On January 11, City Mart Holding (CMHL) and International Finance Corporation (IFC) held official signing ceremony at Novotel Yangon to announce the provision of $25 million loan by IFC to Myanmar’s largest retail group, CMHL to support its expansion plans, boost the country’s retail sector, and create much-needed jobs along the supply chain. IFC’s funding will help CMHL construct about 20 more supermarkets and hypermarkets across the country over the next 3 years. Founded in 1996, with a total of over 150 different retail outlets so far, the expansion will also enable the company to integrate more farmers, micro, small and medium enterprises, and other suppliers into its supply chain and distribution networks.
CMHL expects to increase its purchases from domestic suppliers sixfold, reaching around $150 million by 2021, and create nearly 4,000 new jobs – half of which will be for women.
Win Win Tint, Managing Director of CMHL said “IFC’s investment is a sign of confidence in our business plan as well as in Myanmar’s retail sector potential. In addition to funding, IFC’s expertise and advice on food safety, good social and environmental practices and corporate governance will also help us take the company to the next level.” Myanmar’s $12-billion retail sector is currently predominantly informal, with formal retailers holding less than 10 percent of the market. However, economic growth and the opening up of the market after years of isolation have boosted demand for consumer goods.
“IFC supports the development of a modern retail sector in developing countries as it helps spur growth and job creation, develop supply chain and logistics infrastructure, and support smaller businesses,” said Vivek Pathak, IFC’s Regional Director for East Asia and Pacific. “With our global expertise and industry knowledge, we will be delighted to work with CMHL to improve efficiency and standards to become a model retailer in Myanmar.”
IFC is supporting reforms and investments in Myanmar to strengthen the private sector and create jobs to reduce poverty and boost shared prosperity. IFC is working with the government and the private sector to improve the country’s investment climate, access to finance, and infrastructure, with an initial focus on the power and telecommunications sectors.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In Financial Year 15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity.
About CMHL
CMHL started in 1996 as a supermarket outlet at Aung San Stadium in Yangon, Myanmar. Today, it is the market leader in multiple retail formats in Myanmar and an icon in the country’s retail industry. Among its leading brands, CMHL operates City Mart supermarkets, Ocean hypermarkets, Seasons cafés & bakeries, City Care health & beauty stores and City Express convenience stores. CMHL seeks to serve more of Myanmar’s population through outlet expansion and the introduction of new retail concepts.
