Reports & Publications
We keep you informed of what we do.
HAVE ACCESS TO OUR
DOCUMENTS
HERE AND Be Informed
SMEC 2024 ANNUAL PERFORMANCE REPORT
Throughout the year, SME Corporation continued to deliver on its commitment to empowering MSMEs through strategic programs and initiatives. Below are some notable highlights of FY2024: We implemented our flagship SIYB training and capacity-building program, reaching MSMEs across all regions and provinces. These trainings focused on enhancing entrepreneurial skills,
financial literacy, and business management, equipping MSMEs with the basic tools they need to thrive in a competitive marketplace. In FY 2024 over 50 trainings were delivered in 16 provinces and reached 2517 of participants. SME Corporation made significant strides in advancing its physical business incubation projects, which aim to provide dedicated spaces and resources to nurture MSME growth and innovation. Key developments in this area include: The Womens Enterprise Development Centre (WEDC) completed and launched in September 2024, stands as a iconic first-of-its-kind facility dedicated to empowering women entrepreneurs. It provides state-of-the-art training facilities and incubation spaces where women can develop their skills, refine their business ideas, and bring their products to market. Upon completing their training, women entrepreneurs can use the incubation spaces to showcase and sell their products. This facility it is schedule to commence operations in the second quarter in FY2025.
SMEC 2023 ANNUAL PERFORMANCE REPORT
The Annual Performance Report of SME Corporation for the year ending 2023 reflects with much satisfaction on the progress we made and the key milestones we achieved in terms of our implementation of the sector development programs and projects during the reporting period. The Board endorsed four key projects and programs of SME Corporation valuing K13 million for FY2023.
These programs include our ongoing nationwide Entrepreneurial Capacity Building programs, Regional Business Incubation Centres development, Micro-Credit Guarantee program, and the MSME Sector Policy and legislative reform. These initiatives are articulated in the SME Policy 2016, and are pivoted to drive entrepreneurship development across PNG for positive socio-economic transformation. Our budgetary submissions for our programs were not funded except our BIC project under the 2023 National Budget. Despite, the reduced funding, SME Corporation delivered the bulk of its planned programs and projects for FY2023 through strategic and prudent financial management. Our financial operations for FY 2023 was also largely underpinned by our previous years’ savings of our recurrent and development funds. We have achieved convergence of our functions and operations with the sector development priorities and targets under the Medium-Term Development Plan IV. Our Entrepreneurial Capacity Building continued to represent one of our signature enterprises development programs. In keeping with the evolving needs and demands of the sector, we have for the first time adopted and rolled out an integrated MSME training and Business start-up and acceleration programs across the country. This new approach saw the business literary trainings, business formalisations, subsidization of the costs of the formalisation, credit access facilitation and creation of MSME accounts, all embed under one program. This approach had seen valuable contributions by us to the sector targets and priorities under MTDP IV. Among these achievements, SME Corporation proudly trained over 3000 existing and aspiring MSMEs for entrepreneurial development, marking the highest participation rate since our establishment. Significantly, over 50% of participants were women, reflecting our commitment to gender inclusivity and empowerment. SME Corporation also achieved significant progress across other programs as well: The Regional Business Incubation Centre (BIC) development and the Micro-credit Guarantees Scheme for MSMEs, both have gained significant traction and momentum as we transition into 2024. Two of our key BIC projects for the New Guinea Islands and Southern regions have advanced into the construction phase. Our third BIC project for the Highlands region was ceremoniously launched in September 2023. The implementation of our credit guarantee programs via partnership with micro-banks, has yielded commendable results. The impressive lending ratio of 96 percent and a default rate of little over 5%, demonstrated the joint efforts of us and our partner micro financial institutions in ensuring prudent risk management and sustainability of our interventions going forward. In adherence to the statutory requirements under the Public Finance Management Act (PFMA), the Board directed the establishment of the SME Corporation Audit Committee SME Corporation Performance Report FY 2023 | 7 in 2022. While initial attempts to convene the inaugural meeting in 2023 faced challenges, we secured confirmation for the committee’s inaugural meeting, scheduled for February 2024. In 2023, we maintained consistent progress on our policy and legislative reform efforts. We completed the alignment of our sector policy and plan with the Go-PNG’s Medium-Term Planning Framework and advanced our efforts in developing a versatile sector-specific legislative framework. The legislative and policy instruments are progressing well through the process. Throughout 2023, the Board engaged in numerous high-level dialogues with our stakeholders and development partners on MSME development issues. These engagements provided valuable opportunities to project SME Corporation’s brand and utility to stakeholders and the public. Our key efforts were centred on practical exchanges of knowledge and experiences, and to explore collaborative avenues for advancing MSME development. Looking forward, the Board remains committed to aligning SME Corporation with the development vision of the Marape-Rosso Government. Our strategic focus is on enhancing SME Corporation’s responsiveness to the evolving business landscape while ensuring relevance and accessibility of its programs to those we serve. Through ongoing reforms, the Board aims to position SME Corporation as a catalyst for MSME development in PNG
SMEC ANNUAL 2022 PERFORMANCE REPORT
I have the pleasure of reporting on the operations of SME Corporation during the 2022 fiscal year. The reporting year was another challenging year. As an organisation, we had to navigate through with success. This success was driven by great people who have the passion to offer their service unselfishly to the organisation [and the country] for which I must
 acknowledge and express my gratitude: I thank the Board for providing the strategic foresight; the Senior Management Committee for supporting me in managing the daily operations and affairs of SME Corporation; and the staff for translating the Board and Management’s vision and directions into particular actions and outcomes at the operational level. Under our ongoing institutional reform, we introduced a number of governance, administrative and operational policies to improve the overall efficiency and performance of our organisation and staff. Key amongst them were the development of the Staff Learning and Development Plan, HR Policy and Procedure Manual and the Staff Salary Packaging Policy. We also established the Staff Welfare Scheme to offer additional reward within legal parameters so that staff could access affordable funds to finance short-term obligations. We invested heavily in our ICT infrastructure and facilities. Under the sector policy and legislative reform, we successfully concluded the review of the SME Policy 2016, SME Master Plan and SME Corporation Act 2014 following the lengthy consultive process, which began in 2021. The review culminated in the development of the MSME Policy 2022, MSME MTDP I and SME Development Authority Bill. The MSME Policy and MSME MTDP I were officially endorsed by the Government in 2022. We submitted the proposed Bill and its Drafting Instructions to the Office of the State Solicitor for Certificate of Necessity, and are actively collaborating with their legal team to fix certain issues in the most expeditious manner. For the very first time in many years, we developed a five-year Corporate Plan for SME Corporation, which will be launched with the MSME Policy and MSME MTDP I in 2023. Under our MSME development programs and projects, construction of the Kimbe Business Incubation Centre project was still progressing since its commencement in 2021,despite hurdles thatare delaying itsprogress. The Board and Management were taking steps to get the progress back on track and see the project being successfully completed and commissionedin 2023.We progressed works on other BIC projects, and conductedthe SIYB trainings acrossPNG forover 3000 participants in order to address the business skills gap and drive them into businesses. We again endeavoured to support ourtrainees accessing credits from the micro financial institutions through our micro credit guarantee scheme to start businesses after having obtained the trainings. Our operating project facilities were performing well amidst challenges in providing their intended services to MSMEs and prospective MSMEs. We established a number of external stakeholders’ partnership arrangements with a number of key MSME development partners and participated in numerous policy development dialogues, consultations and workshops in our effort to ensure our sectoral interests are aligned in other sectoral or national policies, plans and legislations. Our active stakeholders’ engagements are key to strengthening our relations and joint collaboration on areas of our shared interests.
SMEC 2021 ANNUAL PERFORMANCE REPORT
In 2021, the SME Corporation did not receive any PIP funding from the National Government under the 2021 National Budget Appropriation. SME Corporation received external grant of K3 Million out of the K20 million administration component of the Gov-PNG’s K200 Million allocations for Agriculture and Small and Medium Enterprises Concessional Loan from Department of Commerce and Industry, the administrator of the funds.
 SME Corporation was allocated Operational Grants of K6, 938, 000, which represented a slight increase of 5 percent as compared to the previous year’s allocation. Despite all these issues, SME Corporation achieved significant milestones in the effectual delivery of the planned programs and activities for the year. The major Policy reform initiatives in 2021 included review of the SME Policy 2016 and Master plan 2016- 2030, and drafting of the new MSME Policy 2022 and MSME Medium Term Development Plan 2022- 2026, which are in the final stage for submission to NEC for endorsement. Review of the SME Corporation Act 2014 was also completed with the draft MSME Development Authority Bill 2021 is now undergoing the final leg of review and vetting process. Other key activities implemented during the year in review included the commencement of construction of Kimbe Business Incubation project, progressing redevelopment of Small Industries Centre and, redevelopment of Garment and Textile Training Centre under the BIC project. Message by Managing Director MSME entrepreneurship training is one of the core functions of the Corporation. A total of 209 Provincial and District Business Development Officers were trained nationwide to provide entrepreneurship training and other MSME development services for citizens at the 6,112 wards nationwide. Establishment of partnership agreements with key stakeholders for collaborative engagements in the development of the MSME sector is ongoing. Strategic partnership with key stakeholder is vital to strengthen proper alignment, integration and, coordination in implementation of the SME Policy 2016 and SME Master Plan 2016-2030 including sectoral policy alignments at the national, provincial, district, LLG, and ward levels. SME Corporation collaborated with key stakeholder partners to jointly delivering various SME development projects, programs and activities across PNG. The particular areas of engagements are covered in the body of the report. Whilst the board and management acknowledge that there is legislative, policy, functional and operational areas for improvement, every effort will be made to improve on our weaknesses and build on our strengths to continuously research and design creative and innovative projects and programs to “Grow the MSME Sector to Grow PN
SMEC 2020 ANNUAL PERFOMANCE REPORT
We initiated the Policy and legislative reform for the sector, on behalf of the Ministry of Commerce and Industry, when the SME Policy 2016 reached its implementation lifespan in 2020. As part of the wholeof-stakeholder’s approach to the review process, we conducted four (4) regional stakeholders’ consultative workshops across the four regions and one national stakeholder consultative workshop in the nation’s capital.
The workshops drew participations of more than 500 persons representing various stakeholders who made significant contributions to the review. The inputs will prudently shape the review on both the SME Policy and the SME Corporation Act 2014. We also delivered a total of 23 entrepreneurial development trainings across PNG in 2020, of which 1 was Training of Trainers and 21 SIYB to a total of 219 beneficiaries including both the existing and potential entrepreneurs fairly across the four regions. Of the total beneficiaries, 77 percent are female. Furthermore, we carried on works for the BIC projects including the BIC project in WNB province under partnership with the WNB Provincial Administration, as well as two BIC projects in Port Moresby. The former is in the construction phase whereas the two latter projects are in the design phase. We strictly managed the K20 million funding allocated for development of four regional BIC projects – K12 million in 2018 and K8 million in 2019 budgets to ensure successful delivery of these projects. Through swift reorganisation and institution of internal control measures, we have turned the operational and financial performances of our revenue generating projects around. In spite of the economic downturn and sluggish demand, our 2 projects including SIC and GTTC generated a total of almost K800 000, which represented 100 percent increase from the 2019’s revenues. As part of organisational transformation drive under my leadership, we have introduced a number of management process and procedures including a compulsory monthly senior management meeting, Project Steering Committee to promote high probity and transparency in all major procurements; and a number of operational policies. We revived the Corporation from a less active to a more active entity guided by formal internal policies and procedures, in addition to the broader governance frameworks. We made effective inputs to various sectoral initiatives of other sectoral agencies through participations in national committees and various economic sector groupings and collaborated with some of which in delivering various SME development projects, programs and activities across PNG. As an only mandated MSME development Government agency, the Management of SME Corporation is committed to supporting the Board in delivering on the Marape-Basil Government’s vision and priority on SME development in PNG in 2021 and beyond
SMEC BIC INVESTMENT PROFILE
Small and Medium Enterprises Corporation is a government agency in Papua New Guinea (PNG), tasked with implementing the PNG SME Policy 2016 and Master Plan 2016-2030. SME Corporation aims to foster the growth and prosperity of the SME sector in PNG through strategic programs and projects. SME Corporation operates under the Ministry of Commerce and Industry and is mandated to coordinate with stakeholders to implement SME policies. With a focus
 on socio-economic development, SME Corporation endeavours to uplift communities and drive economic growth through MSME development initiatives. SME Corporation is empowered in its establishing Act to pursue investments and potential partnerships to deliver its mandate of serving the MSME sector through its respective programs and projects. Hence this investment proposal.
SWEET POTATO INVESTMENT PROFILE
This investment opportunity is part of an integrated Regional Business Incubation hub of Gov-PNG for the PNG’s Highlands region. Investment in this project will be the pioneer agro processing industry that will provide an anchor for MSMEs through the supply and value chain creations.
 The project will see absorption of raw sweet potatoes that are organically grown all year round by the farmers in mass volume into processing into sweet potato starch and other food-based products. It is basically designed by Gov-PNG to stimulate growth and development of MSMEs in the Highlands region, and contribute to socio-economic transformations of the citizens in the Highlands region. The Project is being initiated by the Ministry of Commerce and Industry through SME Corporation in partnership with Jiwaka Provincial Government, a second-tier government of PNG. Although, the overall Regional Business Incubation Hub project has a development focus, the investment in the sweet potato processing project purely has a commercial orientation. The Gov-PNG aims to create supply and value chain opportunities for MSMEs exiting from the regional incubation hub to tap into broad supply and value chain opportunities created by this Project. To assure confidence to investors, Gov-PNG is directly involving in the initial phase of the project through the budget intervention, geared for costs and risk sharing with the investors. The Gov-PNG will continue to support the project towards its full development, commissioning, and operation. We have successfully completed the pre-development works. The development phase is progressing well with the designs to be completed soon for immediate construction of a factory building. We invite a FDI to partner with us by contributing capital for completion and operation, technology, managerial inputs, and performing the role of operating partner, while us the investing partners. SME Corporation will continue making efforts to secure the required support including fiscal and tax incentives, statutory permits and approvals, and entry of key personnels and materials and supplies. We assure an interested FDI greater success and reward from its investments in this project
Memorandum of Understanding
Between West New Britian Provincial Government and SME Corporation for the Joint Commissioning and Management of NGI Business Incubation Centre in Kimbe WNP.
Momorandum of Understanding
Between SME Corporation and Save the Children to develop youth entrepreneuship development programs to encourage and support youth venture into MSME sector
