The Centre for Excellence in Financial Inclusion (CEFI) and the SME Corporation (SMEC) will work in partnership together in advancing financial inclusion in Papua New Guinea following a Memorandum of Understanding (MoU).

CEFI Executive Director Mr. Saliya Ranasigne and SMEC Managing Director Mr. Petrus Ralda signed a MoU on Tuesday August 13 at the SMEC Head Office in Port Moresby.

The MoU which will run for three years will see both organizations advancing financial inclusion and fostering the growth of Micro Small and Medium Enterprises across the nation of Papua New Guinea.

Mr. Ranasinghe in his opening remarks stated the partnership between CEFI and SMEC is important as both share the same goals in building and developing skills through their business skills training and financial literacy training respectively.

“We strongly believe that development of MSME sector definitely be the engine of growth of this country in the future. And we really appreciate the contribution made by SME Corporation for driving the Micro, Small and Medium Enterprise.”

“As two national entities, this particular partnership will definitely drive policy influence where we can definitely change the mindset of building this faculty.”

“We are looking forward to this partnership as it will bring a new dimension for Micro Small and Medium enterprise development in PNG and to contribute to a much more prosperous future and a better standard of living for all of the people in this country and also for a better future for the next generation,” Mr. Ranasinghe.

In response SMEC Managing Director Petrus Ralda stated through the MoU, SMEC and CEFI can share resources and will be able to integrate the components of programs host by CEFI and the programs host by SMEC and be able to support the MSME sector throughout the country.

“We have to work together, go back to the basics, see the changes, do the integrations, and then work together, and share resources so that we can be able to achieve our objectives and make a lot of impact at the end of the year.”

“Access to finance is a very key component of MSME development, one of the key constraints in SME policy implementation. Working together like this with your network, with the CEFI’s cooperation network, we can be able to work together, CEFI can achieve its objectives, and SMEC can achieve its objectives, and we can be able to work together and support MSME sector going forward,” concluded Mr. Ralda.

Some of the compelling reasons for this partnership highlighted in the MoU include; complementary objectives, integrated support ecosystem, capacity building, policy advocacy, regional reach and innovation and technology.

According to the MoU, the partnership between CEFI and SMEC has the potential to catalyze inclusive growth, empower MSMEs and contribute to the socioeconomic development of Papua New Guinea, by combing their strengths and resources, they can create a synergistic impact that benefits both MSME sector and the broader economy.

Image Captions:

Image 1. (2nd from left) CEFI Executive Director Mr. Saliya Ranasinghe and SMEC Managing Director Mr. Petrus Ralda sign the MoU documents. Witnessing the signing are CEFI’s Deputy Executive Director Mr. Peter Samuel (far left) and Mrs Diana Guria of SMEC (far right).

Image 2. (from left to right) CEFI Executive Director Mr. Saliya Ranasinghe and SMEC Managing Director Mr. Petrus Ralda shake hands to signify both organizations partnership in advancing financial inclusion in PNG.

For further information on the work of CEFI please contact CEFI Communications Team: +675 3225300, email: lomaro@thecefi.org  or visit www.thecefi.org

Port Moresby, Papua New Guinea, July 25, 2024 – The Bank of Papua New Guinea (BPNG), Australia and New Zealand Banking Corporation (PNG) Ltd (“ANZ”) and the Global Green Growth Institute (GGGI) have signed a Memorandum of Understanding (MoU) to integrate and reinforce the Inclusive Green Finance Policy (IGFP) into ANZ’s operations and services.

The MoU establishes a framework for cooperation and collaboration between the parties to support Papua New Guinea’s IGFP. This collaboration leverages ANZ’s comparative advantages, ensuring complementarity and mutual reinforcement among all parties. Under the MoU, ANZ will pilot the inclusive green taxonomy through green loans.

ANZ is the fourth financial institution to join this initiative, following the Bank of South Pacific (BSP), Nationwide Micro Bank (MiBank), and Women’s Micro Bank Ltd (Mama Bank), who signed similar MoUs with GGGI and BPNG earlier this year.

Funded by the New Zealand Ministry of Foreign Affairs and Trade (NZ-MFAT) through the “Low-Emissions Carbon Reduction Development” Program, the Green Finance Centre will provide policy advisory services, technical assistance, knowledge-sharing, and capacity-building activities to all four financial institutions. GGGI is providing all technical and administrative support to GFC who is guided by the IGFP Steering Committee chaired by BPNG.

As part of the MoU, GFC will conduct a needs assessment on ANZ to shape the development of green loan products aligned with the taxonomy. GFC and ANZ will also hold periodic consultations to review the planning, implementation, and outcomes of their cooperation, identifying opportunities for enhancing collaboration.

In anticipation of the Agence Française de Développement (AFD) funded program “Greening the Pacific Financial System” (GPFS), GFC will establish and capitalize the Green Refinancing Facility (GRF) with 1.8 million Euros in Papua New Guinea. Financial institutions aligned with the IGFP and the MoUs will qualify to access the GRF.

BPNG Governor Mrs. Elizabeth Genia expressed her excitement and gratitude at the MoU signing event, noting ANZ’s commitment to developing green products aligned with the Green Taxonomy. She also thanked GGGI for its guidance and support in coordinating with ANZ to implement the MoU.

ANZ CEO Mr. Lachlan Halstead remarked on his enthusiasm for signing the MoU and participating in this important initiative. He emphasized that such initiatives align with ANZ’s goal of developing social and sustainable loan products in the PNG market. Given PNG’s developing economy, these initiatives are essential, he added.

GGGI PNG and Solomon Islands Country Representative Mr. Sakiusa Tuisolia highlighted the significance of the MoU signing with ANZ, noting ANZ’s long-standing presence in PNG for over 100 years. Mr. Tuisolia stressed that despite international efforts to combat climate change in PNG, more support, funding, and resources from the domestic private sector are necessary. Financial institutions like ANZ play a critical role in this endeavor.

Image Caption:

Group Photo (L-R) BPNG Assistant Governor (Finance & Payments), Mr. Simon Gaius, BPNG Assistant Governor (Financial System Stability Group) Mr. George Awap, GGGI PNG & Solomon Island Country Representative Mr. Sakiusa Tuisolia, BPNG Governor Ms. Elizabeth  Genia, ANZ Country Head Mr. Lachlan Halstead and BPNG Deputy Governor Mr. Jeffery Yabom at the Inclusive Finance Project MoU Signing Ceremony

Port Moresby, Papua New Guinea, July 24, 2024 — The Green Finance Centre (GFC) under the Inclusive Green Finance Project (IGFP) hosted its first Technical Working Group (TWG) Meeting of the year at the Hilton Hotels, Port Moresby. Since the IGFP’s inception in 2021, this was the fourth TWG meeting. The meeting saw participation from representatives across key sectors, including government departments, financial institutions, bilateral and multilateral partners, civil society organizations, non-governmental organizations, and private sector entities.

Image Captions:

Photo 1 -Members of the TWG pose for a group photo.

Photo 2 – Panelists engaging in discussion with the TWG during the meeting.

Photo 3 & 4 – The TWG Meeting held at the Hilton Hotel, Port Moresby.

During the meeting, the GFC provided updates on its activities, progress, and the remaining year’s work plan. The GFC was established in March 2024 to create the institutional, policy and regulatory framework for a green, sustainable and inclusive financial sector in PNG. The TWG members in their deliberations identified 5 priority sectors for the GFC to focus on under the Green Taxonomy which is a new classification system for tracking the lending in the banking and financial sector in PNG towards green and sustainable activities that support the government’s climate mitigation and adaptation objective to address the adverse impacts of climate change in the country.

The TWG plays a crucial role in IGFP governance, facilitating key stakeholder engagements and consultations. Discussions and decisions from the TWG are presented to the IGFP Steering Committee for approval and endorsement.

The TWG has previously contributed to developing the Inclusive and Green Finance Policy (IGF Policy), which features Papua New Guinea’s Inclusive and Green Taxonomy and the IGFP’s Implementation Roadmap. The GFC has now assumed responsibility for implementing the policy, further updating the Green Taxonomy, and executing the roadmap.

Currently, the IGFP is in Phase 2, focusing on enhancing financial institutions’ readiness to apply the taxonomy to their lending operations and developing green loan products aligned with the Green Taxonomy. This work is supported by ongoing funding from the New Zealand Government through the New Zealand Ministry of Foreign Affairs and Trade (NZ-MFAT).

In Phase 3, with support from the Agence Française de Développement (AFD), the GFC will develop a Green Refinancing Facility (GRF) to incentivize and scale up green loan volumes initiated in Phase 2.

The TWG members discussed the progress, risks, partnerships, and opportunities of IGFP’s Phase 2 and Phase 3, offering necessary advice on preparing for green loan activities.

Bank of Papua New Guinea’s Assistant Governor and Chairperson of the IGFP Steering Committee, Mr. George Awap, welcomed the TWG members and emphasized the importance of the Green Finance initiatives. He reiterated the need for collaboration and participation from all sectors to create an inclusive, sustainable, and climate-resilient financial sector in Papua New Guinea.

A key feature of the program was a panel discussion on the topic “Importance of Collaborating Inclusive Green Finance and Sustainable Finance in PNG.” The panel included:

• Debra Sungi, Acting Managing Director, Climate Change & Development Authority (CCDA)
• Sakiusa Tuisolia, Country Representative, Global Green Growth Institute, PNG & Solomon Islands
• Saliya Ranasinghe, Executive Director, Centre for Excellence in Financial Inclusion
• Benoit Chassattee, Resident Representative, Agence Française de Développement (AFD)
• Markus Scheuermaier, Resident Representative, International Finance Corporation (IFC)

Each panelist shared their organization’s involvement in the sustainable finance landscape globally and their efforts in assisting Papua New Guinea to develop and implement green growth strategies that align economic development with environmental sustainability. These strategies include policies, investment plans, and regulatory frameworks that encourage sustainable practices and green investments.

Press Release Authorized by Chairperson of GFC Steering Committee, Assistant Governor, Mr. George Awap.

About Green Finance Centre

The Green Finance Centre (GFC) is a Bank of Papua New Guinea (BPNG) initiative. Its primary role is to transform Papua New Guinea’s financial sector into one that is inclusive, climate resilient and promotes green economic growth. It serves as the entity responsible for implementing the Inclusive and Green Finance Policy (IGFP) and all future initiatives related to green finance in Papua New Guinea.

The Green Finance Centre was officially launched on 25th March 2024 by Chief Secretary to the Government of Papua New Guinea Mr. Ivan Pomaleu OBE, Conservation Environment & Climate Change Minister Hon Simo Kilepa MP, and the Governor of the Bank of Papua New Guinea Mrs. Elizabeth Genia.

Currently, the Green Finance Centre reports to a steering committee that is chaired by BPNG. Other members of the steering committee include the Centre of Excellence in Financial Inclusion (CEFI), the Climate Change Development Authority (CCDA), the Department of Treasury, the Alliance for Financial Inclusion (AFI), the Global Green Growth Institute (GGGI)(Observer), New Zealand Ministry of Foreign Affairs and Trade (MFAT)(observer) and the Agence Française de Développement (AFD)(observer).

GFC Media Contact

Mr. Angus Moina Tel: 322 5308 / 7151 2017

Email: angus.moina@gfcpng.com

The Centre for Excellence in Financial Inclusion (CEFI) and the Madang Provincial Government (MPG) signed a Memorandum of Understanding(MOU) to introduce financial Inclusion activities in the province.

Madang is the first province in the Momase Region and the sixth province to sign a MoU with CEFI, following Milne Bay, West New Britain, Western Highlands, East New Britain and New Ireland provinces.

Present to sign the MoU in Madang province on Friday 12th July, 2024,  included Governor for Madang Province Hon. Mr. Ramsey Pariwa, MP, Assistant Governor, Financial System Stability Group (FSSG), Bank of Papua New Guinea (BPNG) and Alternate Chair CEFI Board, Mr. George Awap and CEFI Executive Director Mr. Saliya Ranasinghe.

Also present to witness the signing ceremony were CEFI Board Members including, CEFI Deputy Executive Director Mr. Peter Samuel, Ms. Susil Nelson Kongoi and Mr. Sanja Pepae.

The objective of the MoU is to forge a partnership in rolling out financial inclusion activities and programs align with the targets set out in the National Financial Inclusion Strategy 2023-207.

And also to advocate and create awareness of financial literature and education with an aim to empower individuals to alleviate themselves from poverty.

The Madang Governor Hon. Mr. Ramsey Pariwa thanked BPNG, CEFI, USAID and other development partners for their collaboration and working with his administration to put in place a plan for financial inclusion for the province.

“The national government in its Medium Term Development Plan IV(MTDP IV) is looking at growing the economy base, through its intervention program on banking and finance and financial inclusion, further  the Madang Provincial Integrated Development Plan was aligned to the MTDP IV.

“We have captured banking and finance in our provincial plan, that’s an indication that we are serious in looking at banking and finance and SMES in the province,” said the Hon Governor.

The Assistant Governor, FSSG, BPNG and Alternate Chair CEFI Board, Mr George Awap also emphasized the importance of financial education stressing the need for Papua New Guineans to know how to manage their finances.

“If a population is literate financially, it’s about empowering the people to do their business in the most efficient and cost-effective manner. Because if small businesses incur losses, they will give up hope in business because they have no financial knowledge and the ability to manage their own finances,” Mr. Aawap said

CEFI Executive Director, Mr. Saliya Ranasinghe told Governor Pariwa and members of the Madang Provincial Government (MPG) that CEFI was pleased to sign the MoU with MPG to address the issue of financial inclusion.

“A larger percentage of people in this country are not involved in banking activities. Even though the banks have increased their outreach, a lot of people still do not enjoy the benefits of the banking sector.

“Our main aim is to bring these people into the financial mainstream, so that they can get benefits out of the banks, and we are proud to say that we now have about 4.2 million bank accounts in the country and 38% of those bank accounts are owned by women,” Mr. Ranasinghe said.

Ends.

Image Captions:

Photo 1 – The Assistant Governor, FSSG, BPNG and Alternate Chair CEFI Board, Mr George Awap  (2nd from left), CEFI Executive Director Mr. Saliya Ranasinghe (1st from left) and Madang Province Governor Hon Ramsey Pariwa (3rd from left) signing the MoU documents.

Photo 2 – The Assistant Governor, FSSG, BPNG and Alternate Chair CEFI Board, Mr George Awap  (left) and Madang Province Governor Hon Ramsey Pariwa shaking hands after signing the MoU documents.

Photo 3 – (from left to right), CEFI Executive Director Mr. Saliya Ranasinghe, Assistant Governor, FSSG, BPNG and Alternate Chair CEFI Board, Mr George Awap, Madang Province Governor Hon Ramsey Pariwa, Mr. Sanja Pepae, First Assistant Secretary, Macro Planning, representing Department of National Planning and Monitoring and also representing CEFI Deputy Chair and Board Member Mr. Michael Tumbo Kumung,  Ms. Susil Nelson Kongoi, CEFI Board Member and Chief Executive Officer Institute of Banking and Business Management and CEFI Deputy Executive Director Mr. Peter Samuel pose for a group photo after the signing ceremony.

Photo 4 –  Mr George Awap, Assistant Governor, FSSG, BPNG and Alternate Chair CEFI Board.

Photo 5 –  Madang Province Governor Hon Ramsey Pariwa.

Photo 6 – CEFI Executive Director Mr. Saliya Ranasinghe.

Joint Media Release

For Immediate Release

Friday June 21, 2024

The National Superannuation Fund (Nafsund) Limited signed a Memorandum of Understanding (MoU) with the Centre for Excellence in Financial Inclusion (CEFI) on June 21, 2024.

This MoU is a three year partnership between Nasfund and CEFI that enables both organizations to work together in enhancing superannuation awareness with CEFI’s Financial Inclusion Activities.

CEFI’s collaboration with Nasfund is important as this will advance superannuation awareness within CEFI’s Financial Literacy Training Program and assist CEFI also in incorporating superannuation into schools curriculum activities plus supporting Provincial Government Engagement Programs.The main activities during the three year partnership will include;

• Advancing superannuation awareness within CEFI’s Financial Literacy Training Program by jointly producing 3-5 minutes financial literacy and superannuation videos for awareness purposes to promote financial inclusion in Papua New Guinea
• Assist CEFI with the integration of superannuation into Financial Education for schools Curriculum Project through the department of Education, Curriculum Development Division.
• And support CEFI by participating in the Provincial Government Engagement Program involving conducting awareness behind the rationale of superannuation to the Provincial Steering Committee Members and collaboratively organizing Savings for Young Mind campaigns via superannuation across designated schools in the provinces.

CEFI’s Executive Director Mr. Saliya Ranasinghe when commenting on the MoU stated that the partnership between the two organizations is important as it highlights their commitment to expand financial inclusion awareness in Papua New Guinea.

Mr. Ranasinghe further elaborated that CEFI through this partnership with Nasfund will now be able to offer Papua New Guineans financial literacy and superannuation awareness   through the activities outlined in the MoU.

“Financial literacy education plays a very important role as it’s brings new knowledge and changes people’s attitude.”

“We hope that this initiative will change the lives of Papua New Guineans to have a better understanding of superannuation and the importance of savings,” Mr. Ranasinghe said.

Nasfund CEO Rajeev Sharma said “Nasfund is proud to announce a series of strategic initiatives aimed at enhancing superannuation education and financial literacy among Papua New Guineans. As part of its commitment to fostering a culture of savings and retirement planning, Nasfund is rolling out three key programs: the School Superannuation Program, the Superannuation Literacy Program, and the long-standing Shopfloor Program.”

Nasfund’s strategic Key Performance Indicators prioritizes superannuation education and inclusion, focusing on the youth through the School Superannuation Program. This initiative targets school children and young people, educating them on the importance of saving and retirement planning from an early age. With the backdrop of high inflation and increasing life expectancy, instilling a savings culture among the youth is critical for ensuring a secure financial future.

Complementing the School Superannuation Program, Nasfund runs the Superannuation Literacy Program for its members and prospective members. This program is designed to deepen understanding of superannuation, providing guidance on effective budgeting and the benefits of maximizing voluntary contributions. “Developed with insights from staff training at the Centre for Excellence in Financial Inclusion (CEFI) in 2022, the program integrates comprehensive modules on savings and budgeting, ensuring that participants are well-equipped to boost their superannuation, “said CEO Sharma.

For over 20 years, Nasfund has been actively engaging with its members and contributing employers through the Shopfloor Program. This program involves regular visits to workplaces, creating awareness about superannuation and Nasfund’s range of products and services. The continuous engagement through the Shopfloor Program underscores Nasfund’s dedication to ensuring that its members are well-informed about their retirement options.

At the core of Nasfund’s initiative is the belief that information is crucial. By educating its members today, Nasfund aims to ensure they are “Ready for Tomorrow” with a well-secured retirement. Through its comprehensive educational programs, Nasfund is empowering members with the knowledge and tools necessary to make informed decisions about their financial future.

Ends.

For further information on the work of CEFI please contact CEFI Communications Team: +675 3225300, email: lomaro@thecefi.org  or visit www.thecefi.org