Social Impact Investment in Myanmar: “Instead of paying interest, I have promised to contribute social benefits to my community”

 

 

Image: Small business owner Kyi Kyi Sein at a trade fair in Yangon, Myanmar, supported by Community Partners International. (Lwin Phyu Phyu Kyaw/CPI)

1742Social Impact Investment in Myanmar: “Instead of paying interest, I have promised to contribute social benefits to my community”

Kyi Kyi Sein makes food, home and beauty products from natural ingredients. She is building the business through Myanmar’s economic and political crisis. A social impact investment supported by Community Partners International (CPI) is helping her develop new lines. The social impact investment carries no interest. In place of interest payments, she has committed to a social benefit for her community.

How sweet potato becomes curry powder

At home in Yangon, Kyi Kyi Sein sits on the floor, peeling and slicing sweet potatoes. This is the first step in producing sweet potato curry powder. She sells it under her “Sure” brand.

Next, she cuts the pieces into thin slices with a mechanical slicer. Then she places them in a drying oven. Once dry, she transfers the sweet potato chips to a grinder and turns them into a fine powder. After adding her signature spices and natural flavors, she pours the powder into labeled packages ready for sale.

Products without MSG or harsh chemicals

“I was concerned about the chemical levels in products and their possible side effects,” Kyi Kyi Sein reveals. “For example, mosquito coils contain chemicals and metals and can be as harmful as smoking. So, my response is, what kind of natural, harmless products can we use to repel mosquitoes?”

Her approach is to make unique products that emphasize health, quality and consumer safety. “With my shampoo, for example, anyone can make a simple base formula, but I try to use other ingredients with health and beauty benefits, like rose and olive oil. I’m always thinking about how I can improve my products.”

Kyi Kyi Sein (right) and a family member peel and slice sweet potatoes at her home in Yangon, Myanmar. (Lwin Phyu Phyu Kyaw/CPI)

What the social impact investment paid for

In 2023, Kyi Kyi Sein received an interest-free social impact investment of 4 million kyats. That was about $1,160 at the time. CPI supported the investment, and she used it to expand her product lines. She put it into a range of curry powders free from monosodium glutamate (MSG). Myanmar’s commercial food industry uses the flavor enhancer widely.

“There are curry powders for sale in the market that falsely claim to be MSG-free,” Kyi Kyi Sein reveals. “I never use any artificial flavors or preservatives in my curry powders. That is my strength. I also use organic ingredients as much as possible.”

Kyi Kyi Sein explains: “I had already developed the recipes and carried out testing before applying for the support, but I needed more capital for production. I used the investment to buy production machines like an air dryer, a grinder, and other accessories.”

Kyi Kyi Sein places sweet potato slices into an oven for drying. (Lwin Phyu Phyu Kyaw/CPI)

Learning from honest customer feedback

To begin with, Kyi Kyi Sein produced two curry powders. One was flavored with shrimp, the other with sweet potatoes. She taste-tested them with people in her network. “I wanted honest feedback, but they were too polite and just said good things, even though the flavors needed adjusting. So, I went ahead with my original recipes even though they needed refinement.”

More useful feedback arrived once the powders reached the market. “Customers advised me to reduce the onion and sugar levels and increase the amount of salt,” she reveals. “They also said that the shrimp powder only works with shrimp curry, so I decided to add ginger juice powder and horseshoe leaf juice powder to my line of products.”

Training, connections and the price problem

The social impact investment came with more than capital. “I received training in business development and financial literacy, as well as connections,” Kyi Kyi Sein reveals. “I met one woman at a workshop who is helping me distribute products in the Ayeyarwady Region. Her chef friend tasted my curry powders and gave feedback on the formula. I also connected to a food store in Yangon, and I hope to sell through them once I have improved the packaging and obtained a Halal certificate.”

Pricing remains a harder problem. “The feedback from retailers is that my curry powder is more expensive than other brands. I buy all the ingredients wholesale and have trimmed profit margins as much as possible. However, because I use good quality ingredients free from chemicals and preservatives, it is difficult to compete solely on price. Most people in Myanmar go for the cheapest option, even if it is unhealthy.”

Kyi Kyi Sein sells her Sure brand products at a trade fair in Yangon, Myanmar, supported by Community Partners International. (Lwin Phyu Phyu Kyaw/CPI)

Doing business through an economic crisis

Myanmar’s protracted economic crisis makes trading harder every year. Nearly half the population now lives below the national poverty line. For Kyi Kyi Sein, the effects are immediate.

“I used to sell through shops supported by nonprofit organizations, but they closed because of the political situation,” she explains. “I distributed my rice bran oil shampoo through a beauty salon in Sittwe, but they also closed in December due to the conflict there. The cost of raw ingredients is rising, so I must increase prices.”

What repaying a social impact investment looks like

The social impact investment’s terms give her room to manage. “I looked into loans, but the interest rate was high, which put me under pressure,” she says. “This investment is interest-free, and the repayment plan is reasonable. Instead of paying interest, I have promised to contribute social benefits to my community. I plan to train young women in the local community to help them develop livelihoods and independence, particularly Muslim women confined to their homes.”

Ambition, and the people who doubted her

Despite the challenges, Kyi Kyi Sein loves what she does. “I love creating, testing, and producing products,” she affirms. “When customers give good feedback, I feel so satisfied.”

She is also ambitious about where the business goes next. “In the next five years, I’d like to sell my products at more stores and expand the marketing of my brand. I also want to hire new employees to expand production.”

Support has not always been there. “At first, even my father wasn’t proud of me. Some people told me I shouldn’t be doing this. But I ignored them, and many people support women’s empowerment. I want to change attitudes and make opportunities more accessible for Muslim women.”

About Community Partners International

Community Partners International (CPI) strengthens, equips and connects local organizations in Myanmar, Bangladesh and Thailand providing health, humanitarian relief and well-being services to conflict- and poverty-affected communities.

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