UNCDF in Papua New Guinea
Asia and the Pacific Region
Concessional loans
Guarantees
Investment grants
Our work
The United Nations Capital Development Fund (UNCDF) has worked in Papua New Guinea since 2009 to catalyse inclusive and sustainable development, particularly in rural and underserved provinces. In partnership with the Bank of Papua New Guinea (BPNG), the Centre of Excellence for Financial Inclusion (CEFI), and financial service providers, UNCDF has supported policy and regulatory reforms, digital payments, agent network expansion, and the development of inclusive financial products for households, MSMEs, women, youth, and key value-chain actors.
UNCDF has also contributed to successive National Financial Inclusion Strategies by translating policy goals into bankable, last-mile delivery, supporting agent and mobile banking expansion, women-centred inclusion pathways, and stronger market-conduct safeguards. It helped define gender-disaggregated indicators and align providers and regulators around practical roadmaps that link literacy, agent liquidity, and product design to measurable usage.
Complementing this, UNCDF supported a review of the policy and regulatory framework and helped CEFI develop the national Financial Inclusion Dashboard, providing real-time data to track NFIS progress, identify gaps, guide regulatory adjustments, and coordinate provider actions.
Enhancing climate risk preparedness through inclusive insurance solutions
To address PNG’s growing vulnerability to natural hazards such as earthquakes, drought, cyclones, and excess rainfall, UNCDF has introduced an innovative parametric insurance product for underserved populations. This meso-level insurance is designed in collaboration with local financial institutions and reinsurers and initially targets customers of a women-focused microfinance institution.
The insurance solution ensures swift payouts following trigger events, enabling low-income households and small businesses to recover faster and mitigate post-disaster financial strain. UNCDF’s efforts are complemented by awareness campaigns and capacity building in insurance literacy and disaster preparedness.
Building financial resilience through digital innovation for rural communities
Through two flagship projects, EU-STREIT and the Pacific Digital Economies Programme, UNCDF is advancing inclusive digital transformation in Papua New Guinea by promoting financial and digital literacy, strengthening regulatory frameworks, and supporting the digitalization of financial services. These efforts are designed to help underserved populations, particularly women and youth, engage confidently with digital platforms, reducing inequality in financial access and enabling greater economic participation.
To date, these initiatives have delivered significant results across the country:
- 305 new financial service access points opened across 10 districts
- 255 mobile-money merchants activated
- 127,942 new financial service accounts opened, of which 67,809 (53%) are women
- 126,378 average transactions per month, equivalent to 1.25 transactions per active customer
- Supported the Centre of Excellence for Financial Inclusion (CEFI) in developing the National Strategy for Financial Inclusion (2023–2027)
- Supported Centre of Excellence for Financial Inclusion (CEFI) in developing a centralized Financial Inclusion Dashboard that aggregates data across the entire banking system in PNG
- Conducted four multi-stakeholder policy dialogue sessions in Port Moresby, Wewak and Vanimo with financial service providers, mobile network operators, and government agencies to facilitate improvement of network connectivity and financial inclusion strengthening
By partnering with financial regulators and ecosystem actors, UNCDF is contributing to the development of a more inclusive, efficient, and secure digital economy, aligned with the country’s national development strategies.
Supporting ocean-based livelihoods and the Blue Economy
In 2025, UNCDF launched a $1 million Blue Economy Guarantee in partnership with UNDP and GFCR, implemented through Women’s Micro Bank Limited (WMBL), also known as Mama Bank. The guarantee is designed to unlock credit for eligible, sustainable ocean-based MSMEs that have historically been excluded from formal finance.
The portfolio guarantee provides 70 percent risk coverage and includes a dedicated tranche for women-owned enterprises. With this facility in place, WMBL is expected, based on current projections, to issue up to PGK 5.7 million (approximately $1.43 million in loans to reef-positive MSMEs operating in regions such as Kimbe Bay and Milne Bay. These loans will support businesses involved in aquaculture, seaweed farming, marine tourism, cold storage, plastic recycling, and other activities that reduce pressure on reef ecosystems while advancing local economic opportunities.
Unlocking climate and nature-aligned investment for SMEs
In 2025, UNCDF launched a new initiative to accelerate inclusive and climate-smart economic growth in PNG and across the Pacific. With initial capitalization of $8.9 million, UNCDF is deploying investment grants and technical assistance to incubate SMEs, improve institutional capacity, and enhance the enabling environment for private sector investment.
This initiative aims to unlock an additional $20 million in public and private investments by mobilizing blended finance solutions. By targeting job creation for women and youth, and aligning with national net-zero ambitions, the initiative advances both economic inclusion and climate resilience across PNG’s diverse regions.
Latest news and stories
Our partners
UNCDF’s work in Papua New Guinea is made possible thanks to collaboration with the European Union, the Government of Papua New Guinea, Bank of Papua New Guinea, the Government of Australia, the Government of New Zealand, Local Financial institutions such as Womens’ Microbank Limite, Nationwide Microbank Limited, Digicel Financial services Limited, Mobile Network operators, Center of Excellence for Financial Inclusion, local cooperatives and civil society organizations, reef-positive entrepreneurs and rural MSMEs and United Nations system Agencies.
Documents
This section brings together key documents related to UNCDF’s work in the country. It includes a curated selection of publications, papers, and reports that reflect the scope of engagement at country level, from programme design to implementation and outcomes.
These documents offer additional context on how initiatives are developed and delivered, and how partnerships contribute to advancing national priorities. They are intended to support transparency, facilitate knowledge sharing and serve as a practical resource for partners, stakeholders and others seeking a deeper understanding of UNCDF’s work.
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Contact us
For inquiries about UNCDF’s work in Papua New Guinea, including partnerships, investment opportunities, or ongoing initiatives, please contact asiapacific.region@uncdf.org.
