MSME Funding Update

Update on Funding of Government MSME K80M credit Facility Funds

The National Development Bank (NDB) would like to inform our valued customers and stakeholders on the status of the National Government’s K80 million MSME credit facility on the 30th September, 2022. Chief Executive Officer Johnson Pundari said the Government’s MSME credit facility charging an interest rate of 4% has had an overwhelming response from the micro to small and medium enterprises from all over the country.

“After ensuring appropriate governance and compliance standards were in place, funding of MSME loans commenced in November 2021. 550 MSME’s loans have been funded so far totaling K53million covering a widespread of industries which include transport and communications, retail and wholesale trade, tourism, agriculture and construction-based SME’s, to name a few,” stated Mr. Pundari. He further added that over K13m has been committed awaiting drawdown.

Mr. Pundari said the success of the program is an indication of the impact the government’s MSME credit loan facility on the livelihoods of the citizens striving to establish a business for themselves.

As a testament of the success of this Credit Facility some of these customers have been featured in the daily papers. One is a couple from Gulf Province who own and operate a successful fuel distribution business in Kerema Town. Funding assistance was for a 3.5-ton truck to assist with logistics and transportation of fuel drums to and from Kerema.

Another was for a customer in Madang who supplies and distributes Poultry and Agriculture supplies such as Day-Old-Chickens, stock feed for poultry and piggery, feeders, drinkers and complementary accessories like agriculture equipment and chemicals. This customer has a retail shop in the heart of Madang Town and he was provided a SME loan to purchase a Coaster bus to assist him to bring stock from Lae. The business is set up in a way that maximizes the use of this bus. It brings in stock from Lae and transports passengers on the return leg to Lae from Madang.

Mr. Pundari thanked the Marape Rosso Government for this initiative which has assisted many Papua New Guineans to start new business, expand on current businesses or even diversify into new business ventures and ultimately having positive impacts on the communities where these businesses are located through spin-offs and social obligations.

NDB received the K80 million grant in late 2020 and commenced disbursement of MSME Loans carrying an interest rate of 4%. “This is a tremendous initiative for the small and medium enterprises. This is a government program that targets job growth and diversity within our economy. NDB is proud to be playing a role in this initiative. We look forward to continuing to provide these facilities and more, to the hardworking MSME sector in PNG, with the invaluable support of our government,” said Mr. Pundari.