Policy paper to boost SME finance in the Pacific

January 30, 2024 3:22 pm

The Asian Development Bank has today published the Pacific Finance Sector Policy Paper, which, in the long term, will benefit small and medium-sized enterprises in Fiji by improving access to finance.

Jeremy Cleaver, Senior Finance Sector Specialist at the Pacific Private Sector Development Initiative, states that it will broaden the options available to Pacific businesses seeking finances.

The authors identify Fiji and Papua New Guinea as having a more straightforward pathway for implementing Innovative Financing Mechanisms, citing existing securities laws and higher rates of financial literacy and awareness.

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Cleaver emphasizes that these financing mechanisms need to be less onerous than traditional ones to enable SMEs to access finance.

He adds that at the same time, it is essential to provide adequate oversight over new financial technologies and players to protect investors.

The Pacific Finance Sector Policy Paper is the third in a series published by the Pacific Private Sector Development Initiative.

It addresses topical issues in Pacific finance with the combined aim of assisting Pacific policymakers in alleviating the constraints faced by Pacific businesses when trying to access finance.