Post- Courier | Yu Tok | Thursday 5th June 2025

Funding for SME in the districts is important when it is aimed at promoting economic growth and creating jobs.

In many cases however this has been politicalized and funds are usually dished out by MPs to their political cronies and supporters at will. There is no policy guidelines as to how these funds are to be expended and to whom.

The MPs as Chairman of the DDAs must know that these funds belong to the people. It is not their private  cash in the penny box that they give out like “Father Christmas " does. The District Treasury is not their milking cow either.

MPs and their DDAs must have policy guidelines in place and a criteria on which to base upon to support  SMEs to make sure they are sustainable and progressing. When funds are allocated without policy guidelines the likelihood of misuse is possible. This is the reality at this moment across the country.

Also the office of the Business Development Officer and the DAL extension officers should not be overlooked as they have a critical role to play in rural economic development. These important officers must be used. They can be made to be part of the management and coordinating committee for the SME funds.

The Business Development Officers will assist with SME training, incorporation and all the necessary documentation for the formal establishment of SMEs. Likewise anything to do with Agribusiness DAL extension officers will provide the necessary input.

DDAs must collaborate with these key economic officers in the districts to make SMEs become a reality and profitable.

Further funding for SMEs should be made available to those who meet the requirements. This means that their application for funding will have to be assessed against the criteria set. Some of these criteria would be:

• SME Training;
• IPA Incorporation;
• Bank Account; and
• Business Profile.  

Once these requirements are met findings can be made.

SME funds should not be paid out without any guidelines.

Taki Boring, Port Moresby