The Centre of Excellence in Financial Inclusion (CEFI) and the Department for Community Development and Religion (DFCDR) have formalised a partnership aimed at implementing the Child Nutrition and Social Protection (CNSP) project that enhance financial inclusion across PNG.
The two organisations signed a Memorandum of Agreement (MOA) on Wednesday, 11 March, at DFCDR’s Kwalimu Haus office in Port Moresby.
The World Bank, represented virtually by Senior Economist Mr. Ning Fu, supports the project by providing funding and technical expertise to improve government systems, child health, and social protection mechanisms such as conditional cash transfers for vulnerable families.
The agreement made to implement the Child Nutrition and Social Protection (CNSP) Project, a project funded by the World Bank through PNG government initiative to reduce child malnutrition and strengthen household resilience among vulnerable families. Through the project, eligible low-income households will receive conditional cash transfers, known as Child Nutrition Grants, delivered through regulated financial service providers.
Under the arrangement, the grants will be deposited directly into bank accounts and mobile wallet accounts to promote transparency, security and access to formal financial services. CEFI will play a key coordinating role by engaging financial service providers, strengthening payment delivery systems and coordinate partner provincial governments to roll out the project implementation efficiency and effective.
The agreement also focuses on expanding financial access points such as banking agents and ATMs in project areas, supporting digital payment systems and promoting gender-inclusive agent networks. It further outlines collaboration between DFCDR, CEFI and the World Bank to support monitoring, reporting and effective implementation of the programme.
Speaking during the signing ceremony, CEFI Acting Executive Director Peter Samuel thanked DFCDR and development partners for their support in finalising the agreement.
“I’d like to acknowledge the Secretary for giving us the opportunity to meet and complete this project agreement,” Mr Samuel said.
He also acknowledged the support of the World Bank team and DFCDR officials who worked together to coordinate the initiative.
Mr Samuel explained that CEFI was established by the Bank of Papua New Guinea to address the large number of Papua New Guineans previously excluded from the formal financial system.
“At one stage nearly 70 per cent of our population did not have access to banking services,” he said. “That meant many people were outside the formal financial system.”
However, he noted that significant progress has been made over the past decade.
“We started with about 800 bank accounts nationwide. Today we have almost 4.6 million accounts, and around 50 per cent of those belong to women,” Mr Samuel said.
He said the new partnership would support the country’s financial inclusion targets, which include creating two million additional bank accounts and establishing about 1,500 financial access points across Papua New Guinea.
According to Mr Samuel, the initiative will also support financial literacy training, strengthen digital banking skills and help identify small and medium enterprises that could benefit from business development programmes.
“This project will play a critical role in helping us meet our national targets and improving livelihoods at the district level,” he said. “We look forward to working closely together to achieve these goals,” mr Samuel said.
Under the MOA CEFI will support DFCDR to carry out a defined set of activities to the Financial Service Provider (FSP) and Agent Network Expansion in support of the CNSP Project.
CEFI’s agreement will focus on two primary workstreams:
Coordination Activities:
- Facilitate engagement with FSPs
- Support DfCDR field operations
- Engage with provincial governments
- Conduct quarterly independent reviews
- Prepare quarterly progress reports
Agent Network Support Activities:
- Lead the design and implementation of performance based incentives structures
- Advise on the revision and alignment of payment agreements with FSPs
- Participate in DfCDR led annual review meetings
- Maintain regular communication and consultation
DFCDR Secretary Jerry Ubase emphasised the importance of financial literacy and inclusive economic participation in creating opportunities for Papua New Guineans, particularly women in rural communities.
“Our duty is to help create the one million jobs our Prime Minister has spoken about,” Mr Ubase said. “These opportunities cannot come only from formal employment but also from financial literacy and economic training at the sub-national level.”
Mr Ubase said the CNSP project had already made progress in delivering financial literacy training through community trainers across districts and provinces. He noted that the programme now includes opening bank accounts for participants immediately after training.
“This time we are doing something different. After the training, we open an account for them so everything is done at a one-stop shop,” he said.
He added that the initiative has already produced positive outcomes, particularly for mothers who are now able to save money, support household expenses and contribute to their children’s school fees.
“All we want is for our people to be productive and engaged in their communities,” Mr Ubase said.
CNSP Component Manager Joseph Klapat said the partnership would also help mobilise more financial service providers to support the programme’s expansion.
“We were able to register about 24,000 beneficiaries last year, and this year we have set a target of 10,000 more,” Mr Klapat said.
He said the agreement would enable the project to engage additional banks and expand its reach to more provinces.
“The project is designed for long-term sustainability. We want to ensure it reaches as many people as possible,” he said, describing the initiative as an important step towards reducing poverty and strengthening financial resilience across Papua New Guinea.
Ends.
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About CEFI
CEFI was established under the Association Incorporation Act and officially launched on the 24th of April 2013. CEFI was endorsed by PNG’s National Executive Council (NEC) as the industry apex organization for coordinating, advocating and moniotoring all financial inclusion activities in PNG.
CEFI’s vision, mission and values focus on financial inclusion and literacy, poverty elimination and the promotion of vibrant financial institutional operation in Papua New Guinea.
Visit our website – www.thecefi.org
Media Contact:
Mr. Leslie Omaro
Communication Officer
Phone: 7464 5678
Email: lomaro@thecefi.org
