By DALCY LULUA and TRACEY MURA
A MEMORANDUM of Understanding (MoU) was signed between the regulatory body of coconut industry in the country and a newly established financial institution; Credit Guarantee Cooperation (CGC) to facilitate and promote financial access for small to medium enterprises (SME) under Kokonas Indastri Koperesen (KIK).
The partnership was established to enhance financial support and opportunities within the coconut industry to empower farmers, processors and exporters and promote financial access for high-value coconut product processors.
Managing Director for Kokonat Indastri Koperesen (KIK) Alan Aku said the signing of the MoU is an important milestone for KIK.
“KIK has started this SME programme since 2016 with six SME and so far we have 36 active SMEs now,” Aku said.
“Over the years the SME sectors in the coconut industry have grown and now our SMEs have produced virgin coconut oil , body lotion, body oil and hair oils, soap and we want to take them into other high value added products.”
Aku further highlighted that since 2016 the SMEs struggle to get credit from financial institution and this partnership marks a milestone for the industry.
“I believe the CGC as one of the commodity organization in the country who is going to be first to sign an agreement with us and this will pave the way for our SMEs that wished to access credits and loans from commercialbanks,” he added.
CGC Chief Executive Officer Dominic Sikaku disclosed that the financial institution was recently set by the government to provide finance to SMEs in the country.
“We have about 12 financial institutions so through those financial institutions and through this MoU, we hope to work together with South Pacific Community and KIK to develop products to assist SMEs in the Kokonut Industry,” Sikaku said.
“We hope that through our network, SME in the industry can be able to access finance and basically CGC would provide the guarantee to those eligible SMEs to be able to get loan from commercial banks”
