A Memorandum of Understanding (MoU) was signed on Friday between the Investment Promotion Authority (IPA) and the Department of Community Development and Religion (DFCDR) aimed at promoting financial inclusion, business registration and, and other related activities in PNG.
The MoU is a start of a strategic partnership which was signed by the Managing Director of the IPA, Mr. Clarence M Hoot and the Secretary for the Department of Community Development and Religion, Mr. Jerry Ubase.
With a focus on fostering financial literacy, the collaborative work in the districts, including the District Community Development Centers (DCDCs) in the eight provinces, commencing with Imbonggu in Southern Highlands Province, Bialla in West New Britain Province and Gazelle in East New Britain Province in the first year.
The initiative intends to transform PNG’s economy by providing training to participants interested in transitioning to the formal sector.
This includes essential education on financial literacy, business proposals, cash flow management and Marketing finished product domestically and for export. Notably, the program aims to ensure that at least 50% of the business registrants are women, reinforcing the commitment to gender equality in economic empowerment.
The MoU also outlines a board frame for collaboration, emphasizing mutual cooperation, information sharing, and regular consultation and reviews between the IPA and DFCDR. This partnership is expected to mobilize resources effectively across the targeted provinces, ensuring participants receive the necessary training for successful business registration and operation.
The IPA and DFCDR will collaborate to engage other financial institutions, establish bank agents, digitize government payment systems, and ensure cash incentives are disbursed to agents, digitize government payments systems, and ensure cash incentives are disbursed to participants of financial literacy training.
Additionally, both parties will work jointly to monitor the progress of training and business registrations, ensuring the initiative remains accountable and impactful.
Managing Director for IPA, Mr. Hoot emphasized the importance of this partnership in supporting the informal economy, stating, “By working together, we can provide the necessary tools and resources to empower individuals in our communities, helping them transition into formal economic activities which will ultimately bolster the country’s economy.”
While the MoU sets a clear framework for the roles and responsibilities of both organizations, it explicitly states that the document is non-binding, serving solely as a declaration of intent to collaborate for the benefit of the people of Papua New Guinea.
This partnership signifies a proactive approach to economic development, aiming to uplift communities and foster a more inclusive financial landscape, facilitating regional growth and sustainable economic empowerment.
