FAO Enhances Digital Banking in Remote Rural Papua New Guinea with Solar-Powered Solutions

Wewak, Papua New Guinea – Lack of consistent electricity affects the delivery of digital banking and financial inclusion services in rural areas of Papua New Guinea. To address this dilemma in the Sepik region, the Food and Agriculture Organization of the United Nations (FAO), under the EU-STREIT PNG Programme, is supporting a key service provider in the region, Women's Micro Bank – Mama Access Points (MAPs), with portable solar power generators.

These portable solar power generators are designed to support 10 MAPs in the East and West Sepik provinces, facilitating efficient banking transactions and services for Cocoa, Vanilla, and Fisheries farmers in the region. This enhancement is expected to streamline account openings and improve the delivery of banking services and products to both farmers and agripreneurs.

These 10 MAPs in the Sepik region were established with the support of the United Nations Capital Development Fund (UNCDF) under the umbrella of the EU-STREIT PNG Programme.

“This initiative will enable Women's Micro Bank – Mama Bank to support rural farmers and communities in accessing finance to transact, deposit their money, effect payments, and access other banking products. In that process, the value chain development will take place as per the development objective of the Sepik, contributing to the national development agenda,” underscored the EU-STREIT PNG Programme Coordinator, Mr. Ali Said Yesuf, when handing over the first renewable solar-powered generator to a representative of Women's Micro Bank in the region. He added, “We wish you all the best and successful operations in remote areas not traditionally reached by mainstream financial institutions.”

The implementation of these solar-powered solutions is crucial in addressing the operational challenges faced by the MAPs during frequent blackouts, particularly in using biometric fingerprint machines and other essential electronic equipment. The unreliability of electricity in these rural areas often forces customers to travel to urban centres, incurring additional costs and security risks, especially for women and mothers.

The innovative solar generators, compact and portable, can operate independently for up to 8 hours and weigh approximately 10 kg. They are designed to be charged using sunlight, providing a sustainable and efficient energy source for these banking access points.

This initiative marks a significant stride toward bridging the gap in financial services in rural Papua New Guinea, paving the way for greater economic empowerment and inclusivity.

About the EU-STREIT PNG Programme

The EU-STREIT PNG Programme, led by FAO, is the European Union's largest grant-funded initiative in the country. It focuses on boosting sustainable and inclusive economic development in rural areas. This is achieved by enhancing economic returns and opportunities within cocoa, vanilla, and fisheries value chains. Additionally, the Programme strengthens and improves the efficiency of value chain enablers, including access to ICT and digital financial services. It also supports the development of sustainable, climate-resilient transport infrastructures and renewable energy solutions. The Programme benefits two provinces: East Sepik and West Sepik.