The Ministry of Planning, Finance and Industry (MoPFI) and the state-owned Myanma Agricultural Development Bank (MADB) signed agreements with a range of mobile financial service providers on 4 September.
The two state entities signed agreements with mobile providers including Ongo, KBZPay, OK$, Shwe Bank, CB Bank and MPT Money to disburse digital agricultural loans to farmers.
Ongo announced its collaboration with MoPFI and MADB on digital disbursement and collection of agricultural loans on 5 September.
According to Ongo’s announcement, Ongo will join forces with MADB to provide a simple solution for a swift and efficient disbursement and collection of agricultural loans to farmers through Ongo's mobile app.
Ongo agents will help farmers install the Ongo app onto their smartphones in order for them to be able to digitally receive the MADB agricultural loans.
Ongo is an app-based mobile money for B2B digital payment service, allowing users to cash-in, cash-out at thousands of Ongo agents using smartphones. Ongo has over 200 corporate clients and one million retail users, according to Ongo.
KBZPay also released an announcement on 9 September stating that farmers across nine states will be able to receive loans from MADB directly through their mobile wallet.
On 12 June, MPT Money also released a statement regarding the pilot project with MADB for the disbursement of loan from MADB’s PatheinGyi Township branch, without any fees or charges.
MADB is the largest financial institution in Myanmar supporting the agricultural sector. In June, the finance ministry approved MADB to provide around Ks600bn ($432m) in additional lending as part of COVID-19 relief for farmers nationwide.