PRIME Minister Hon. James Marape today announced a landmark national agricultural credit scheme aimed at empowering Papua New Guinean farmers, agribusinesses, and provincial governments to drive commercial production and long-term economic growth.
He made the announcement after officially opening the National Agriculture Industry Public–Private Sector Partnership Conference in Lae.
The conference, jointly organised by the Department of Agriculture and the Consultative Implementation and Monitoring Council (CIMC), brings together key stakeholders from government, industry, and civil society to strengthen partnerships in transforming the agriculture sector into a commercially competitive industry that supports PNG’s economic future.
Prime Minister Marape described the new credit scheme as part of his government’s vision to move the nation away from over-reliance on the extractive sector and toward a productive, agriculture-led economy.
“We are rolling out the largest and most strategic targeted credit facility ever seen in this country to support agriculture, food production, and value-added exports,” Prime Minister Marape said.
The Prime Minister highlighted that this programme is designed to:
- Replace over K2 billion worth of annual food imports, including rice, dairy, and processed goods.
Empower one million farming families to generate household income through crops such as coffee, cocoa, copra, oil palm, balsa, fresh produce, and livestock.
- Create direct and indirect jobs across transport, logistics, extension services, and agro processing.
Boost domestic production for both national consumption and export markets in Asia and the Pacific, tapping into over 4 billion consumers just one flight away.
“If one million families each earn K10,000 annually through agriculture, that’s K10 billion circulating in our economy every year. This is how we build a sustainable K200 billion economy – not just through oil and gas, but by empowering our people to produce and prosper,” he said.
A New Lending Model: Long-Term, Intergenerational Loans
The facility, to be administered in partnership with the National Development Bank and commercial lenders, will offer concessionary, long-term loans to Papua New Guineans who are actively engaged in agriculture — not “paper farmers,” the Prime Minister stressed.
“These are not handouts. We are willing to provide loans with long repayment terms – 20 to 40 years – to serious farmers, cooperatives, and provincial governments. These must be intergenerational loans. We want to see agricultural families growing their businesses across generations,” he said.
Reviving Plantations and Provincial Partnerships
Prime Minister Marape called on provinces with idle or underutilised land to partner with the National Government and revitalise plantation estates through structured block farming and management models.
“We are revisiting the plantation model. Provinces must take responsibility. We will provide credit, but it must be repaid through revenue generated by productive land use,” he said.
The Prime Minister acknowledged past failures in plantation schemes, but noted that with better oversight and provincial accountability, the model can be revived successfully.
National Infrastructure Supporting Production
This credit programme aligns with major investments in Connect PNG, port infrastructure, and rural development, ensuring that production areas are linked to domestic and international markets.
“We are not building ports just for imports. These ports must enable exports. That is the point of infrastructure investment,” he emphasised.
Prime Minister Marape stressed that PNG can follow the model of nations like New Zealand, which built a globally competitive economy from a strong agricultural base.
“We don’t need to go through every phase of development. With agriculture as our foundation, we can leapfrog to a modern economy. Education, health, ICT, and services all become accessible when we have a productive economic base,” he said.
He concluded by reaffirming that this targeted agricultural credit facility is central to building a resilient, inclusive economy, where all citizens participate in wealth creation through the land.