GOVERNMENT last week launched two projects that it hopes will boost the Micro, Small, and Medium Enterprises (MSME).
The projects are the Micro, Small, and Medium Enterprises (MSME) Credit Line to Development Bank of Solomon Islands (DBSI) and the MSME management database.
Permanent Secretary of the Ministry of Commerce Riley Mesepitu said this was an exciting day to launch the two new products for the benefits of micro, small and medium enterprises.
DBSI’s customer relations manager Stanley Peter Havae said the products will enable entrepreneurs access a sectoral credit funding support to expand on products, interest payment support and loan guarantees under the scope and lending policies of DBSI.
“Targeted sectors include agricultural production and related industries, fisheries sector, tourism and agro-forestry,” Havae said.
“With the minimum loan of $10,000 to maximum of $3,000,000 at a low interest rate of 8% per annum over period of 5 years,” he added.
Havae said entrepreneurs will afford to access the MSME credit line facility with purposes to improve existing or start new businesses.
“Get working capital requirement and assist with export credit facilities to sustain the economy during this difficult COVID 19 pandemic.”
Director of Business Development Division Morris Raápai also took the opportunity to further explained the benefits of the MSME credit line facility and MSMEMIS data base to support the MSMEs.
Commerce minister Frederick Kologeto highlighted that investing on human resources to develop micro, small and medium enterprises involving women, youths and all working aged citizens is vital in the DCGA’s re-direction policy with strategy to create employment and income generation for recovery and transformation of the economy of Solomon Islands.
He said that investing on human resources to develop micro, small and medium enterprises involving women, youths and all working aged citizens is very vital in the DCGA’s re-direction policy with strategy to create employment and income generation for recovery and transformation of the economy of Solomon Islands.
Kologeto also stated that in lower income economies like Solomon Islands, a large share of MSMEs are informal enterprises and serve as a source of livelihood for the base of the pyramid population.
“It is more strategic to create employment and grow small and medium enterprises that transforms the informal into a broadened economic formal sector with innovative, creative and successful entrepreneurs,” Kologeto said.
“The DCGA government in recognizing the importance of MSMEs sets the re-direction policies to access appropriate business financing,” he added.
Deputy Secretary – Technical MCILI Eric George encouraged everyone to collaborate in cultivating the culture of entrepreneurship as a way forward to nurture MSMEs.
“This is through finance for MSME scale industrial enterprises, financial literacy training and mentoring programs.
“Although small-scale enterprises have key roles in industrial development in developing countries, one of the biggest challenges they face is access to financial services,” George stated.