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Marking a step forward to boost the coconut industry in Papua New Guinea, a new strategic initiative is in talks to support agricultural value chain financing for Small and Medium Enterprises (SMEs), exporters/processors, farmers and farming communities within the coconut value chain.
This was the main outcome of the first Inception mission of the European Union (EU)-funded ACP Business-Friendly project, which is officially underway in Papua New Guinea. As part of the project's inception, the Pacific Community (SPC), in partnership with the International Trade Centre (ITC), met with key collaborative partner Kokonas Indastri Koporesen (KIK), coconut stakeholders, farmers, financial institutions and support agencies in PNG from 19 to 24 November.
SPC Value Chains Specialist Sanfred Smith said there has been a positive reception of the proposed Agri Value Chain Finance concept for Coconuts by financial institutions, SME support entities, and KIK.
"Investing in agri-value chain benefits Pacific farmers and communities, empowering them to nurture their dreams and recognise the need to support their resilience in a region with many vulnerabilities like climate change and natural disasters. We recognise how crucial agriculture is to the Pacific culture, the economy and livelihoods and the existing challenges in resources and infrastructure that projects like Business-Friendly can help address," said Mr Smith.
The SPC team, Sanfred Smith and Project Implementation Officer Mr Lagi Fisher, convened meetings with key value chain actors, financial institutions, and credit guarantee institutions throughout the week to explore the development of the Agri-Value Chain Finance Scheme tailored for the coconut industry. SPC and ITC will strengthen stakeholder partnerships by providing technical assistance in the engagement with financial institutions.
"We anticipate finalising agreements with KIK to implement the business-friendly project in the next few weeks. We are also working on designing an industry-specific agri-value chain finance model for farmers, exporters, cooperatives, and SMEs in the Coconut industry," said Mr Fisher.
The Agri Value Chain (AVC) encompasses all the activities involved in producing, processing, and distributing agricultural products from farm to market. AVC Finance seeks to provide financial services at different stages of this chain to improve efficiency, reduce risks, and enhance overall productivity.
KIK Managing Director Mr Alan Aku stated that KIK was willing to collaborate with SPC to spearhead the Business-Friendly Project activities and interventions within the PNG coconut industry.
"One of the main challenges for the PNG coconut industry's MSMEs, buyers, exporters and farmers is getting financial support. This project, with its coconut-specific financing model, will enable our MSMEs, Exporters and farmers to expand and increase their output," he said.
He expressed gratitude to the EU, ACP, ITC and SPC for their generous assistance to the PNG Coconut Industry.
The visit culminated with the endorsement of the Business-Friendly Workplan for 2023-2024, as activities will continue to roll out throughout the next year to boost the coconut industry.
The 'ACP- Business Friendly: Supporting value chains through inclusive policies, investment promotion and Alliances' (ACP BF)/ACP Business-Friendly project is implemented by SPC and ITC and funded by the European Union (EU) and the Organization of African, Caribbean and Pacific States (OACPS).
About the project:
The ACP Business-Friendly programme is funded by the European Union and the Organisation of African, Caribbean and Pacific States (OACPS) and jointly implemented by ITC's Alliances for Action, the World Bank and UNIDO. It seeks to improve the ability of agribusiness firms in ACP countries to compete, grow and prosper in domestic, regional and international markets. Through the Alliances for Action approach, it promotes inclusive and sustainable agricultural value chains that value all stakeholders from farm to shelf.
About the International Trade Centre:
The International Trade Centre is the joint agency of the World Trade Organization and the United Nations. ITC assists small and medium-sized enterprises in developing and transition economies to become more competitive in global markets, thereby contributing to sustainable economic development within the frameworks of the Aid-for-Trade agenda and the United Nations' Sustainable Development Goals.
For more information, visit www.intracen.org
