4 September 2025 | New York

The Global Fund for Coral Reefs (GFCR) and the United Nations Capital Development Fund (UNCDF), in collaboration with the United Nations Development Programme (UNDP), have announced a USD 1 million portfolio guarantee facility to support sustainable, coral reef-positive development in Papua New Guinea’s blue economy. Implemented with Women’s Micro Bank Limited (WMBL) and structured by UNCDF, the facility will expand access to affordable finance for an underserved market while delivering benefits for coral reef ecosystems, coastal communities, and local livelihoods.

Papua New Guinea sits at the heart of the Coral Triangle, home to 76% of the world’s known coral species. While its reefs have shown remarkable resilience to climate change, they remain vulnerable to local pressures such as destructive fishing, coastal degradation, and pollution—challenges exacerbated by poverty and limited economic alternatives in coastal areas.

The UNCDF portfolio guarantee facility enables WMBL to extend up to PGK 5.7 million (USD 1.43 million) in additional loans to reef-positive businesses. Backed by the GFCR, the 70% risk coverage provided by the guarantee de-risks lending to high-potential, undercapitalized enterprises—particularly those led by women. These enterprises are strategically supported to address key drivers of reef degradation. This includes enabling fishers to transition from overharvesting in near-shore coral ecosystems to more sustainable offshore practices. By promoting plastic recovery and recycling, it also targets pollution at multiple points along the pollution lifecycle. Additionally, support for seaweed farming and mangrove restoration will contribute to carbon sequestration and shoreline stabilization. Adopting a holistic approach, the initiative aims to strengthen the climate resilience of reef-adjacent communities by advancing a diverse portfolio of sustainable coastal economic sectors.

“This portfolio guarantee facility exemplifies UNCDF’s catalytic role in absorbing early-stage risk to unlock both domestic and international private capital for Papua New Guinea’s coastal economies ” said Pradeep Kurukulasuriya, Executive Secretary of UNCDF. “Through a multidimensional approach that combines blended finance, gender-responsive lending, and targeted technical assistance, the guarantee facility will strengthen underserved enterprises while easing pressure on fragile marine ecosystems. UNCDF is proud to support innovative financing solutions that generate lasting value for people, nature, and local economies.”

In addition to the guarantee, GFCR is enhancing WMBL’s institutional capacity, supporting the development of tailored financial products, and providing support for financial literacy and business development services to MSMEs. Supported activities will also include training for bank staff on assessing reef-positive business models, designing blue economy loan products, and mentoring local entrepreneurs in sustainable business practices. This holistic design ensures both the financial institution and its borrowers are equipped to thrive in the blue economy.

"We are truly honoured to receive the Financial guarantee from UNCDF in support of the reef-positive blue economy in Papua New Guinea”, said Gunanidhi Das, CEO, Women’s Micro Bank (Mama Bank). “This milestone reinforces our commitment to empowering coastal women and communities with inclusive, sustainable financial solutions. It represents more than just a financial instrument—it’s a catalyst for protecting our marine ecosystems, fostering community-driven innovation, and helping small businesses grow in harmony with nature.”

By bridging the gap between the domestic financial market and conservation, the Papua New Guinea guarantee demonstrates how de-risking instruments can unlock financing with positive social, environmental, and economic impact.

The model is expected to inform replication across GFCR portfolio countries, including Indonesia, Kenya, Fiji, and the Philippines.The guarantee and relayed activities are part of the broader GFCR-supported Gutpela Solwara, Gutpela Bisnis (Good Oceans, Good Business) programme, a joint initiative between UNDP and UNCDF, and will de-risk lending to Micro, Small, and Medium Enterprises (MSMEs) in sectors such as sustainable fisheries, aquaculture, marine ecotourism, seaweed farming, and coastal plastic recycling—particularly in climate-resilient reef areas including Kimbe Bay, West New Britain Province and Alotau, and Milne Bay Province. Implemented in partnership with Papua New Guinea’s Conservation and Environment Protection Authority (CEPA), the programme supports women-led blue enterprises by establishing a Blue Economy Enterprise Incubation Facility within the Biodiversity and Climate Fund, leveraging local skills, and unlocking domestic and international private capital through viable reef-first enterprise models.

About UNCDF:

United Nations Capital Development Fund (UNCDF) mobilizes and catalyses an increase in capital flows for impactful investments in high-risk markets, especially in Least Developed Countries, Small Island Developing States and countries in special situations. By crowding in capital through the deployment of risk-absorbing financial instruments, mechanisms and structuring advisory, UNCDF contributes to job creation and sustained economic growth in more than 70 countries.

In partnership with UN entities and development partners, UNCDF operates with speed and agility to deliver scalable, blended finance solutions to drive systemic change and pave the way for commercial finance and scale up by development finance institutions and multilateral development banks.
Learn more at uncdf.org or follow @UNCDF.

About GFCR:

As an implementation vehicle for the Global Biodiversity Framework (GBF) and Sustainable Development Goal 14, Life Below Water, the Global Fund for Coral Reefs (GFCR) Coalition is enhancing the resilience of coastal reef ecosystems, communities and economies by unlocking new public and private resources that accelerate sustainable businesses and financial solutions. Hosting both a UN Fund and an Equity Fund, the GFCR resilience-focused portfolio includes market-based solutions spanning 23 countries, including waste treatment and recycling, coral reef insurance, sustainable aquaculture and agriculture, ecotourism, blue carbon credits, and mechanisms for sustainable Marine Protected Area (MPAs) finance. The GFCR Coalition is a public-private partnership driven by more than 60 Member States, UN Agencies, financial institutions, philanthropies, impact investors, and conservation organisations.

About Women’s Micro Bank Limited:

Women’s Micro Bank Limited (WMBL) is a licensed Micro Bank regulated by Bank of PNG. WMBL formerly known as PNG Women in Business Micro finance Institute limited was established in 2010. The Bank received its banking business license from Bank of PNG in May 2014. The bank is the (5th) deposit taking licensed micro bank in Papua New Guinea the world and more importantly the first women’s micro bank in PNG and the Pacific region. Within its first few months of operations, the bank was selected as one of the best 50 companies for women among APEC Countries. The bank is a subsidiary of PNG Women in Business which sprang from PNG Women in Business Foundation formerly known as City Mother‘s Business Foundation, established in 2006.