By Miriam Malawa
IN a resounding commitment to empower local entrepreneurs and foster economic growth, the Kerowagi Member of Parliament (MP), Francis Siune, announced the allocation of K1 million to establish the Kerowagi District Small Medium Enterprise (SME) Credit Scheme Loan Facility in partnership with the National Development Bank (NDB).
The bold move reflects a concerted effort to catalyse economic development in the district and boost its entrepreneurial spirit.
NDB’s Chief Executive Officer Johnson Pundari, during the signing of an Memorandum of Agreement (MoA) with Kerowagi District on Wednesday (August 9) in Port Moresby, commended the MP for the investment. “We have been talking about a lot of things and about the policies, but our people are not feeling its impact, nor seeing or hearing about it,” he said.
“But this initiative is putting money where the mouth is.” Pundari said the significance of the initiative goes beyond mere financial assistance. “It’s not a handout but a hand up,” he said.
“Putting your hand out to help our people get up.“It helps people not to front up at your office seeking free handouts, but to come to NDB to get financial assistance to start a business.
“The bank will screen and allow genuine people. “NDB will play the role to remove those that think that it’s a free handout.”Acknowledging the challenges faced by small businesses, Pundari said: “There are one or two businessmen and women who are limited by the capacity and these are the people that this fund will help. “It’s not for all to succeed, but it’s for those that are committed to starting up something.” Siune, the driving force behind the initiative, highlighted the need to help the economically vulnerable. “I didn’t introduce SME in the district because there are so many factors that are surrounding the SME area,” he said.
“As you have said, not many will succeed, only a few.“I want to help the financially impoverished people with a business facing difficulties. “I want to ensure that these people are financially secure.”“Maybe K1 million is not enough; we will still provide funds.“There are three levels of business, so we have to ensure that we serve them according to their needs.“This is the first trial and we will continue to support (the concept) because at the end of the day, we have to move these people to the next level.”
The MP said the commitment is a comprehensive approach that extends beyond financial support.“Under this MoA, we have to also provide financial training,” Siune said.“We have to train them to progress from where they are now.“They have the potential.
“The majority of our people are still not financially able. “So, we have to change that and make about nine people out of ten be financially able.”He urged the Kerowagi people to embrace transformation and financial literacy. “I urge the Kerowagi people to transform and build their lives and be able to manage the money,” Siune said.The MoA signed between Siune and the NDB outlines a comprehensive plan for the SME credit scheme. According to the MoA agreement, the scheme will operate with a 20% equity requirement, backed by the district’s fund, ensuring a shared commitment to its success and sustainability.
Security for the loans will be secured by the district, providing a safety net for both borrowers and lenders. The loan term, a critical factor in supporting small businesses, is set at two years. This approach recognises the need for flexibility and manageable repayment terms, aligning with the unique challenges and opportunities faced by local entrepreneurs.
