📷 VisionFund International.
Author(s)
Financial inclusion is not only a pathway out of poverty, but also a critical tool for disaster risk reduction.
One year ago, a 7.7-magnitude earthquake devastated communities across the Mandalay and Sagaing regions of Myanmar. For VisionFund Myanmar (VFM), the disaster was deeply personal: offices were destroyed, two out of five branches were severely damaged, and 55 staff required urgent support to repair their homes. Yet amid this loss, an opportunity emerged – to rebuild not only what was lost, but to strengthen resilience for the future.
Within the first month, teams were back in the field, working closely with World Vision Myanmar to deliver emergency relief and support early recovery. While immediate assistance saves lives, experience shows that timely and inclusive financial services enable families to recover faster, reduce future risks, and restore dignity over time.
How financial inclusion supports safer recovery
One year on, this approach has reached 6,734 people in the hardest-hit communities. A combination of recovery lending, savings services, flexible credit, and financial literacy has helped households address immediate needs while strengthening long-term resilience.
For many families, the most urgent risk was unsafe shelter. Damaged homes left them exposed to aftershocks, monsoon rains, and secondary hazards such as illness and displacement. Affordable recovery loans, combined with concessional terms and grace periods, enabled faster repairs and rebuilding, reducing prolonged exposure to risk without forcing households into distress decisions such as selling assets.
Access to responsible, low-interest credit also helped prevent harmful coping strategies. Instead of relying on informal lenders, withdrawing children from school, or migrating into unsafe work, families were able to stabilize their situation and protect their livelihoods.
Rapid livelihood recovery was equally critical. Loans prioritised restarting agriculture and micro-enterprises, enabling many clients to resume income-generating activities within weeks rather than months. This reduced exposure to income loss, food insecurity, and debt cycles that often follow disasters.
Savings have also played a key role. Families have mobilised more than USD 346,000, rebuilding financial buffers that help them manage aftershocks, health emergencies, and seasonal pressures without resorting to emergency borrowing.
Financial and digital literacy training further strengthened these gains by improving budgeting, savings practices, and informed decision-making, while reducing risks related to fraud and financial exclusion.
📷 VisionFund International.
Women and children at the centre of resilience
Recovery efforts have focused on women and rural households, who often face disproportionate disaster risks. Nearly 90 per cent of clients are women, and 77 per cent live in rural areas. Strengthening women’s access to financial services has proven critical, as they often prioritise housing safety, food security, and children’s education.
The wider impact is significant. Recovery efforts have benefited more than 27,000 people, including over 7,500 children whose education and well-being have been protected. Communities are not only rebuilding, but are better prepared for future shocks.
A 100 per cent repayment rate highlights both the effectiveness of timely financial support and the resilience of affected communities. However, these figures reflect more than financial performance – they represent trust, determination, and the ability of households to recover when given appropriate tools.
Looking ahead: from recovery to risk reduction
Recovery has not been without challenges. Limited initial funding, access constraints in remote areas, and a complex operating environment required flexibility and sustained commitment from teams on the ground.
We are equally grateful for the unwavering support of our partners across World Vision Support Offices and VisionFund International. Their collaboration and trust enabled a coordinated, nationwide response, demonstrating what is possible when we work together toward a shared purpose.
One year after the earthquake, a key lesson is clear: financial inclusion is not only a pathway out of poverty, but also a critical tool for disaster risk reduction. Combining responsible credit, savings, and financial education helps households reduce exposure to hazards, avoid harmful coping strategies, and strengthen resilience over time.
Continued investment in inclusive financial systems will be essential to support vulnerable communities – not only to recover from disasters, but to better prepare for future risks. Strengthening livelihoods, supporting women’s economic empowerment, and building financial resilience are central to creating safer, more resilient communities.
Mai Mya Mya Win serves as the Chief Executive Officer of VisionFund Myanmar. She brings over 20 years of experience in finance, audit, and microfinance across Myanmar and the United Kingdom. She joined VisionFund Myanmar in 2013 as Chief Financial Officer and played a key role in the successful transformation of World Vision’s microfinance program into one of the first licensed microfinance institutions in the country. She served as CFO from 2013 to 2023 before stepping into her current role as CEO. Prior to joining VisionFund, she held senior internal audit roles with World Vision Myanmar and Pact Myanmar from 2009 to 2013, where she established audit functions and strengthened internal control systems.
Source: preventionweb.net
