February 8, 2012 in Business, e-commerce, Economy, Education, Papua New Guinea, PNG | Tags: indigenous population, National Development Bank, NDB | by Emmanuel | 5 comments It appears that there are more goodies to come from the National Development Bank (NDB). After seeing the notice for the Stret Pasin Stoa Scheme, I contacted NDB with some questions. I was glad to hear back from an old friend of the Masalai Blog, a Mr. Desmond Yaninen. For those that may not remember, back in 2009, Desmond had circulated a passionate email about the state of housing in Port Moresby. This ended up with ICCC officially directing the Commission to conduct a review on Housing. Its 2010 report and findings can be seen here and several moves have been on the way now to increase housing in PNG and Port Moresby as well. But you can certainly see where Desmond's passion was coming from and he responded to my questions as follows: " Hi Emmanuel, Thanks for your email. We raised a lot of eyebrows back in 2008 with the Real Estate Injustice email petition and I commend your active involvement in society via Masalai and Rokrok. I am now the head of all Lending for NDB and am behind a number of key initiatives aimed at empowering our indigenous population including the Stret Pasin Scheme. Answers to your questions are below:
Yes. We will assess each application on its merits and will consider accordingly. The beauty of this scheme is that now it will not be restricted to the retail sector. It may be IT, Real Estate, Import/Export, Agribusiness, Pharmaceuticals, Service, Tourism/Hospitality etc…
Maximum is K1 million, but most of the businesses we will fund should be between K100,000 – to K400,000. We plan to evenly distribute funds to all provinces and or districts.
Interest Rates will be fixed at 15% and repayment frequency will depend on the nature of the business ie. Monthly/quarterly/annually. The period for each loan will also be on a case by case basis. A business with a stronger cash flow will always be more riskier so the term will be shorter, but a weaker cash flow may have a longer term. Typically shortest period will be 2 years and max 10 years. This scheme has limits the would restrict young people from getting into business, eg. Being married, or over 25 years. Another key initiative that I am working is the NDB Youth In Business Credit Scheme. This will be run as a competition for young people from 18 – 30. They will have to submit business plans to NDB, and the best plans will receive up to K100,000 capital to kick start their businesses. Also under this scheme will be scholarships, coaching/mentoring for young people. We aim to cultivate that next generation of entrepreneurs through this scheme. Expected launching will be April 2012. Our Women In Business desk is another initiative we've established targeting the female segment. Since 2010, it has grown by over 1000% from 9 to 90 female clients and loans growing from K700,000 to K9 million at the end of 2011. In 2012 we aim to fund another K20 million to women across PNG. NDB has these, and many more brilliant strategies to financially empower our indigenous population, and giving credit where its due, this would not have been possible without the support of our good Minister – Sir Puka Temu and the O'Niel/Namah government for allocating to us K130 million this year. You are welcome to post this email on your blog as I would like to gauge the initial response and feedback from young people on the Youth In Business credit scheme. Regards, Desmond Yaninen" February 7, 2012 in bank, Business, Entrepreneurship, Papua New Guinea, PNG | Tags: business summit, Financing, food bars, foreign nationals, indigenous, indigenous business, managed businesses, National Development Bank, NDB, Shop, sme sector, Store | by Emmanuel | 9 comments Source: National Development Bank The current status of retail shops especially trade stores and food bars in our country where nearly all are run by foreign nationals is an "eye sore" and a crime against our people and a trend we must not continue to accept. These foreign nationals are now going into Districts including remote Districts to run and operate shops while our people remain spectators because of the lack of empowerment and encouragement by successive Governments, stakeholders and clear laws and policies against such takeover of what was once restricted businesses. Many are legitimising their stay by marrying unsuspecting PNG citizen women to legitimise their stay so they can trade under the name of their spouses. As discussed at the PNG Indigenous Business Summit in Kokopo last year we the citizens of our land cannot allow this to go on and must seek to regain our "birth right" by taking back and running all trade stores and food bars in this country and move into owning and running more restaurants, etc. As a result of our unified desire to take back foreign owned and managed businesses especially in the SME sector where we have enough citizens who can competently run these shops and kai bars, our "Haus Moni", the National Development Bank has made a firm decision to re-introduce the once popular and very successful "STRET PASIN STOA SCHEME" in 2012. This is made possible by the K130 million seed capital funding to NDB from our Government in the 2012 Budget. On behalf of all our people, especially our "indigenous business community", the Board and Management of NDB would like to thank the O'Neill/Namah Government for your historical and unprecedented funding support in 2012 Budget to enable NDB to re-introduce the "Stret Pasin Stoa Scheme" in 2012. In particular we would like to commend and thank the Minister for Agriculture and our Minister, Hon. Sir Puka Temu, MP for the securing of this historic funding in the 2012 Budget. Clearly the aim of the Bank is to replace all non citizen trade store and kai bar operators by citizen owners and operators. This is consistent with Vision 2050 aspirations to empower our people to create wealth for themselves. Already there is a growing class of successful PNG citizen trade store and kai bar operations hence there is no reason why many others cannot succeed provided we are prepared to work the long hours and not take up to the lazy option of leasing our properties to foreign nationals. Under the Scheme NDB will provide 100 percent funding for our citizens to take over or build new shops, bakeries and kai bars, restaurants or lease existing kai bars after you are screened and considered a fit and proper person to be provided such a "golden opportunity". This unique privilege of being backed into business by the Government through NDB under the Stret Pasin Stoa Scheme, we believe will again be a very popular scheme. We are now seeking qualified citizens to join this formerly very successful scheme. The criteria for those who want to apply to join the scheme include:
Apart from retail shops, kai bar, service station and bakeries which will qualify for funding support under the scheme, we are open to other businesses like motels, guest houses, workshops and other businesses that citizens can buy or start. Management Buy Out is of particular interest to NDB as there are already skills and competent staff and management from those who wish to particularly buy out foreign owned businesses. If the Stret Pasin Stoa concept is of very serious interest to you and you would like to work hard and develop your own business, be your own bosses and secure financial independence and freedom in future than this scheme is for you. Why work for someone else when you can work and own your own business by sending in your expression of interest to join the scheme by writing to our "Haus Moni" on this address: Mr Robert Thadeus In your expression of interest, you should clearly express why you want to join the scheme and why you should be given preference over other applicants. Please include Download in PDF Stret Pasin Sota Scheme Share the Good News from Masalai End of Article |
More Business Credit Schemes to come from National Development Bank
