Delegation of the European Union to Papua New Guinea

Improving access to financial services for agricultural value chain financing

24/08/2018 - 13:13
Private Sector Development

Papua New Guinea is characterised by very rugged terrain in the highlands and isolated coastal areas, which, coupled with a lack of infrastructure is the root of many development issues. Restricted access to markets and financial services hinders the development of business opportunities and Government service delivery.

The Rural Economic Development Programme supports, in its second phase (RED2), the following three interconnected components:
 
  • improve rural infrastructure in the Highlands region;
  • develop access to financial services for agricultural value chain financing;
  • develop value chain support services and service delivery capacity of local government in the Highlands region.

For the implementation of the second component, the European Union has partnered with United Nations Capital Development Fund (UNCDF) to provide support for the development of micro-finance institutions and a finance inclusion team. The objective is to facilitate the access of financial services to rural communities, including savings, credit, insurance, low-cost remittances as well as financial competency building.

Total Cost (EUR): 6 835 512

EU contracted amount (EUR): 6 000 000

Duration: October 2014 - June 2018

Implementing organisation: UNITED NATIONS CAPITAL DEVELOPMENT FUND

Funding Instrument: European Development Fund (EDF)

Benefitting zone: Papua New Guinea

 

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