In Myanmar, all the studies demonstrate an important gap between rural populations’ credit needs and the current supply. Because of this, in the absence of a “formal” credit supply, Burmese people borrow mainly from money lenders who charge extremely high levels of interest. 

In light of this and the success of the microfinance project it has been supporting in Chin State since 1995, GRET launched a new microfinance project in 2013 in the region known as the Dry Zone.

During the first phase of this project (which ended in late 2016), GRET laid the bases for a Microfinance Institution and offered loans intended to finance income-generating activities for rural populations in three townships (Monywa, Yinmabin and Budalin): more than 8,500 customers.

A second phase began in 2017, whose main objective was to create a Microfinance Institution (MFI) governed by local law that would take over this activity, and that of the Chin MFI. This second phase also saw the implementation of a specialised information system in the new institution, and its extension to new geographic zones.

At the end of 2016, the project had 8,500 customers benefitting from a group loan. All customers were living in rural areas and loans were used to finance agricultural/livestock activities and craft activities (such as weaving). The institution has a team of 35 staff who were recruited and trained by the project and broke even after 3 years of activity.