This will be executed under the ‘Market for Village Farmers’ (MVF) project worth K127 million (US$38 m).
The partnership, in conjunction with the PNG Government was signed on June 5th in Port Moresby.
According to CEFI farmers find challenging the transition from semi-subsistence farming to a market-oriented agriculture business.
And with limited financial services and products and poor money management skills, it can be overwhelming for farmers to sustain and grow their business.
Through the partnership CEFI will facilitate for 25, 000 farming households financial training and services, and products across Western Highlands, Jiwaka, Simbu and Eastern Highlands, and Morobe and East New Britain.
CEFI’s partner training providers and financial institutions will educate farmers on money management skills, develop community-level savings and innovative lending schemes, to pave way to support farmers to build a strong savings culture and grow their businesses.
“CEFI has recruited full time staff and will open an office in Goroka this month to administer the financial inclusion activities that will undertake under MVF,” said CEFI Executive Director Saliya Ranasinghe
“We will also work with financial institutions to develop suitable agriculture lending products for the sector as well as digitising payment for farmers.”
FPDA General Manager Mark Worinu said the MVF will adopt a family-based targeting approach to increase the capacities of participating farming households.
These will include women and youth to take advantage of project benefits through financial, business and nutrition education.
“The approach will also be used to engage the community to create a supportive environment for household level activities and to support broad inclusion and we’re positive of the impact of this project.” Worinu says.
The MVF is funded by the International Fund for Agricultural Development (IFAD). executed by the PNG Government through the Department of Agriculture and Livestock (DAL) and implemented by FPDA.