THE PNG National Research Institute (PNG NRI) hosted Government’s Micro-Small & Medium Enterprise (MSME) credit scheme seminar in Port Moresby yesterday.
The seminar underscores a concept of doing awareness and delivering necessary information to create a positive impact in the space of MSME.
PNG NRI Deputy Director for Research, Associate Professor Eugene Ezebilo said there has been significant growth in SMEs all over the world.
According to reports, Ezebilo confirmed there are 358 million SMEs all over the world and still growing.
“Based on the current SME policy, PNG should have 500, 000 SMEs in the country by 2030,” the Professor stated.
He said the goal for the recent approach is to allow access to financing that could contribute to growing and developing MSMEs.
The seminar outlines one of the major barriers of the growth and development of locally MSMEs especially in Papua New Guinea.
No enough funds or having issues in accessing available loans from the commercial banks was outlined as one of the major barriers.
MSME slowly picks in 2019 when the Marape-Rosso Government allocated MSME credit facility with a funding of K100 million then followed by K200 million in 2020 and 2022 respectively.
Two of the commercial banks that the Government distributed the funds were the Bank of South Pacific (BSP) and the National Development Bank (NDB), with the directive of lending to MSME as a stimulus program that could bring more people into SME and develop existing MSME.
Professor Ezebilo explained that 2023 records show 50 000 SMEs have been operating in PNG and the country needs to create 55 000 every year to reach 2030 target.
Meanwhile, SME Cooperation has contributed to providing entrepreneurship and financial literacy training to more than 22 000 owners of MSME in over 6 000 wards around the country.
These training includes: Start and Improve Your Business (SIYB), allowing them to learn about capacity building and training program as a mandatory prerequisite that can help them seek government funding through MSME.
This emphasis on MSME aims to bring hope to communities along with the investment by government into MSME.
