Papua New Guinea, with a population more than double the rest of the Pacific islands combined, is a priority country for IFC. IFC's program focuses on building financial infrastructure, enabling the business environment, and growing rural enterprises and tourism, while integrating investment and advisory services wherever possible.
IFC has taken equity in PNG's first commercial microfinance bank and is delivering associated advisory services, and has worked with the country's largest bank, Bank South Pacific to improve its credit scoring and trade finance skills. IFC is also working with the central bank and local financial institutions towards establishment of a credit bureau and to build awareness of mobile phone banking technologies and enabling regulation. We have also undertaken extensive survey work to identify barriers to formalization, and IFC's credit scoring initiative with the country’s Bank South Pacific led to an increase in the loan portfolio, reduced transaction costs, reduced minimum loan thresholds, and increased geographic reach.
IFC's other investments in PNG comprise a $40 million loan to mobile telephony operator Digicel and, more recently, the PNG component of a $55 million, six-county facility for agribusiness operator Ecom to build its coffee supply chain.
