SME funding to grow
FUNDING for the small-medium enterprise (SME) sector will peak at K2 billion in the next 10 years, says Prime Minister James Marape.
During the opening of the Start-Up PNG 2019 convention in Port Moresby yesterday, he said the Government had allocated K100 million in the 2019 Supplementary Budget, and K200 million in the 2020 National Budget for this purpose.
It will split in half between businesses for women and men, with 10 per cent from each to support businesses on Bougainville.
Marape said the Government was discussing the programme with the National Development Bank and Bank South Pacific. It will continue to seek partnership with institutions such as Kina Bank for the SME loan facility.
“We are putting money in place to make SMEs and start up move in the right place,” he said.
“We want to ensure that money is funnelled correctly through institutions like the banks so that SMEs and start ups and those that really want to do business can use the fund to finance their business.
“Statistics show that only 10 to 20 per cent of Papua New Guinea and companies operating in the country carry the load of the country which is unsustainable going into the future as a nation.
“We need to create employment and business activities and we need to target micro, small medium size to large scale business.”
Marape said a vision for the Government is for the business sector to be the biggest employer in the country overtaking the public service to contribute to the economic development of the country.
6 comments
Prime Minister, good start. However, please do not park the money there at SME sector and leave it there without an action plan. PNG Political history has proven that you can give any name to a good plan or idea but once you park the money there, it will disappear just like that. PMJM. there are too many proven examples to prove my point here. My suggestion to you is this, keep all that money at Prime Minister’s Department and your department manage it. This is because you believe in empowering the people but those in charge of SME funds are not passionate like you. They will certainly allow wild pigs to steal all that money without any positive impact as intended by you for the good of our economy. Please implement what i said now before you found out in 12 months time that all that SME funds had disappeared without a trace. It has happened before. Mark my word.
Millions have been Allocated to SME’s over the Years but can we have some Statistics on How many SME’s have
actually been funded on these Programs ?
Seems Launching after Launching but how much of this funding has actually gone to the Small Business Man/Woman
A good idea but it needs a separate criteria tailored to assess loans. Via financial knowledge one can say that the bigger the loan, the greater the risk. that’s how it has been all the time with the banks. this is why our sme’s will never get anywhere because we are going by conventional assessments used by the current banks that literally discourage borrowing. You need to change that perspective and look at it this way. – “The bigger the loan, the greater the investment, the greater the return. INVEST IN START UPS! Otherwise this policy will only benefit the bigger Local businesses.
How can we local people in the village apply for that sme program? When we get through the finance company.. thy offering to much security policy on apply for this sme. So its imposible for us. Can government manage the funds and put them in right place so that it will be posible for us
Prime Minister of Papua New Guinea Honourable James Marape MP,
Women of Boroko Market Vendors Association NCD INC THANK you and applaud you for the K200 Million National Budget 2020 for SME.
We are already marketing to make 10% or 20% profit to cater our families food, School Children’s daily Bus fares and lunches.
We also put little aside for School fees, uniforms and other materials needed at School.
Our problem is Bank Loans.
Only few have the chances to obtain Bank Loans because they meet the Bank Policies.
So our humble suggestion is;
– If you are willing, put some money into our Association Account and the Members of Association will credit from our own Association Account and improve our Boroko Market and move into business from it.
We have vision for SME in a massive way so that it will lead every woman into Financial Freedom.
God bless the Prime Minister of Papua New Guinea Honourable James Marape MP and Papua New Guinea.
Ps. Betty Tolao
Secretary
Boroko Market Vendors Association NCD INC
Email : [email protected]
Mobile : 72497818 / 75222856
I advice Prime Minister the plan of SME is excellent but in the past millions have gone missing without any being arrested and put behind bars. And they are today living in luxury and while 99% of Papua New Guineans are still in poverty because of these culprits. I advice you to manage the money yourself and don’t give it to the Banks even. Set up a system where you can manage and monitor dont trust any politicians and dont trust any Bank’s they will only finance their wontoks and the good plan will fail miserably and no economic development will take place in Papua New Guinea. Prime Minister I plead with you to manage this funds yourself because we trust you, your honesty will save the people of Papua New Guinea.
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