Social Investment Landscape

Myanmar

Myanmar’s nascent social economy is poised for growth given growing investor interest, a diverse spectrum of incubators and accelerators and an increasingly enabling macro environment

Summary

Executive Summary

After decades of military dictatorship and isolation, Myanmar has emerged as one of the fastest growing economies in Asia with a GDP growth rate of 6.4% in 2017 underpinned by strong industrial performance, especially in garment manufacturing. The Rakhine crisis and stalling reforms have however led to an economic downturn in 2018 that is projected to extend into 2019. Myanmar’s development trajectory thus depends on how earnestly reforms will be implemented to liberalise the economy and create an enabling business environment.

Despite a lowering of poverty levels from 48% in 2005 to 32% in 2015, Myanmar continues to grapple with multiple social and environmental challenges. The country still trails behind its Southeast Asian neighbours significantly in terms of social development indicators. Life expectancy at birth is 67 years, the lowest in Southeast Asia; mean years of schooling is only 5 years, indicating huge gaps in basic health care and education services. Meanwhile, Myanmar is among the most vulnerable countries in the world to climate change, with regular extreme weather events such as cyclones, floods and droughts.

Myanmar’s social economy is still in its nascency but has shown signs of growth, albeit from a low base. While institutional philanthropy is practised on an ad hoc basis, the impact investing market is becoming increasingly vibrant with the presence of many private impact funds and development finance institutions (DFIs). There exists a spectrum of incubators and accelerators that support social ventures from start-up through to mature stages. Large local corporates are also moving towards more strategic social investment in alignment with community needs.

Myanmar’s Fact File

Myanmar’s 2018 Fact File

53 million

Population

USD 328.8 billion

GDP (PPP)

World Rank 51

6.8%

GDP Growth

USD 6,161

Per capita GDP (PPP)

World Rank 133

1 1 in 2016

World Giving Index Rank

91%giving money 51%volunteering time 53%helping a stranger

32%

Poverty

131/140

Global Competitiveness Index

171/190

Ease of Doing Business Rank

Ease of Doing Business Rank (2018) – 171/190
Source: ADB, Charities Aid Foundation, Credit Suisse, World Economic Forum, World Bank. Figures are accurate as of March 2019

Dashboard

SDG Dashboard

Despite rapid growth in recent years, Myanmar remains far from achieving any of the 17 Sustainable Development Goals (SDGs). The Myanmar Sustainable Development Plan 2018-2030 outlines a long-term vision and thematic plans and policies to provide a whole-of-government framework towards sustainable and inclusive economic development in line with the SDGs. The 5 strategic goals are:
  • Peace, national reconciliation, security and good governance;
  • Economic stability and strengthened macroeconomic management;
  • Job creation and private sector-led growth;
  • Human resources and social development for a 21st century society; and
  • Natural resources and the environment for the future generations.
The Plan also emphasises promoting and assisting small and medium enterprises (SMEs) as generators of employment and growth while prioritising infrastructure development including electricity, roads and ports. Myanmar aims to support the holistic development of agriculture and industry to ensure food security and increase exports.

Source: sdgindex.org (2018)

Note: The “traffic light” colour scheme (green,yellow, orange, red) illustrates how far a market is from achieving a particular goal

Government Initiatives

Government Initiatives to Address Development Gaps

Agriculture

SDG Goals

Gap

  • Agriculture contributes nearly 30% of the GDP but is characterised by low productivity and high volatility. Food insecurity is a major issue in upland areas and parts of the Delta.
  • Approximately 72% of the population lives in rural areas where 85% of poverty is concentrated.

Government Initiatives

  • The Agriculture Development Strategy and Investment Plan 2018/19 – 2022/23 emphasises collaborative relationships between farmers, businesses and the government to achieve key policy goals including: food and nutrition security, rural poverty reduction, increasing smallholder farmers’ incomes, agricultural trade competitiveness, and strengthening farmers’ rights.

Climate action

SDG Goals

Gap

  • Myanmar is highly vulnerable to climate change but ranked among the bottom 15 countries in terms of its coping capacity in the 2017 World Risk Report.
  • The country has been projected to experience a 0.8 – 2.7˚C increase in temperature, resulting in more droughts, floods and intense cyclones.

Government Initiatives

  • Key policy measures outlined in the Myanmar Climate Change Strategy and Action Plan 2016-2030 include:
    • Mobilising capital to finance climate-smart investments,
    • Increasing access to technology to enable climate-smart responses,
    • Building awareness and capacities in all levels of society, and
    • Forging multi-sectoral partnerships to implement climate-smart initiatives.

Education and employability

SDG Goals

Gap

  • 1 in 5 children aged 10-17 go to work instead of going to school.
  • The secondary school enrolment rate in 2017 was 56%, significantly lower than the East Asia and Pacific average of 78% (excluding high-income countries).

Government Initiatives

  • The National Education Strategic Plan 2016-2021 aims to expand access to and improve quality of pre-school services, basic education and alternative education; ensure the inclusion of 21st century skills in education curricula; and create equitable access to higher education.

Energy access

SDG Goals

Gap

  • 22 million people, or 41% of the population, do not have access to electricity, according to the International Energy Agency.

Government Initiatives

  • The Myanmar Energy Master Plan aims to achieve universal electricity access and an energy mix of 57% hydropower, 30% coal, 8% natural gas and 5% solar and wind by 2030.

Health care

SDG Goals

Gap

  • Life expectancy is the lowest among Southeast Asian countries at 67 years. Maternal and under-5 mortality rates are the second highest in the region.
  • More than one third of children under the age of 5 are stunted.

Government Initiatives

  • The National Health Plan 2017-2021 aims to extend access of the Basic Essential Package of Health Services to the entire population by 2020, strengthen the national health system and improve affordability of health care for the poor.

Poverty alleviation

SDG Goals

Gap

  • 32% of the population lived below the national poverty line as of 2015.
  • 39% of the rural population lived in poverty compared to 15% in urban cities.

Government Initiatives

  • The Myanmar Sustainable Development Plan 2018-2030 introduces measures to extend social protection services to children, youth, the poor and the elderly. Increasing agricultural productivity is the chief strategy to reduce rural poverty.

SME development

SDG Goals

Gap

  • SMEs account for 99% of all businesses in Myanmar but contribute to at most 53% of GDP.

Government Initiatives

  • The 2015 SME Development Law offers various incentives to registered SMEs in the areas of preferential loans, tax relief, human resources and training, linkages with large companies and technological transfer.

Social Economy

Myanmar’s nascent social economy is poised for growth given growing investor interest, a diverse spectrum of incubators and accelerators and an increasingly enabling macro environment

DEAL SHARE PLATFORM

Deal Share in Myanmar

Issara Institute aims to end labour exploitation, including forced labour and human trafficking, by transforming the systems and behaviours perpetuating labour exploitation, and empowering rights-holders in Southeast Asia.

Livelihood and Poverty Alleviation

Orbis International trains, mentors, and inspires eye care professionals around the world. We are currently partnering with governments and hospitals in Vietnam to provide eye care to the most needy.

Education, Health

We aim to ensure access to high quality, inclusive, and youth-centred life skills and financial literacy for all children and young people worldwide, especially to the most vulnerable.

Education, Employability, Financial Inclusion

The Asian University for Women (AUW) seeks to educate and empower women who will become skilled and innovative professionals, service-orientated leaders in their businesses and communities, and promoters of sustainable development in Asia.

Education, Gender

SOAPer School Program

By Soap Cycling Limited

Through fundraising, SOAP Cycling promoting hygiene and providing over 190 schools in Asia with the hygiene kits with soap to fight COVID-19. Roughly USD $390 is needed to support one school with enough soap for 1 year.

Education, Health, Water and Sanitation and Hygiene

Digital Literacy Project

By CCEducare Myanmar

This project is to train and skill up youth and women-led businesses for skilling up their digital knowledge and also increase their productivity skills.

Education, Employability

Ecozen is a technology company enabling the Farm-To-Fork value chain for perishables with 3 core offerings – Ecotron, Ecofrost & Eco-Connect, which work across the production, management, and marketing of perishable Agri commodities respectively. We are guided by a strong leadership team of professionals with expertise in Agri value-chain, sales, core engineering & IoT. We won multiple awards and accolades since its inception, such as the CII Innovation in Cold Chain Award 2017, FEDEX Small Business Grant 2018, Ashden Award 2018, and OGCCC Award 2019. Ecozen has a dedicated R&D team that has filed 10 patents to date and working on filing more in the future.

Agriculture, Climate Action and Environment, Energy

SolarHome is aiming to bring affordable, clean solar energy off-grid areas of Myanmar where low-income consumers can benefit from affordable, reliable, and sustainable energy solutions.

Climate Action and Environment, Financial Inclusion, Gender

Case Studies

Case Studies in Myanmar

Health

Preparing for the Next Health Crisis

Employability, Livelihood and Poverty Alleviation

Impact Investing

Gender

Supporting Women in Crisis and Conflict: 4 Lessons From Myanmar and Afghanistan

Climate Action and Environment

AVPN x Circulate Capital: Catalyzing Capital to Advance the Circular Economy and Fight Climate Change in Asia

Employability, Livelihood and Poverty Alleviation

Youth Unemployment & Livelihoods

Climate Action and Environment

Climate Finance

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Social Investment Landscape in Asia