Port Moresby, Papua New Guinea – The United Nations Capital Development Fund (UNCDF) continues to promote and scale solutions to enhance agriculture enterprise development in the East and West Sepik region PNG with the Agri-MSME Challenge Fund - PNG. The challenge fund is being launched in partnership with the Bank of Papua New Guinea (BPNG) SME Accelerator Program under the ‘Support to Rural Entrepreneurship, Investment and Trade in Papua New Guinea’ (STREIT PNG) program supported by the European Union (EU).

The fund offers in grants over USD 300,000 (equivalent to over a million Kina), technical assistance and mentorship support, which will be awarded to 5 winning solutions. The challenge fund aims to support the expansion of solutions to lessen the financial burden of agricultural enterprises located in that region following the effects of COVID-19 in the local economy. It is targeting the private sector innovators such as agritech, fintech, supply chain financing, mobile money providers, and other firms to come together and renew the agricultural sector and support agriculture micro, small and medium enterprises (Agri-MSMEs) to improve their access to finance, knowledge, information, and markets linkage. 

“The fund will most likely address and develop the demand-side of Agri-MSME financial access and will contribute to poverty reduction through sustainable and inclusive economic development of rural areas, through the development of value chains of three commodities – cocoa, vanilla and fisheries in that region,” said Dominic Sikakau, Program Manager BPNG SME Accelerator.

The shortlisted applicants will be expected to fund at least 30% of the total project cost in cash for costs such technical resources, staff, and operational expenses. They will also attend a three-day bootcamp, pitching support, business support development and pitching mentorship.

“I am sure this challenge fund is a new beginning led by UNCDF and other concerned UN partners and stakeholders will support the design and extend similar innovative approaches in near future, to reduce gaps in financing the Sustainable Development Goals at the country level; and unlock private sector investments for the agriculture sector in PNG,” said Dirk Wagener, United Nations Resident Coordinator a.i. and UNDP Resident Representative.

“EU believes SMEs are key enterprises to the sustainable development of PNG. I am Happy for this program because along with technical assistance, companies can compete for resources that they will be able to use and to grow to expand their businesses and create jobs and opportunities for low-income areas”, said Marco Arena, EUs Innovative Financing Specialist.

The challenge is open for firms registered in PNG and also to those registered in any other South Pacific country provided they have local partner registered in PNG.

The application closes on the 25^th of October 2021 and winners will be announced on the 10^th of December with winners receiving up to 90,000 USD in Grant and technical assistance.

Inquiries to the request for applications can be submitted by email to galib.azim@uncdf.org or uncdf.rfa@uncdf.org with the subject line “Agri-MSME Challenge Fund - PNG”.

Please apply through this link: https://bit.ly/3mpECof

About the United Nations Capital Development Fund

UNCDF is the UN’s capital investment agency for the world’s 47 Least Developed Countries (LDC). UNCDF uses its capital mandate to support LDCs pursue inclusive growth. Its objective is to develop inclusive financial systems in which a range of financial products are available to all segments of society, at a reasonable cost, and on a sustainable basis. In achieving this objective, UNCDF supports a wide range of financial service providers, regulators, policy makers and relevant government ministers. Specifically, UNCDF provides a mix of policy, technical and financial support to a range of government and private sector actors in each country, as well as invests in research and other public goods that benefit all market actors.

UNCDF’s global strategy of ‘Leaving no one behind in the digital era’ is drawn out of a decade of experience in digital finance in Africa, Asia, and the Pacific. UNCDF recognizes that reaching the full potential of digital financial inclusion in support of the Sustainable Development Goals aligns with the vision of promoting digital economies that leave no one behind. The vision of UNCDF is to empower millions of people by 2024 to use services daily that leverage innovation and technology and contribute to the Sustainable Development Goals.

For more information or media inquiries please contact:
Lorraine Basse,

Communications and Knowledge Management Assistant

lorraine.basse@uncdf.org or +675 70030220