nationthailand

IFC backs Myanmar retail biz project

IFC backs Myanmar retail biz project

City Mart Holding Company Ltd, Myanmar’s largest retail group, has secured a US$25 million loan from the International Finance Corporation (IFC), a member of the World Bank Group, to finance the construction of about 20 more supermarkets and hypermarkets

The $25-million loan will be part of CMHL’s plan to invest a total of $46 million (Bt1.67 billion) in the expansion project.

Founded in 1996, CMHL now has more than 150 retail outlets. The expansion will enable the company to integrate more farmers, micro, small and medium-sized enterprises, and others into its supply-chain and distribution networks.

CMHL expects to increase its purchases from domestic suppliers sixfold, reaching around $150 million by 2021, and create nearly 4,000 new jobs – half of which will be for women.

"IFC’s investment is a sign of confidence in our business plan as well as in Myanmar’s retail-sector potential," said Win Win Tint, managing director of CMHL. "In addition to funding, IFC’s expertise and advice on food safety, good social and environmental practices and corporate governance will also help us take the company to the next level."

In the loan proposal completed last September, IFC noted that Myanmar’s $12-billion retail sector was predominantly informal, with formal retailers holding less than 10 per cent of the market. However, economic growth and the opening up of the market after years of isolation have boosted demand for consumer goods.

"IFC supports the development of a modern retail sector in developing countries as it helps spur growth and job creation, develop supply-chain and logistics infrastructure, and support smaller businesses," said Vivek Pathak, IFC’s regional director for East Asia and the Pacific.

"With our global expertise and industry knowledge, we will be delighted to work with CMHL to improve efficiency and standards to become a model retailer in Myanmar."

Supporting investments in Myanmar to strengthen the private sector and create jobs, IFC says it is working with the government and the private sector to improve the country’s investment climate, access to finance, and infrastructure, with an initial focus on the power and telecommunications sectors.

Aside from the financial assistance, IFC will extend business expertise to the company. It also looks to help raise and set standards for product quality and safety and help provide safer and healthier nutrition for Myanmar people.

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