The International Finance Corp is to provide a $25 million loan to Myanmar’s largest retail group, City Mart Holding Company Limited (CMHL), to support its expansion plans.
The World Bank’s private financing arm said its funding will help CMHL construct about 20 more supermarkets and hypermarkets across the country over the next three years.
Founded in 1996, with a total of over 150 different retail outlets so far, the expansion is expected to enable the company to integrate more farmers, micro, small and medium enterprises, and other suppliers into its supply chain and distribution networks.
CMHL said it expects to increase its purchases from domestic suppliers six-fold, 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 Daw 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.”
Myanmar’s $12-billion retail sector is currently predominantly informal, with formal retailers holding less than 10 percent 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 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.”
IFC is currently working with the government and the private sector to improve Myanmar’s investment climate, access to finance, and infrastructure, with an initial focus on the power and telecommunications sectors.
From:Myanmar Business Today