Last week government through the Ministry of Commerce, Industries, Labor and Immigration (MCILI) has launched two important projects that 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.
The launching was attended by invited guests from productive sectors in government ministries, PIMEU-PMO, development partners, commercial banks, DBSI, private sectors, youth and women entrepreneurs.
Permanent Secretary Mr. Riley Mesepitu in his introductory remarks acknowledged every invited guests for attending the launching.
He stated that was an exciting day to launch the two new products for the benefits of micro, small and medium enterprises.
His acknowledgement also extended to DCGA government, Permanent Secretaries of Ministry of National Planning and Development Coordination, Ministry of Finance and Treasury, PIMEU (PMO), DBSI, development partners, private sectors and entrepreneurs for the partnership efforts rendered to ministry of Commerce, Industries, Labor and Immigration. Achievement of the milestones was a result of the partnership.
The PS further re-iterated that utilizing these products will help our micro, small and medium enterprises improve cash flow and employment in Solomon Islands in spite of the global economic challenges.
The DBSI manager in customer relations, Mr. Stanley Peter Havae thanked the DCGA government for allocating the fund to be accessible to support MSMEs. He stated that DBSI will ensure indigenous MSMEs benefit from the credit line facility as indicated by the product’s guidelines.
“This enables 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.
“With the minimum loan of $10,000.00 to maximum of $3,000,000.00 at a low interest rate of 8% per annum over period of 5 years. 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,” Havae stated.
Director of Business Development Division, Mr. 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.
Guest of honor, Honorable Minister Frederick Kologeto MCILI highlighted 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.
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
“The DCGA government in recognizing the importance of MSMEs sets the re-direction policies to access appropriate business financing,” the Minister stated.
Deputy Secretary – Technical MCILI Eric George briefly 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. He stated 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.