The International Finance Corporation is focusing on investing in banking and infrastructure in Myanmar, Sergio Pimenta, IFC director for East Asia and the Pacific said at the Myanmar 2013 Investment Summit in Hong Kong on May 15.
“These sectors are fundamental in allocating capital and providing
the basis of broad-based economic development,” Mr Pimenta said, adding
that the private-sector investment arm of the World Bank is also open to
investing in other sectors if they can generate “a very strong
development dividend”.
“On one hand, we really see the need in
some sectors. We want to focus on power and finance. On the other hand,
we also want to support the companies that we think we can work with and
have the right standards. So, if the company has the right standards
and might not be in the core sectors, we will be there to support,” he
said.
The IFC has already conducted a legal review and assessment
of regulatory issues in the private sector and invested in
Cambodia-based Acleda Bank’s microfinance operation here. Mr Pimenta
said the IFC is also in “advanced stages of discussion” on finance,
infrastructure and manufacturing projects.
It is also working
with the governments of Myanmar and Singapore to establish a credit
bureau. The rate of “outstanding credit to GDP is less than 5 percent”,
he said, adding that this figure clearly shows a lack of access to
finance.
Domestic banks will also need significant support
developing risk-management systems and expanding to meet the needs of a
swiftly growing economy. “Only a few banks are adequately prepared to
manage such rapid growth ... So we will need to support banks as much as
we can and watch how the growth of credit is handled,” Mr Pimenta said.
The
IFC is also aiming to use its investments in infrastructure to improve
working conditions in collaboration with the International Labour
Organisation, a UN agency. “This is one of the sectors that we are very
keen on supporting because it is particularly focused on labour. So
there is an opportunity to do the right thing from the beginning – set
up the right plan, safety, labour condition and then develop the
projects,” Mr Pimenta said.
The IFC also has its eye on the
telecoms sector because its weakness is restraining economic growth. “We
have publicly announced that we will be supporting the companies that
win the bidding process,” he said, referring to the companies vying for
two mobile network licenses. “As a developing institution, we don’t team
up with one particular bidder, but we are open to provide funding to
the winner as long as the winner has standards in governance,
sustainability and commercial operation,” he added.
“Less than 6
percent of the population has access to a telephone in Myanmar. As we
have seen in less developed countries in Africa when we increase access
to telecoms, the economy follows and provides access to markets and
development of mobile banking. We can help in the access to finance,” he
said.
Companies investing in job-creating sectors like
agribusiness, manufacturing, tourism and natural resource development
could also receive IFC support.
Mr Pimenta is upbeat on Myanmar’s
potential to attract investment. “Every time I go there I get that
feeling stronger and stronger,” he said.
source: The Myanmar Times
No comments:
Post a Comment