Proximity Finance further Invests 14 million dollars to help small-scale farmers
It is reported that Proximity Finance, which is the first farmer-centered financial institution in Myanmar, has signed a US$ 14 million collaboration agreement for equal profits with Finnfund, Nordic Microfinance Initiative (NMI) and Proparco.
Proximity Finance was established in 2010 as a microfinance business by Proximity Designs, one of the largest agricultural service platforms in Myanmar providing agricultural education and loans.
This collaboration agreement will be submitted to the Financial Regulatory Department (FRD) for approval to operate. After earning approval, Proximity Finance will be able to provide a loan of 1,500,000 to triple the number of households than the current 130,000 over the next four years. The commitment in this agreement will contribute to the increase in the loan amount and the expansion of loan types, as well as the funding of capital for small-scale farmers who are willing to make entrepreneurial investments. 
Photo Source https://www.proparco.fr/en
Farmers taking out loans from Proximity Finance can repay the loan after the crops are reaped and sold while most microfinance firms demand monthly repayment. “The financial situation of farmers has many challenges depending on the planting season. That’s why we are providing loan services developing farmer-focused loan model to meet farmers’ needs,” said Hedvig Sundberg, Chief Executive Officer of Proximity Finance.
She added, “Collaborating with impact-focused investors can strengthen our hard work to improve the low-income lives and to increase income. This partnership milestone spotlights the fact that our investors are especially focusing on the development of a society with equality for Myanmar rural areas and locals, and that there is support from international.”
Thirty-nine percent of Myanmar’s rural population lives in poverty. Farmers represent a market needing a great deal of support and it is a great opportunity for investors who wish to fulfill their needs. 
Photo Source https://www.proparco.fr/en
“By focusing on small-scale farmers, Proximity Finance is serving the country’s rural financial sector which is mainly in need of money and aims to help to design the financial sector by serving the rural population of thirty million not receiving services. We are honored to support Proximity Finance which is working towards inclusive finance for everyone,” said Magali Roux, Proparco’s Director for the North and Southeast Asia Region.
“We are proud to have this opportunity to make financial support in the journey of the group which is working excellently in agriculture and providing services that meet the needs of Myanmar’s small-scale farmers who have been neglected for financial assistance,” said Arthur Sletteberg, Managing Director of Nordic Microfinance Initiative.
“As this kind of investment can benefit agricultural and women’s empowerment sectors to develop inclusive finance system, it will be able to lead and implement many sustainable development goals at the same time,” said Ulla Huotari, Investment Manager of Finnfund.
As sixty percent of the loan takers from Proximity Finance are women, this investment is applicable as 2X Challenge investment type of gender equality commitment. In addition, fifty percent of senior officer positions in the company including the CEO and Head of Finance are women, strongly proving that there is gender equality. It is learned that Proximity Finance aims to empower its women partners and borrowers through its business policies, programs, and financial services.
