Financing Growth

We are working to increase business access to finance, as well as access to basic financial services for business and individuals across the Pacific.

Business access to credit is critical to private sector growth. Without finance, businesses struggle to grow, meaning economic growth is slowed, jobs are not created, tax revenue does not grow, and standards of living are not raised.

Business and households in the Pacific continue to experience high levels of financial exclusion despite the prevalence of excess liquidity in many Pacific financial systems and the increased availability of savings products.

There is a strong link between access to finance and business growth, and, in turn, growth in employment and incomes. This is why PSDI works to alleviate the constraints Pacific businesses face in obtaining finance.

To address these constraints, PSDI’s financing growth work area focuses on:

  • supporting the commercial transformation of government-owned banks through implementing policies and processes to support commercial lending, development of strategic plans, and clarification of the role of state-owned banks within wider banking systems;
  • introducing financing products more suited to the Pacific, such as lending products where the borrower can use movable assets rather than land as collateral, and new capital raising platforms, such as equity crowd funding and peer-to-peer lending;
  • strengthening the capability of retirement funds to finance long-term domestic investment through the development of investment management frameworks and other policies and processes, which protects both members’ interests and the fund’s financial sustainability;
  • strengthening the financial sector’s institutional underpinnings by supporting the development of robust policies and associated legal and regulatory frameworks—a common thread through all PSDI’s work; and
  • building awareness of key policy issues through advocacy and analytical work.
Financing Growth at a glance

333% average increase

in the number of security interests registered after movable asset financing frameworks established in 9 countries

Faster loan approvals

From 28 days pre-reform to 1 day post-reform in Solomon Islands, for example

New lending products

developed for Tonga’s vanilla industry and PNG’s cocoa farmers, with more in development elsewhere

Gender disaggregated data

on secured loans now being collected in 7 countries.

Commercializing government banks

Support for strengthened foundations and commercial transformation of state-owned banks provided in 6 countries

Alternative capital raising

Facilitating development of platforms for peer-to-peer financing and equity crowdfunding
Latest News
2 December 2019
Loan product for women farmers being developed in PNG

Women working in agriculture usually cannot access the finance they need to invest in productivity improvements for their businesses as they do not own traditional collateral, such as land or buildings, that banks require for loans.

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19 September 2019
PSDI presents at the annual meeting of the Association of Financial Supervisors of Pacific Countries (AFSPC)

PSDI’s insight and expertise on improving business access to finance and strengthening Pacific financial systems was shared at the annual meeting of the Association of Financial Supervisors of Pacific Countries (AFSPC) in Nuku’alofa on 4-5 September.

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16 September 2019
Cryptocurrencies, ICO's and Facebook's Libra; implications for the Pacific

Interest in fintech, blockchain, cryptocurrencies and initial coin offerings, and their potential in the Pacific, is extraordinarily high and growing. However, in scholarly literature and the media there is widespread misunderstanding about many aspects of this phenomena.

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21 August 2019
Movables Financing Model can work in Fiji says Expert

Movables financing "has the potential to break the cycle of dependence on limited, subsidised finance and empower farmers to better manage cash flow and re-invest in their businesses: improving growing methods, planting more trees, engaging labor when needed, and accessing networks to improve sale p

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Key Publications
PSDI ANNUAL PROGRESS REPORT 2018–2019
PSDI ANNUAL PROGRESS REPORT 2018–2019
This report gives an overview of PSDI activities from July 2018 to June 2019.
PSDI Annual Progress Report 2017–2018
PSDI Annual Progress Report 2017–2018
This report gives an overview of PSDI activities from June 2017 to June 2018.
Papua New Guinea Country Overview 2018
Papua New Guinea Country Overview 2018
What is PSDI doing in the Papua New Guinea?
PSDI’s Second Newsletter: July–December 2016
PSDI’s Second Newsletter: July–December 2016
This newsletter looks back at PSDI activities over the period July-December 2016.
PSDI Annual Progress Report 2016–2017
PSDI Annual Progress Report 2016–2017
This report gives an overview of PSDI activities from June 2016 to June 2017.
PSDI Country Overviews 2017
PSDI Country Overviews 2017
What is PSDI doing in the Pacific?