EU chips in K23m for project

 European Union (EU) in Papua New Guinea has announced their contribution of €6 million (K23 million) to the UN Capital Development Fund (UNCDF) for financial inclusion programme in the Highlands region.  

Access to financial services is part of the €22 million (K84.3 million)  EU funded 10th EDF rural economic development phase II (REDP 2), counter signed yesterday by National Planning Minister and national authorising officer for European development funds to PNG, Charles Abel.  

The overall objective of the RED 2 programme is to contribute to improving livelihoods of people living in rural areas of the Highlands region.  

The programme will support the delivery of three interconnected components (rural infrastructures – road rehabilitation, financial inclusion, and agriculture value chain development) ensuring maximum impact on poverty reduction and sustainable economic growth.  

 The EU Commissioner for Development Andris Piebalgs, who is on a three-day tour to PNG, said EU will continue to support the development of rural communities and markets in the country.

 UNCDF will implement €6 million of the REDF 2 to support the development of mobile and branchless banking ecosystem, product diversification, and financial education in the Highlands Region.  

The highlands region, where over 42% of the total 7.2 million people live has the highest percentage of unbanked population at 91.9% compared to the national average of 85.6%.