Officially launched on June 9 in Port Moresby, Australia has partnered with Women’s Micro Bank (also known as Mama Bank) to establish the K3.5 million Revolving Fund.
This fund will enable exporters to finance SMEs to purchase quality raw materials for exports. The facility will be available to exporters and SMEs dealing with coffee, cocoa, copra and vanilla.
Nic Jonsson, Counsellor (Economics) at the Australian High Commission to Papua New Guinea, said the Australian government is proud to support Women’s Micro Bank (Mama Bank) in setting up a revolving fund that provides affordable credit to SMEs. The financial tool will enhance financial inclusion for women-owned SMEs and facilitate the export of quality coffee, cocoa, vanilla, copra and other cash crops.
Mama Bank’s board chairman, Noel Norikgu, described the partnership as a milestone for SMEs in agriculture. He said the fund will economically empower SMEs by enabling them to access credit and ease the liquidity crunch during the commodity buying season.
The Revolving Fund will allow exporters to finance SMEs to purchase raw materials from smallholder farmers multiple times a year.
The fund has two components:
• Financing SMEs’ suppliers and processors to source quality raw materials.
• Priority financing for women-owned SMEs to source quality raw materials and acquire equipment for value addition.
The Revolving Fund is a new addition to the Mama Bank’s portfolio. The bank has introduced innovative products that provide affordable finance to both growers and women-owned MSMEs, thus empowering them economically.
Most of the bank’s products include microloans for smallholders. Through the Revolving Fund, Mama Bank will provide loans to small and medium-sized enterprises (SMEs) to help them overcome the liquidity issues that agri-SMEs encounter when purchasing raw materials.
(Launch of the K3.5mil Revolving Fund for Agriculture Value Chain Financing at the Women’s Micro Bank office [Mama Bank] on June 9th, 2023. Standing with the female staff and customers of the bank are from right: Mr Ricky Mitio, Mr. Adnan Falak – Team Leader, Agriculture Growth & Livelihoods, Australia-Papua New Guinea Economic Partnership (APEP), Mr. Jagdeep Dahiya – Director, APEP, Mr. Nic Jonsson – Counsellor, Australian High Commission, Noel Norikgu – Mama Bank Board Chairman and Gunanidhi Das – CEO, Mama Bank)