Stimulating investment in agri-food value chains and business development in Papua New Guinea – second call for applications for the STREIT Innovation Fund open

Wewak, Papua New Guinea – The Food and Agriculture Organization of the United Nations (FAO), under the EU-STREIT PNG Programme, is inviting applications for the STREIT Innovation Fund. Innovation Fund grants aim to support local MSMEs and entrepreneurs and to stimulate investments in cocoa, vanilla and fisheries value chains in the Sepik region of Papua New Guinea.  

Explaining the objective of the support to the participants during an information session in Maprik, East Sepik Province, Programme Coordinator for the EU-funded STREIT Programme in Papua New Guinea, Mr. Ali Said Yesuf asserted: “Our objective is to support your community to make a better living and more importantly to earn better in your engagement in Cocoa, Vanilla or Fisheries so we will accept all reasonable proposals.”

The call for business proposals opened on 20 June and will end on 20 July 2023. Applications will be accepted via email only to [email protected]. 

The STREIT Innovation Fund will channel financial support (in-kind) to local micro, small and medium-sized enterprises (MSMEs), registered cooperatives, business groups, as well as registered Youth and Women Groups which are engaged in the cocoa, vanilla and fisheries value chains in the West and East Sepik provinces. PNG-owned and –based businesses which intend to invest in the Sepik Region are also eligible to apply.

Financed by the European Union, the support from the STREIT Innovation Fund ranges between PGK 35,000 and PGK 1 million and will be provided in-kind (no cash) supports in the forms of provision of services, training, equipment and technology, according to Dr Pavel Burian, Deputy Programme Coordinator of the EU-STREIT PNG Programme who presented about the Innovation Fund at the recent information sessions held in the two provinces. He reiterated that the support will not come in any financial (monetary) contribution, such as a loan or a grant.

He added: “This support will be limited to 70% of the total investment costs of a business proposal (stated in the application) where the applicant must mobilise at least 30% of the total amount of the required investment in cash or in-kind.” Furthermore, Ms Ayurzana Puntsagdavaa, Enterprise Development and Value Chains Officer of the EU-STREIT PNG Programme, highlighted that “Successful applicants may receive technical support from the Programme in implementing the business plan or proposal. 

Focused on Empowering Women and Youths

The Deputy Coordinator also explained that: “For business proposals targeting and involving women and youth, a higher percentage of the Innovation Fund support will be considered and this is to ensure and promote their participation and receiving benefits in line with the Programme’s approach.”

During the information sessions, the participants were informed that an Assessment and Review Committee (ARC) comprising representatives from the European Union Delegation to Papua New Guinea, the Department of Agriculture and Livestock, provincial authorities, the EU-STREIT PNG Programme’s Team and invited technical officers from relevant government agencies in the two provinces that formed during the first call will review business proposals/applications.

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  To know the eligibility criteria as well as how to apply and get access to the relevant documents, including the application form, click here: https://drive.google.com/drive/folders/1hOHIJoir6HPq7oYV9i6Jbqth9-7Rt4xA?usp=sharing 

Outcome of First Call for Proposals

The first call for the Innovation Fund in 2022 attracted 75 business proposals (60 ESP, 15 WSP), of which 39 applied to finance investments along the cocoa value chain. Of 75 business proposals, 29 applicants were successful in securing support from the Innovation Fund. The main reasons for rejected applications were that the applications were not submitted on time, have no valid IPA license and some applications were not aligned with the aims and objectives of the EU-STREIT PNG Programme or some proposals were considered as an unviable business cases.

The EU-STREIT PNG Programme, being implemented as a UN Joint Programme (FAO as the leading agency, and ILO, ITU, UNCDF and UNDP as partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. The Programme aims to help improve the lives of the people from East and West Sepik provinces, by focusing on increasing sustainable and inclusive economic development of rural areas through improved economic returns and opportunities from cocoa, vanilla and fishery value chains while strengthening and improving the efficiency of value chain enablers, including the business environment, and supporting sustainable, climate-resilient transport and energy infrastructure.