MICROCAPITAL BRIEF: 3,200 Graduate from Financial Literacy Course in Papua New Guinea (PNG) Under ADB-backed Microfinance Expansion Project

As part of the Microfinance Expansion Project (MEP), which is co-financed by the Asian Development Bank (ADB) and the governments of Australia and Papua New Guinea (PNG), 3,200 people in PNG recently completed a financial education program in the city of Wewak in the province of East Sepik. The goal of the training is to help people learn to use financial services and otherwise manage their finances. Since its inception in 2012, MEP has delivered financial education to 215,000 people in PNG, 48 percent of whom are women.

The regional director of ADB’s Pacific Liaison and Coordination Office, Emma Fan, stated, “The project has substantially delivered basic financial knowledge to huge numbers of rural people in Papua New Guinea… It has allowed people, particularly women, the opportunity to open bank accounts, [engage with] mobile banking, and, overall, get better access to financial services.”

MEP, which has a budget of USD 24.9 million, also has elements that: (1) engage industry stakeholders, for example by delivering technical assistance to financial institutions regarding the provision of financial education; (2) encourage lending to micro- and small enterprises; and (3) advocate for regulatory and supervisory frameworks that will be more supportive of microfinance.

Established in 1966, the Philippines-based ADB is a development bank with the goal of eradicating poverty in the Asia-Pacific region. It is owned by 67 countries, of which 49 are located in the region. During 2018, ADB disbursed loans and grants totalling USD 21.6 billion.

By Jolene Khor, Research Associate

Sources and Additional Resources

ADB news: “3,200 People Graduate from Financial Literacy Course Supported by ADB, Australia, and PNG”
https://www.adb.org/news/3200-people-graduate-financial-literacy-course-supported-adb-australia-and-png

ADB publication: “Papua New Guinea: Microfinance Expansion Project”
https://www.adb.org/publications/papua-new-guinea-microfinance-expansion-project

ADB 2018 Annual Report
https://www.adb.org/sites/default/files/institutional-document/496016/adb-annual-report-2018.pdf

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