IFC has officially launched Private Enterprise Partnership for the Pacific, an ambitious five year plan to boost private sector growth as a means of reducing poverty levels in the Pacific.
PEP-Pacific, which replaces the old Pacific Enterprise Development Facility, is supported by the governments of Australia, New Zealand and Japan and aims to improve the business environment for small and medium-sized enterprises by increasing access to finance and stimulating private sector investment through targeted programmes. The new facility will work to improve capital flows, corporate governance, technical skills and government regulations that impact on the business environment in the region’s island nations.
Extending Scope and Impact
Speaking at the July 20 launch event at the World Bank’s Sydney office, PEP-Pacific Acting General Manager Rob Simms said the new facility would build on the successes of PEDF and extend the scope and impact of IFC’s technical assistance and advisory services in the region.
“IFC’s significantly enhanced Pacific program will allow us to advance our mission in what is arguably one of the most remote and economically challenged regions of the world,” he said. “We will adapt the lessons of IFC’s global experience and will mobilize world-class knowledge and expertise across the region”.
Earlier, following the signing of the funding agreement, Australian Foreign Minister Alexander Downer said PEP-Pacific’s mission was in line with his view that the private sector held the key to the region’s economic development.
“This initiative will promote enterprise, investment and growth by addressing the impediments to private sector development,” he said.
Building Business, Creating Jobs across the Pacific
IFC has long regarded poor access to capital as one of the greatest impediments to private sector growth in general. The problem also particularly affects the development of the Pacific region’s small, medium and micro-sized enterprises. PEDF worked closely with the region’s financial institutions in an effort to improve capital flows to these types of businesses
PEDF provided technical assistance to Papua New Guinea’s Bank South Pacific with a focus on credit appraisals. In Samoa, PEDF provided tier two capital for the National Bank of Samoa and delivered a comprehensive technical assistance package over 5 years which covered the entire spectrum of banking activity including risk management and corporate governance.
PEDF has also been active in other areas of the Pacific economy ranging from fisheries to tourism and agriculture. By the year 2000, its activities in the tourism sector had directly resulted in more than 30 successful projects; raised more than $60 million in capital and generated more than 800 sustainable jobs.
In fisheries, PEDF helped raise more than $20 million in new investment in the first ten years, money which went into new vessels and onshore processing facilities which, in turn, generated scores of new jobs. PEDF was also involved in the first private hospital in the Pacific.
Moving Forward
The PEP-Pacific rebranding brings the facility into line with the term widely used by IFC-managed technical assistance facilities around the world. In the East Asia and the Pacific region, for example, new initiatives in Aceh and the Philippines were launched as PEP-Aceh & PEP-Philippines, respectively, and the China Project Development Facility has recently been re-launched as PEP-China.
Mr. Simms said PEP-Pacific would continue to work with governments, industry groups and export oriented organisations to improve the environment for all sectors of business.
“We will focus on improving access to finance, improving the business environment in member countries, and on value addition to firms. Our programmes will be developed on the basis of explicit strategies tailored to the unique needs of each of our client countries and will feature technical assistance based on sound diagnostics,” he said.
In recent years IFC has invested in a number of projects in the region, including microfinance in Papua New Guinea, a hospital in Samoa and hotels in Fiji. PEP-Pacific will continue to facilitate access to IFC finance for commercial projects where appropriate and will also work to enhance the relationship between the region’s public and private enterprise sectors.
The launch event was attended by representatives of development agencies, the business community and the media, along with senior government figures including Samoan High Commissioner His Excellency Leiataua Dr. Kilifoti S. Eteuati, Fijian Consul General Mr. Ratu Meli S. Malani, Solomon Islands Consulate General, John Mitchell, the New Zealand Trade Commissioner Mr. Tim Green and The Pacific Islands Trade and Investment Commission Trade Commissioner, Ms. Aivu Tauvasa.
For further information contact:
Cathy St. Ledger
Sydney
Tel: +61 2 92237773
Email: cledger@ifc.org
Andrew Mak
Hong Kong
Tel: +852 2509 8110
Email: amak@ifc.org
