News 29 Mar 2018
In light of recent added pressures to the country’s encumbered financial state, local naysayers and small businesses have been asked to remain optimistic on the Small to Medium Enterprise (SME) growth.
The National Development Bank managing director Moses Liu said that while times were looking tough, the government’s aim to create 500,000 SMEs by 2030 still looked to be accomplishable.
Mr Liu said this target was still plausible due to the government’s renewed focus on stimulating economic growth as detailed in the Alotau Accord II and apparent in the 2018 National Budget through the allocation of K100 million to NDB.
“Of the K100 million provided, K50 million will be used for agriculture oriented SMEs and the other K50 million for general SMEs,” said Mr Liu.
He said although a definitive figure could not be acquired from the Investment Promotion Authority, it could be gleaned from the twenty per cent increase in demand for SME loans within the past five years that SME growth has flourished.
“You need to enquire with the Investment Promotion Authority to confirm the actual numbers of SME growth, but based on the twenty per cent increase in the demand for SME loans in the last five years and the number of new loans funded. I estimate the number of new SMEs created as around 10,000,” said Mr Liu.
He said that this estimated figure did not include micro sector businesses, but many of which are not registered by the Investment Promotion Authority.
Source: Papua New Guinea Post Courier