The inaugural loan from the Revolving Fund Facility, backed by the Australian Government, has been awarded to Kosem Ltd, a local family-run coffee exporting business based in Jiwaka, Papua New Guinea.
This concessional loan, facilitated by the Revolving Fund Facility, is managed by Women’s Microbank Limited, also known as Mama Bank.
A significant milestone was reached in December 2023, and Kosem Ltd became the initial recipient of this financial support. With this funding, Kosem Ltd is now well-equipped to purchase green coffee beans, positively impacting over 2,000 coffee farmers in the Wau-Waria District of Morobe.
The Australia High Commission recently announced a new economic development initiative called the Revolving Fund. This project is a collaborative effort between the Australian Government and Mama Bank, involving an investment of K3.5 million in loans. The purpose is to enhance Papua New Guinea (PNG) agriculture exports.
The Revolving Fund aims to assist agricultural SMEs by offering affordable value-chain financing. This will enable these enterprises to purchase more agricultural commodities such as coffee, cocoa, and vanilla directly from farmers.
Mark Munnul, CEO of Kosem Ltd, emphasized the importance of this initiative, stating, “Having access to funding is crucial for developing and sustaining supply chains. In the coffee industry, especially, exporters like us typically face a substantial amount of pre-financing risk throughout the season to transport coffee from the remote areas of Morobe province.”
Munnul emphasized the importance of banks recognizing the requirements of exporters like himself to maximize the potential of Papua New Guinea’s coffee industry.
Mr. Gunanidhi Das, CEO of Mama Bank, stated, “The assistance from Australia has been instrumental in enabling Mama Bank to create innovative finance products tailored for the agricultural SME sector.”
He further encouraged agricultural SMEs, especially women-led, to contact the bank to discuss their specific needs and seek financial support through this program to enhance their productivity.