K50m to fight poverty

THE Australian government has set aside K50 million to fund incentives created by Papua New Guinean businesses to minimising poverty in the country.
The Australian government feels that the role of the private sector to alleviate poverty in the country should not be undersold and that the private sector can also relieve the government by providing much needed investment.
Consequently, the country’s major donor last Friday launched the Enterprise Challenge Fund (ECF) in Port Moresby in a bid to eradicate poverty.
Australian High Commissioner to PNG Chris Moraitis said it is only proper that the ECF is aimed to reduce poverty by involving and providing benefits that will benefit people.
“Through open competition, Australian Government-funded grants ranging from K245, 000 to over K3.6 million will be awarded to business projects which directly tackle the challenge of broad-based economic growth - the type of growth which lifts people out of poverty,” said Mr Moraitis.
“ The role of the private sector in poverty reduction should never be undersold. The private sector is a key driver of growth in all countries. It generates wealth through profit, creates jobs and pay taxes which pay for the provision of public services. The private sector can also reduce the burden on governments by providing much needed investment in infrastructure. A strong and profitable private sector underpins the development of a vibrant economy and a stable society,” Mr Moraitis said.
The PNG Government will play a monitoring and oversight role in the ECF, tracking its development impact in PNG and ensuring it is in line with objectives of the MTDS.
Australia will provide over K50 million over the next six years to projects in PNG, Fiji, Indonesia, the Philippines and other countries in the Asia-Pacific region.
Funds will be allocated across the region on a competitive basis, according to the merits of the specific proposals.
But as with any partnership there will need to be commitment from all parties. At least 50 per cent of the project costs must be met by the partner business, and all projects must be commercially self-sustaining within three years.
“This is a great opportunity for the PNG private sector and I look forward to hearing about the innovative and professional proposals put forward for funding,” said Mr Moraitis.