PRIME Minister James Marape is scheduled to launch the nationwide online project for the PNG SME Bank Crowdfunding movement towards the end of the month.
The Executive Director of the PNG Think Tank Group, Samson Komati said the SME Bank Crowdfunding movement is first of its kind in PNG.
“The purpose of the online movement is to materialize an entity to push for the SME Bank in PNG as per the verbal suggestion by PM Marape in early 2020.
“The Securities Commission has already acknowledged the SME Bank Crowdfunding Movement and is willing to help us materialize the SME bank for our unbankable people.
“Last six months, we have made online based awareness and gathered together more than 900 SME owners, professionals, leaders, and business to pledge K10,000 each or above.
“This has now led to almost K31 million in total pledges from all over PNG,” Komati said.
He added that the group is working closely with KPMG, one of the top four accounting firms in the world to help open trust accounts for their movement.
“This also is for our law firm to help us convert the pledges into cash equity to commence the application of micro-bank license applications or to acquire an existing micro bank here in PNG or to buy shares into Westpac Bank,” he said.
Komati acknowledged the Marape government under their SME policy which sees the allocation of K200 million every year.
“A total of K200 million every year for SMEs loan scheme rollout out by Department of Commerce and Industry (K20 million), K80 million to NDB, and K100 million to BSP bank in 2020.
“In 2021, the government released another K200 million for SME loans scheme and another K200 million for 2022.
“A total of K600 million will be channeled via our banks to roll out loans at low interest with relaxed conditions to stimulate growth in business activities in SME sector in PNG,” Komati said.
He said to capitalize on this SME Policy and Budgetary intervention by government, the PNG Think Tank Group has devised the idea to set up a dedicated 100% PNG owned SME Bank to help the people, especially the unbankable people in rural urban areas.
“To take back PNG means to take back Banking sector which is main driver of economic ownership, independence, empowerment and development of PNG going into next 46 years,” he said.
The PNG Think Tank group has written to business and government agencies, enterprising and individuals to help sponsor a table at K10,000 each for five people or K2,000 per seat/ticket for its major launch of SME Bank Crowdfunding movement in Port Moresby on 30th September.
Mr. Komati said the funds raised will be used to set up the offices and employ new CEO and staff for the legal vehicle, the Asia Pacific Finance Group holdings company to legally position the movement from an idea to business entity.
The transitional Working Committee is headed by Samson Komati as the team Leader and Chairman with Mr. Paul Nerau as the Deputy Chairman.
Other members include Charles Turi CPA, Koren Rokas Maso CPA, Frank Benabo CPA, Daniel Wohweihembe , Stanley Kewa as the Secretary and Clement Nakmai in the esteemed members.
Well it’s a great idea for the people in our country since we heard about lot of money in banks for SME but the excess to it is very hard and it’s one of the aspects of economic growth and illuminate poverty and share the profits of our resources equally, thanks it’s a way forward
This is indeed a great strategy the PNG Think Tank Group is working on which will truly benefit/assist the unbanked population and in particular, those who are being disadvantaged from accessing SME funds made available by the Government through NDB and BSP because of their stringent and tightened lending policies.
This business idea when converted into a complete business plan to establish the SME Bank will imernsely grow and empower SME Sector. When this idea comes into fruition, I can already see ahead the positive benefits and effects it would have on the lives of our people (from rural to urban), and other sectors such as health, education and Law & Order etc. leading to Positive Economic Growth.
You guys are a great team working on a very invaluable project and I want to commend you for your work. Well done for fitting the SME puzzle together.
Our Good Lord will guide you with wisdom, unerstanding and continue to give you the direction to complete this project for the well-being of His people.
To much talking no action
Thankyou PM J Marape for the great initiative.You made some of the struggle business see light at the end.Their dreams will be achieved.
Why start another SME bank when you already have National Development bank….Are the visions and objectives of NDB and the proposed SME bank different. Otherwise you create another duplicate body that more or less will provide same banking services. So the best practical and low cost strategy is to holistic revamp the NDB to ensure it is sme focus as well as a retail bank. The current PM when he came into power is to make NDB to become the commercial bank for PNGeans. I hope it does not end up like Bmobile operating on its own and then merging with Telikom..
Good initiative but we have NDB. Relook at the policy framework for NDB and readjust where necessary to focus on growing MSME’s.
Under the current scenario NDB does not know how to facilitate the entry of Micro Enterprises and to facilitate their growth. NDB is already in existence. We just have to re-strategize going forward to grow the MSME Sector bearing in mind the holistic policy framework of the SME Master Plan 2016-2030 which targets 500,000 MSME’s by 2030.
The SME Master Plan is currently under review. This is timely as the direction by which the SME Plan has been managed by SME Corporation is not indicative of reaching 500,000 by 2030.
In line with the SME Plan under review, the NDB also need to be reviewed so that there is synergy in implementation.
It’s all about establishing the systems and structures to facilitate the development and growth of MSMEs.
Unless the government thinks otherwise of the NDB Charter, we just have to re-strategize going forward for MSME development and growth to reach 500,000 MSMEs by 2030 in line with the projected growth target.
In conclusion, the idea of SME bank will be another duplicate. We just have to do better.
This is a very good idea. I knew few Papua New Guineans SMEs who benefited from crowd-funding facilitated by overseas organisations. This idea will definitely work.
I would like to suggest that one of our existing banks should create a section/division that will facilitate the transactions.
We have NDB, Women’s Microbank and MiBank already operating in the country. Can we get all these MSMEs, SMEs, Corporations, Politicians, Tink tankers, businessman, etc to pledge support or buy shares in any or one of these entities to get it locally owned and acquire Wespac Bank. Additionally let us support or subsidise local exporters in the country. That way we can make PNG the Richest Black nation on Earth. My suggestions thank you.👍
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