The Development Bank of Solomon Islands (DBSI) has launched a low interest credit line facility for micro, small and medium enterprises in Solomon Islands (MSME).
The launching will mean indigenous Solomon Islanders intent on starting a business, or gain access to working capital for their existing businesses, will now be able to apply to the DBSI for support.
Permanent Secretary at the Ministry of Commerce, Mr. Riley Mesepitu, said that the launching of DBSI’s new financial product was made possible through the support of the government, partner agencies, and development partners.
He said that such financial products will help micro, small and medium enterprises improve cash flow and employment in Solomon Islands despite the ongoing global economic challenges caused by the pandemic.
The Minister for Commerce, Hon. Frederick Kologeto, says that it is only through investments in the country’s local businesses will there be recovery and transformation to the Solomon Islands economy – a key component of the government’s re-direction policy.
Kologeto says that for the Solomon Islands, a large chunk of MSMEs are informal enterprises who play an important role in growing the country’s economic base.
“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.
The DBSI customer relations manager, Mr. Stanley Peter Havae, thanked the government for allocating the funds 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 to 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 now be able to access the MSME credit line facility 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.
Source: With GCU