Financial literacy important: Official

The National Business
Bmobile sales team members Moses Vavina (right standing), Allen Kore (seated) and Gagai Nibabe (far right) assisting women from Moresby North East during the micro to small medium enterprise programme in Port Moresby on Monday. – Nationalpics by KENNEDY BANI
Prime Minister James Marape leading dignitaries during the launch of the Moresby North East micro to small medium enterprise programme in Port Moresby on Monday.

By PETER ESILA
HAVING a financial literacy certificate is one of the requirements to get a loan from the banks for micro to small medium enterprises, according to a bank official.
National Development Bank and Small to Medium Enterprise Corporation (SMEC) chairman Michael Mell said the Government had provided K200 million and it was up to the people to make that policy work.
Mell said this on Monday during the launching of Moresby North East MSME programme attended by more than 280 women groups.
MP John Kaupa said the Peoples Micro Bank had partnered with their MSME programme in the opening of new business accounts.

From left: Chemica PNG Ltd staff Renagi Kere, Ema Baupo and Ivy Bini
Peter Fauma from Telikom PNG (left) with Jenny Meia from Sogeri women’s association during the launch of the Moresby North East micro to small medium enterprise programme in Port Moresby on Monday.

“Most of the women have done their savings with MiBank for the past three months now,” Kaupa said.
“The 280 Mothers Incorporated Groups will receive funding through soft loan/grant that would help in their business to stock supplies to trade stores, canteens, poultry, piggery, mini markets and other micro entrepreneurial activities.”
Prime Minister James Marape stressed the importance of applying discipline in business.
“Invest your money, always save a little money that you get, that is very important,” Marape said.
“Your Government will be there to support SMEs.”
Marape said the Government would allocate K200 million every year for the next 5 years.
Mell said the SMEC conducted financial literacy trainings.
“Stop wasting your time and money, manage it,” Mell said.

“We have to start to change now. It is up to those of us in the SME sector to drive it.
“Let us think outside the box. We have to start to do things differently.
“Don’t do the same thing and expect results.”

2 comments

  • Financial literacy is absolutely essential. In fact people should be equipped with financial knowledge and skills before being given money and encouraged to go into business. Unless people know how to manage money, money will destroy them.

  • A lot of financial literacy training’s conducted so far was not matching for small scale informal sector into future investment taking into consideration the available resources the small people have that can be utilized into money making opportunities.

    As a community based informal sector entrepreneurship financial literacy trainer I can comment that all financial literacy training’s conducted so far were more into promoting existing business and not bridging the gap with the small entrepreneurs who had been to some extent being successful with income generating on pre-feasibility study concepts.

    We need to provide a financial literacy training that will take into consideration simple cash flow projection with profit and loss and loan repayment schedules with simple computation for a break even.

    Then a proper management of bookkeeping training be part of it to assist them become real entrepreneurs who can contribute to the nations wealth creation and sustainable livelihood. Any personal comment can email me on [email protected]

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