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It’s been more than five weeks since our first email update in the wake of February’s military coup in Myanmar. Unfortunately, the situation has become progressively worse over the intervening time.
Many of you will have seen disturbing images of continuing escalation of violence and bloodshed in Myanmar in recent days. A particular flashpoint was Armed Forces Day on 27 March. Originally a celebration of Burmese resistance against Japanese occupation in WW2, the Tatmadaw (Myanmar’s armed forces) used this year’s occasion to put on a show of force, with particularly brutal crackdown against peaceful demonstrations across the country. We are devastated to see not only the violent repression of the non-violent civil disobedience movement, but also the reversal of a decade of rapid economic progress, political opening and social transformation. We are in regular contact with our friends at the ZMF bank in Kalaymyo. They report that they remain safe for now, but very worried about the uncertainty and worsening political situation. Blockaded streets and the sound of gunfire are not uncommon, and the usually bustling streets are quiet. The ZMF offices continue to open when it is safe (although they have been closed for the past week or so with increasing unrest). Although repayments are being made by clients, repeat loans are not currently being disbursed. The result is a temporary hiatus in new lending as ZMF looks to safeguard its capital pool for maximum benefit once the political climate improves (the closure of commercial banks has also meant that we have been unable to send funds to ZMF since the 1 February coup). For those wondering what this means for funds contributed to ADC, we are confident that donations will continue have massive impact despite the current slowdown in loan circulation. As with disruptions caused by COVID-19 lockdowns across the past year, the ZMF staff are committed to supporting clients get their businesses back up and running. ZMF has been part of the local community now for almost fifteen years, and has operated under military rule before. Recent events mean that its work – providing affordable financial services to those who are economically marginalised and living in poverty – will be even more crucial in the months and years to come as the people Kalaymyo, like the rest of Myanmar, recover from the current unrest and adjust to whatever the future brings. We’ll send further updates as the situation develops, and hope to be able to share some exciting developments on the ADC front in the coming weeks. ADC Board In November 2020, Myanmar held its first general election since 2015. The National League for Democracy (NLD), led by Aung San Suu Kyi won majority of seats in both of the country’s legislative houses.
Less than two months later, on 1 February 2021, the Tatmadaw (Myanmar Armed Forces) declared the results of the election to be illegitimate and launched a coup d'état that deposed Aung San Suu Kyi and President Win Myint. Around 400 elected members of parliament were placed under house arrest in the capital, Naypyidaw. A one-year state of emergency was declared, and internet and phone lines were cut off (these have been cut and restored numerous times since). Numerous large civil resistance efforts have taken place (and are continuing to take place) in Myanmar in opposition to the coup, including acts of civil disobedience, labour strikes, a military boycott campaign, a pot-banging movement, and mass public protests. Protests have become increasingly creative, such as large numbers of cars breaking down at the same time to block traffic. Although ZMF (our in-country partner) has itself intentionally steered clear of any political statement or involvement, we are aware that a number of staff and clients have been making their voices heard. The coup has drawn widespread external condemnation from other countries and international organisations. The New Zealand government has suspended diplomatic ties with Myanmar and announced that its NZAID programme is not to be delivered "in conjunction with or for the benefit of" the military. ADC does not take a formal position on the politics of the current crisis in Myanmar (both because our Charter requires us to be politically neutral and also so as not to put our project partner at risk). However, we have taken steps to ensure that we are operating consistently with the position taken by the NZ government. In particular, we have confirmed that ZMF has no direct relationship with the Tatmadaw (or any companies that are identified as owned the military) and that none of the business activities supported through ZMF’s microfinance have a military purpose. These recent developments have had a significant impact on ZMF. While the team is safe, the ZMF office has been mostly closed since the beginning of February, with no new loan disbursements and collection of repayments severely curtailed. Travel to visit clients has been limited and bank closures, internet blackouts, curfews and transport stoppages have only compounded the disruption. We are, once again, in awe of the resilience, resourcefulness and selflessness of the ZMF team as they navigate this crisis. However, the impact has been greatest on the local communities that ZMF serves. On top of the fear and uncertainty surrounding a return to military rule, there has been a huge disruption to small businesses and thus to incomes and livelihoods. Timing could scarcely be worse, coming on the back of a big COVID-19 lockdown in December. Prices for food, fuel and other basic commodities have spiked. As with previous economic shocks, we expect that women, ethnic minorities and the poor will be hit disproportionately hard. While we are devastated by these recent events, we are confident that ZMF will be able to continue its important work under whatever “new normal” emerges in the weeks and months to come. Grassroots financial services of the kind provided by ZMF will be needed more than ever following these disruptions (even more so if there are sanctions and divestment to come). We are continuing to work closely with the team in Kalaymyo to provide what support we can. We stand with our friends and the people of Myanmar. Kia kaha. ADC Board Dear Friends of ADC
Many of you may be wondering how our friends in Myanmar are getting on during the global COVID-19 pandemic. We have been working closely with the ZMF team over the last couple of months to navigate the situation. In the week of 23 March (while New Zealand was preparing to enter lockdown), ZMF made the decision to close its office to the public, suspending repayments for its 1,400 active loan clients and ceasing any new loan disbursements for the time being. To support its clients the decision was also made to not to charge interest on loans to business unable to continue, while repayments are suspended. At the time of writing, the ZMF office remains closed to clients while the extent of infection in the region is uncertain. In the meantime, ADC has helped ZMF compile some useful educational materials to be sent to clients with tips for staying safe and avoiding virus spread where possible. While shocks (environmental, political and economic) are nothing new in Myanmar, COVID-19 and its aftermath will bring unique challenges for those living in poverty. Like most countries, Myanmar's government has now imposed stringent restrictions on movement and gatherings. Close living conditions for most mean that physical distancing is difficult to enforce, making it difficult to protect the elderly and vulnerable. Limited supply of equipment mean that very little virus testing is available in the Kalaymyo area and rumours about prison-like conditions in a local quarantine centre mean that those with symptoms are reluctant to come forward in any event. Supply chains for food and other essentials have been disrupted and markets closed, resulting in supply shortages. The effects (direct and indirect) of COVID-19 in Myanmar will be felt most keenly by those living in poverty and, disproportionately, by poor women. Like elsewhere, the country is likely to experience a severe recession and the flow of foreign investment and tourism slows to a trickle. Wage subsidies and other fiscal stimulus measures are practically non-existent. Most people have no savings to fall back on. For those unable to operate their family business - tea shop owners, rickshaw transporters and market stallholders alike - these are hugely difficult times. The ZMF bank is well-placed to help bounce back once Kalaymyo opens up once again. Affordable, small-scale business capital will be precisely what many in the community need to get back on their feet and regain a regular income. A loan of as little as $200 can be all it takes to get a thriving small business up and running. Your ongoing support of ADC makes it possible for us to continue investing in these people, at a time when it is most needed. A special thank you to our regular donors, the lifeblood of ADC, without whose generosity our work with the ZMF bank would not be possible. Warm Regards Andrew Colgan & Geoff Cooper Co-founders  Did You Know...
It's New Year in Myanmar on the 17th April. Follow our blogs, posts and events. This year, we will give you more updates, stories and interesting facts about Myanmar. Don't miss out on little extras like great recipes, inside stories and more... Get our Myanmar Bulletin here  If you are on our website, you clearly love making a difference. One Percent Collective is a tiny crew of two people making a BIG difference. OPC encourages Kiwis to give 1% of their income to their vetted, partner charities - in late 2018, ADC Microfinance cut the mustard and joined their list of supported charities.
Since December, 2018 their regular givers have contributed nearly $7000 to ADC Microfinance. 100% of that money has been passed on to us, to grow the capital pool in Myanmar. Thanks, OPC!  The latest Generosity Journal Publication included an awe inspiring recount on how ADC was born. Have a read here.
We are excited to announce that with your support, ADC Microfinance has enabled a remarkable 2,112 microloans in Myanmar worth NZ$508,000 over the past year. Empowering thousands of people to lift themselves and their families out of poverty is something we think is worth celebrating! We couldn't have done it without your support and want to extend a sincere thank you to our donors and supporters. Your generosity and support makes the work of ADC possible and helps to grow our impact each year. This past year has been the most successful yet in Myanmar. We've hit a new milestone of enabling 8,037 loans since ADC's inception - that's NZ$1.7 million in loans since ADC began working with ZMF Bank in Myanmar. Once repaid, loan funds are available to be lent out again and again, making microfinance one of the most sustainable forms of development and maximising impact. For every dollar invested by ADC into the ZMF Bank, over $6.50 has been distributed in loans.  It has also been a big year for ADC in New Zealand. Our #GiveHerCredit network continues to grow, there has been great support through screenings of our On the Backs of Women film, and we have seen some fantastic peer-to-peer fundraising campaigns (such as supporters running marathons and racing up volcanoes to raise money for microfinance). The annual Gala Dinner and Quiz night continue to be hugely successful.
We can't wait to introduce you to some more ZMF Bank clients, and share some fun events coming up later in 2018. We would like to extend a heartfelt THANK YOU for supporting ADC in 2017 - for attending events, sharing our story with friends, donating to appeals, and getting behind our #BackAWoman campaign. A special thanks goes to our wonderful regular donors - your support really is the lifeblood of ADC that allows us to empower people to lift themselves and their families out of poverty. In 2017, our Myanmar partner ZMF Bank has continued to thrive and provide affordable credit to thousands of entrepreneurs in some of Myanmar's poorest communities. 2,027 loans were made, totalling $472,500. 86% of these loans were to women.  Our growth last year shows the power of microfinance in action. Each time a loan is repaid, the money can be loaned out again to a new deserving client with big business dreams.
Microfinance is a lifeline in communities like Kalaymyo, Myanmar (where ZMF Bank operates), because of otherwise prohibitive interest rates. Many people are forced to turn to loan sharks and pawn shops, where interest rates can exceed a frightening 200% per annum. This is a prohibitive cost to starting a sustainable small-scale business for most people. ADC's micro loans give skilled, enterprising communities another option. Here are some highlights from the Myanmar project in 2017:
Here in New Zealand, we celebrated some great highlights in 2017:
On the Backs of Women is the award-winning documentary about three enterprising women living in poverty in Myanmar. It won "Best NZ Short" at the 2016 DocEdge film festival. The film follows the lives of three clients of ADC’s project partner in Myanmar and demonstrates the power of microfinance to change lives. ADC has been running a campaign encouraging people to host viewings of the film with friends, family or colleagues. In 2017 there has been a larger focus on corporates and other groups having viewings with staff and other associates. The interest and inspiration inherent in the stories the film portrays has encouraged a lot of support, raising almost $20,000 for ADC so far, with lots more to come! As well as in people's homes, viewings have been held in high schools, churches, workplaces, the Ice House Auckland (New Zealand entrepreneurs supporting entrepreneurs in Myanmar), the Australian/Myanmar Chamber of Commerce at their Women in Business conference, iProspect, and more to come. We are immensely grateful for all the support we have received! We have also recently added the film to our website. It's free to watch, and we welcome donations of any size if you feel you got some value from it or would like to support more women lifting their families and communities. Every $200 raised through the #BackAWoman campaign enables us to support another woman in Myanmar and their dreams for a better future. If you’d like to watch the film, host a viewing or help us share these amazing stories in any way then visit www.backawoman.com to sign up, or contact our campaign coordinator James at [email protected]. Thanks again for all your continued support!  Our Myanmar project has gone from strength to strength this year, and we're excited to update you on what's been happening. Demand for loans from ZMF is strong, and the repayment rate remains high (over 90% repayments on time). As loans are repaid, the funds are then able to be loaned out again to new (and repeat!) clients. We've now enabled an incredible 6,271 loans since inception (September 2008), totalling $1.258 million.
We have 1,371 current loans in circulation, and 86% of these are to women. Thank you to everyone who has generously supported ADC to empower these people to access microfinance and build a better future for themselves. Last month there was more flooding in Kalaymyo and surrounding areas, where ZMF Bank (our project partner) operates. This involved a few precautionary evacuations and interruption to some client businesses, but not on anything like the scale of the devastating floods of 2015. Floodwaters have now receded, and ZMF is working closely with those clients who are affected to ensure they have the necessary support (including re-structuring loans where necessary). Many ADC supporters will no doubt be aware of the current conflict in Rakhine State in Myanmar, and consequent humanitarian crises. At this stage it looks unlikely that the unrest will directly affect the areas in which ZMF (ADC's Myanmar project partner) operates, as these are a few hundred kilometres to the north of Rakhine. However, our thoughts are with the thousands of innocent people affected by the ongoing violence and displacement. |
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