Support SMEs, microfinance: Naiyaga

November 12, 2009 07:35:38 PM

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The chief advisor to the governor of the Reserve Bank of Fiji, Inia Naiyaga, is throwing his weight behind the development of microfinance and small and medium sized businesses. 

In an interview with Fijlive, Naiyaga said achieving a vibrant microfinance and SME sector was the best way to spread wealth around to reach ordinary people. 

“These Small and Micro enterprises and also the financing of these projects are very important because they are catering for a group of people that normally don’t have access to the kind of financing that you and I have, like banks.  So this sector is serving a very useful purpose and the results have been so far, we’ve seen the improvement in the standards and livelihood of people,” Naiyaga said.

“I think the more support and recognition we give to these types of small and micro businesses, the more it will contribute to the economy of Fiji, because it’s widespread, which means that the wealth can be shared to the ordinary people not only to a few like in the big businessmen in the cities and towns. So to me it’s going to play a very important role as we move into the future,” he added.
 
Last week, the Reserve Bank met with stakeholders from the SME, microfinance and financial sectors in a public symposium where it hoped to gauge how best the two sectors could be developed. 

Specifically, the RBF wanted an indication of the progress made by commercial banks as they were required in April to put in place microfinance facilities by January next year. 

“We are still working with them on that,” Naiyaga said.

At last week’s workshop, RBF governor Sada Reddy stressed the importance of getting the poor and those considered unbankable to have access to savings and credit facilities, as this would ultimately help in reducing poverty.

Reddy said commercial banks played an influential role in addressing this through financial inclusion initiatives.

A crucial outcome of the workshop would be an Action Plan to guide the development of the sector, he said.