Tag: International Finance Corporation

  • AI Adoption Hits 71% Among Emerging Market Venture Firms but Core Integration Lags

    AI Adoption Hits 71% Among Emerging Market Venture Firms but Core Integration Lags

    Artificial intelligence adoption among venture capital and private equity-backed firms jumped to 71 per cent this year in Bangkok, up from 39 per cent a year earlier.

    The headline surge conceals narrow implementation, with only 17 per cent of surveyed companies embedding artificial intelligence into their core business operations.

    Data released by the International Finance Corporation at the IMF-World Bank Annual Meetings shows that more than half of adopting businesses still restrict deployments to isolated operational functions. The survey sampled 1,600 private equity and venture capital firms to evaluate how early-stage and portfolio enterprises deploy automated tools. Improved productivity ranked as the primary driver, cited by 54 per cent of respondents, yet operational bottlenecks persist across developing markets.

    Skills Shortages and Local Integration Bottlenecks

    Human capital constraints remain the primary hurdle to enterprise rollouts across emerging regions. More than 40 per cent of non-adopters identified acute skills shortages as their primary barrier, while broader institutional capacity deficits continue to stall deployments outside basic software tools.

    Enterprise operators in Southeast Asia and South Asia frequently encounter tools designed for Western data sets and cost structures. Without local tuning, generic generative platforms fail to handle regional dialects, local commercial registries, and fragmented banking APIs. The practical value for regional businesses depends on engineering lightweight, localized models rather than purchasing expensive enterprise subscriptions that internal teams cannot maintain.

    Cross-Border Payments and Merchant Infrastructure

    Fintech operators are focusing on targeted agents to resolve transaction delays for small and medium-sized enterprises. Cross-border payments and remittance channels across developing corridors remain plagued by settlement delays and excessive processing fees.

    Adeola Adewede, founder and chief executive of fintech platform Kredete, stated that autonomous AI agents configured for local language context and cost structures can transact on behalf of regional merchants across borders, lowering operating costs and speeding liquidity cycles.

    Medical Imaging and Regulatory Clearance

    Healthcare deployment demonstrates a similar pattern of targeted edge utility versus administrative obstruction. In India, medical imaging platform CARPL has deployed portable X-ray units powered by laptop-based AI models to screen populations for tuberculosis and breast cancer.

    CARPL founder and chief executive Vidur Mahajan noted that the platform maintains an ecosystem of more than 300 imaging applications for hospitals. However, ambiguous medical software regulations across emerging markets delay rollouts, prompting industry calls for regulators to streamline domestic approvals for diagnostic algorithms already certified in developed economies.

    On-Device Intelligence and Hardware Integration

    Hardware providers argue that long-term productivity gains require local processing rather than continuous cloud connections. Running machine learning models directly on laptops, vehicles, and connected hardware eliminates latency and lowers connectivity costs for small businesses.

    Veerabhan Kheterpal, co-founder and chief executive of semiconductor IP licensing company Quadric, noted that building intelligence directly onto devices allows systems to generate customized software adjustments in real time, expanding operational capacity for small enterprise operators.

    Commercial focus now shifts to whether portfolio companies can convert functional experiments into revenue-generating workflows before early investment capital runs dry.

  • IFC to extend $21m debt to half a dozen MFIs in Myanmar

    IFC to extend $21m debt to half a dozen MFIs in Myanmar

    IFC will extend from $3 million to $6 million financing to each selected MFI as a kyat-denominated loan. The move will deepen access to finance to the bottom of the pyramid market.

    The move will also enable the microfinance industry to commercially operate in the country.

    The IFC loan is expected to enable disbursal of 112,500 to 127,500 loans to low income households in the country, improving the underserved segment’s access to finance and create jobs, according to the IFC disclosure.

    “Microfinance in Myanmar has grown up on a lot of donor funding. IFC is trying to help formalise the sector and provide sustainable local currency debt to MFIs to expand their loan portfolios,” said Julie Earne, Lead, Financial Institutions Group of IFC in Myanmar.

    IFC is working across the financial sector with banks, microfinance institutions and digital finance companies to ensure all segments of the market are served.

    IFC stated that there are about 250 microfinance institutions in Myanmar that are yet to commercially operate. The proposed loan facility will provide the scarce and much needed commercial funding to those institutions. It is also into providing advisory services to the candidates to build internal capacity.

    Some of IFC’s existing microfinance clients include Acleda, Fullerton, Proximity Designs, Pact Global Microfinance Fund (PGMF) and VisionFund Myanmar.

    “We are looking at our existing investment and advisory relationships (on microfinance), as well as other clients that we were not working with yet, to put together a diverse group of institutions,” said Earne.

    IFC is currently in the process of reviewing the MFIs for participation in the debt facility.

    Back in 2014, the IFC launched The Myanmar Microfinance Development Programme with the funding support from the Canada Department of Foreign Affairs, Trade and Development and funding from Livelihood and Food Security Trust Fund (LIFT). It expects to improve financial access for over 270,000 clients with an aggregate loan of over $70 million by 2017.

    “Our existing programme provides technical assistance focused on formalising microfinance institutions, building capacity in treasury management, human resources, risk management, product development, assisting key players in the market to mature as they look to grow and scale their operations,” said Earne.

    Building on this programme, IFC is supporting MFIs to borrow local currency Kyat funding.

    “Right now the most critical issues for microfinance in Myanmar is to help facilitate local currency financing to MFIs so that they can expand their portfolios. We need to also crowd in and enable local banks to lend to MFIs. Local banks have kyat liquidity and it is important to facilitate them to lend to MFIs,” said Earne.

    The Central Bank of Myanmar just issued a mobile financial service rules and telecom operators like Telenor are in talks with some MFIs to use their mobile financial service for microfinance lending.

    IFC is engaged in the MFI operations for Myanma Awba, an agri-based business in Myanmar, in an advisory role, giving corporate governance assessment and drafting and implementing policies and training. Myanma Awba received a finance facility of $10 million in February 2016.

    IFC has been active in debt and equity investment to Myanmar corporations. Some recent involvements include a $-million support for Myanmar Industrial Port enhancement, a $25-million financing to retail group City Mart and $40-million funding to Sembcorp and MMID Utilities Pte Ltd’s gas turbine project.

  • Myanmar City Mart secures IFC loan

    Myanmar City Mart secures IFC loan

    Supermarket group Myanmar City Mart Holding Company (CMHL), the nation’s largest private retail group, is borrowing $25 million to finance a nationwide expansion.

    With more than 150 retail outlets in Myanmar, the company plans to build 20 more supermarkets and hypermarkets over the next three years.

    It plans a sixfold increase in its purchases from domestic suppliers to reach around $150 million by 2021, and create nearly 4000 jobs, half of which will be for women, reports Deal Street Asia. CMHL’s financing is in the form of a loan from the International Finance Corporation (IFC), the private lending arm of the World Bank Group.

    IFC hopes that CMHL’s expansion will not only help create jobs, but also develop supply chain and logistics infrastructure as well as support smaller businesses. “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,” says IFC regional director Vivek Pathak.

    CMHL’s shareholders are Win Win Tint, the founder and MD, and her relatives.

    “IFC’s investment is a sign of confidence in our business plan as well as in Myanmar’s retail sector potential,” says Win Win Tint.

    “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 predominantly informal, with formal retailers holding less than 10 per cent of the market, according to the loan documents. It is the second such loan extended by the IFC to CMHL. In October, IFC had already extended a  $25 million loan for a $46 million retail expansion plan.

    IFC is supporting reforms and investments in Myanmar with the aim of strengthening the private sector, creating jobs for poverty reduction and boosting shared prosperity.