BY SAMIE WAIKORI
The Minister for Commerce, Industry, Labour and Immigration (MCILI), Harry Kuma, has reaffirmed the government’s commitment to the Credit and Guarantee Scheme, despite challenges faced during its initial rollout.
The scheme was recently introduced with government support to provide loans to individuals and businesses, aiming to boost Small and Medium Enterprises (SMEs), particularly in Guadalcanal and Honiara.
Speaking during the Committee of Supply in Parliament, Minister Kuma acknowledged that the scheme—and the concepts behind it—were new to many local businesses.
He said this highlighted the need for proper training and risk-mitigation measures within banks to better support recipients.
THE minister revealed that the first SBD $15 million allocated under the scheme supported around 169 loans. Of these, approximately 33% were in the agriculture sector and 27% in the transport sector.
“And I think only 10 of those loans did not perform, and they were covered under the scheme.
“We experienced challenges, but interestingly the take-up rate is very high, indicating the demand for this scheme to continue,” he said.
Minister Kuma stressed that these initial shortcomings should not discourage continuation of the program.
“We believe the challenges should not hinder us from moving forward. It is important that we assess the impact and ensure the continuity of such schemes for our people.
This credit scheme targets small and medium enterprises, so it is very important for us to continue with it,” he said.
He further noted that the program has so far been implemented mainly in Guadalcanal and Honiara, and plans are in place to gradually extend it to other provinces.
This expansion aligns with the planned growth of CEMA operations to Auki, Gizo, and other locations nationwide. CEMA is another major program under MCILI.
The Minister reiterated that although the first SBD $15 million phase had mixed outcomes, the scheme remains crucial.
“I believe that discontinuing it would not serve the best interests of SME development,” he said.
For feedback, contact: [email protected]
