Myanmar making further progress with elections

Myanmar has voted: according to the final results the Nobel Peace Prize winner Aung San Suu Kyi's "National League for Democracy" (NLD) party has obtained an absolute majority.The election marks another step forward in the country's process of democratisation. Following a 25-year interval, KfW Development Bank had already resumed its work in the country formerly known as Burma in 2013, acting on behalf of the German Federal Government. It opened an office in early 2014 and has since then supported the country in its economic and social development.

In addition to agriculture, small and medium-sized enterprises (SMEs) make up the backbone of the economy in Myanmar. They often require financial assistance to enable them to expand and create jobs. For this reason, KfW wants to support selected partner banks in Myanmar with the granting and processing of SME loans in the future. The first loan agreement should be signed before the end of the year. KfW is working closely with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to expand vocational schools, which are being modernised and fitted out with new equipment so that qualified applicants can be found for the new jobs.

New roads and paths enhance market opportunities

Despite the progress achieved in the handicraft and industrial sector, the vast majority of people in Myanmar still live in rural areas, and from arable farming and animal husbandry. However, the journey to the markets in the next town often takes a long time because of the poor state of the roads and is frequently not possible at all during the rainy season. This makes it very difficult for many farmers to sell their produce, while healthcare facilities or government offices are inaccessible. The childen often face a long and arduous journey to school. One of the key areas of KfW Development Bank's work therefore involves building and expanding a network of roads that are accessible all year round: roads are being resurfaced, fitted with drainage systems and secured from landslides, while bridges are being repaired or rebuilt. The purpose of these investments is to reduce journey times and transport costs, thus promoting regional development.

Moreover, people living in rural regions in particular do not have sufficient electricity, which they need primarily for lighting and to charge mobile telephones, which are meanwhile widespread even in remote parts of Asia. The Myanmar government has established the "National Electrification Plan" to improve electricity supplies for its citizens. The aim is to ensure the supply of electricity nationwide by 2030. KfW is participating in this programme alongside other development partners, such as the World Bank and the Asian Development Bank (ADB).

Old Krupp locomotives are being repaired and modernised

With its new projects, KfW continues with its long-standing tradition of cooperation with Myanmar. It is thus helping to repair old Krupp locomotives, many of which are still operational even after more than 30 years, in order to improve railway transportation. In this way, it is resuming an important element of the Financial Cooperation it had with Myanmar in the 20th century.

Between 1962 and 1988, German development finance for the country, which was known as Burma at that time, translated into a total of EUR 500 million. During this period, the country was one of the largest recipients of German support in Asia. The cooperation was discontinued in 1988 following the military coup. However, the process of democratisation in the country has laid the foundation for a new beginning.