Impact Stories from the Pacific Region Breaking Down the Barriers to Business More Private Sector Reform Stories Contents
1 Foreword Banking the Unbanked 2 A widow and small-time coffee grower in remote Papua New Guinea province is one of thousands of customers benefiting from a successful microbank focused on the needs of the poor. Network Rollout Puts a Nation in Touch 6 After a long wait, telecommunications services are becoming available to even the remotest regions in Papua New Guinea, supported by a private-sector loan project. Adapting to Climate Change and Generating Incomes 12 Lashed by rain, Solomon Islands are rolling out “climate-proofed” transportation infrastructure that will facilitate local trade and provide long-term construction and maintenance employment. Loans In a Day 16 Sweeping business reforms assisted by ADB are making it easier to raise money and do business. Rebirth of a Marina 20 The sale and rehabilitation of Sasape Marina, formerly a state-owned enterprise, highlights some of the real benefits that can result from privatization. Loans You Can Bank On 26 ADB assistance has helped the Institute of Microfinance Timor-Leste (IMfTL) become the country’s first locally owned commercial bank to provide loans to individuals and small businesses in urban and rural areas.
The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. Accounts presented here are anecdotal and do not represent comprehensive impacts of projects or programs. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this publication, ADB does not intend to make any judgments as to the legal or other status of any territory or area. ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB. Note: In this publication, “$” refers to US dollars.
PHOTO CREDITS: Cover: Kiosk owner Marquita dos Santos benefitted from ADB supported microfinance projects. Photo by Luis Ascui; Loans You Can Bank On-Photos by Luis Ascui; Network Rollout Puts a Nation in Touch-Photos of phone towers by Digicel, Peter Anjo and Lucy Bonai. Photo by Digicel; Banking the Unbanked in Papua New Guinea-Photos by Nationwide Microbank; All other photos by ADB. Asian Development Bank Director General, Pacific Department Xianbin Yao easier place business. to conduct This confirmsSolomonIslands isbecoming an from just2 years agowhenitranked106th. 74 outof183economies, ahugeimprovement business, showed Islandsranked Solomon whichmeasuresThe theeaseofdoing report, demonstrated significant businesslaw reform. being amongthetop 12countries that surveyed Indicators Report 2012,the In World Bank’s in 1–2days atthecost ofnomore than$100. After thereform, acompany may becreated company could takeaslong2months. companies. Before the reform, forming a requirements for establishingandoperating anewlaw thatsimplifiesthelegaldrafting Islands, PSDIassisted thegovernment with seven Pacific countries. For example,Solomon in helped develop moderncommercial laws in PSDI hasmany majorachievements. has It place to dobusiness. region become alessrisky, more cost-effective to businessandare toward working helpingthe development organizations, thebarriers islifting developing membercountries (DMCs)andother withthegovernments ofPacificin partnership Through theirreform thePSDIteam, activities, reform, andpublic–private partnerships. enterprise state-owned to financialservices, that focuses onbusinesslaw reform, access hubwitha team oftechnicalknowledge experts from theAustralian government, PSDIisa Established by ADBin2006withcofinancing the region. growth are spread throughout theeconomies in and need-structured, sothebenefitsofeconomic to development. PSDI’s initiatives are demand- play aninnovative role inovercoming obstacles critical to sustainedgrowth inthePacific and can grow, andcreate jobs. is Avibrantprivate sector easier for business, to theprivate conduct sector reform theirbusinessenvironments to makeit T FOREWORD helping countries inthePacific region Development Initiative(PSDI),ADBis hrough thePacific Sector Private listedIslandsas Solomon Doing Business Doing innovative, flexible, andrapid response initiative. anddevelop extend this to further partners closely withAustralia andotherdevelopment ofPSDI,and lookforward to working support International Development’s (AusAID) strong We appreciate theAustralian for Agency are tirelessly working towardpartners thisend. governments ofthePacific DMCsanddevelopment the Pacific amore business-friendly region, and countries. There isstillmuchto doto helpmake foundations for growth private sector–led intheir for counterparts theirenthusiasminhelpinglay the I would liketo thankourPacific government assistanceand infrastructure intheregion. PSDIreformsthe better through ADB-supported explain how theirlives have beenchangedfor entrepreneurial Pacific women andmenwho featuresThis booklet thestories of for localcommunities.opportunities providing employment andincome-generating based maintenance components thatare and bridges. These includelabor- projects the region whichare rehabilitating roads in projects infrastructure ADB supported additionto PSDIassistanceIn inthePacific, laws to enhance women’s businessopportunities. governments ofthePacific DMCs revise business Leste, and Vanuatu. PSDIcontinues to help existing microfinance institutionsinPNG, Timor- by expandingtheruraloutreachservices, of of PSDIhasboosted women’s access to financial formal business. The second andcurrent phase ofwomen into onpromoting theentry impact Many ofthesePSDIreforms have hadamajor saved thebusinessandwill create upto 150jobs. government in sellSasapeMarina Tulagi, which phones. Islands PSDIalsohelpedSolomon access theiraccounts through theirmobile With helpfrom thePSDI,bankclientscannow now has100,000clientswithasavings account. (PNG) hasestablishedbranchesinruralareas. It Nationwide inPapua Microbank NewGuinea
1 Foreword 2 Unbanked Banking the a successful microbank focused ontheneedsofpoor. Guinea province isoneofthousandscustomers benefitingfrom A widow andsmall-timecoffee grower in remote Papua New PAPUA NEWGUINEA t 100,000 customers and counting. Tommie Seriate, center, a 49-year-old widow and mother of four, receives her landmark account book from the staff of Nationwide Microbank in Goroka. Credit: Nationwide Microbank Banking the Unbanked in Papua New Guinea Banking the Unbanked in Papua
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Port Moresby, Papua New Guinea—It took almost “The message was loud and clear. It was simple for half a century for Tommie Seriate to open her first people at village level to open a savings account bank account. Prior to walking into a branch of with Nationwide,” she said. Nationwide Microbank in May 2011, this 49-year- old subsistence farmer from the rural Eastern Stories like Ms. Seriate’s are becoming increasingly Highlands Province of Papua New Guinea kept her common in rural Papua New Guinea. In opening earnings buried in the ashes of the fireplace where her bank account she became Nationwide’s she cooked food for her family. Saving proved 100,000th customer, a number that speaks to the difficult. A widow with four children and eight success of a project that began in 2002 to expand grandchildren, Ms. Seriate was often tempted to access to financial services in rural communities dig up the hearth to meet family needs. Then one and is now helping to generate jobs and boost day she heard a presentation given by Nationwide economic growth in some of the country’s poorest Microbank representatives in the local market. and most isolated regions. Ms. Seriate had tried in the past to open bank accounts with other commercial banks but found Nationwide Microbank (formerly Wau Microbank) their account opening process too difficult. But was established as part of the Microfinance and what she heard that day in the marketplace Employment Project, which ran for 8 years from encouraged her to try again. 2002 to 2010. The project—which was supported t Nationwide Microbank MiCash Agent operating a desk phone t Nationwide Microbank staff opening accounts at Boera Village
“The message was loud and clear. It was simple for people at village level to open a savings account with Nationwide.” – Tommie Seriate, subsistence farmer and 100,000th customer of Nationwide Microbank
with a $9.6 million ADB concessional loan to that would not have been possible without