Financing Growth

We are working to increase business access to finance, as well as access to basic financial services for business and individuals across the Pacific.

Business access to credit is critical to private sector growth. Without finance, businesses struggle to grow, meaning economic growth is slowed, jobs are not created, tax revenue does not grow, and standards of living are not raised.

Business and households in the Pacific continue to experience high levels of financial exclusion despite the prevalence of excess liquidity in many Pacific financial systems and the increased availability of savings products.

There is a strong link between access to finance and business growth, and, in turn, growth in employment and incomes. This is why PSDI works to alleviate the constraints Pacific businesses face in obtaining finance.

To address these constraints, PSDI’s financing growth work area focuses on:

  • supporting the commercial transformation of government-owned banks through implementing policies and processes to support commercial lending, development of strategic plans, and clarification of the role of state-owned banks within wider banking systems;
  • introducing financing products more suited to the Pacific, such as lending products where the borrower can use movable assets rather than land as collateral, and new capital raising platforms, such as equity crowd funding and peer-to-peer lending;
  • strengthening the capability of retirement funds to finance long-term domestic investment through the development of investment management frameworks and other policies and processes, which protects both members’ interests and the fund’s financial sustainability;
  • strengthening the financial sector’s institutional underpinnings by supporting the development of robust policies and associated legal and regulatory frameworks—a common thread through all PSDI’s work; and
  • building awareness of key policy issues through advocacy and analytical work.

Financing Growth and COVID-19

For more information on PSDI's Financing Growth focus area and COVID-19, click here. 

Financing Growth at a glance

333% average increase

in the number of security interests registered after movable asset financing frameworks established in 9 countries

Faster loan approvals

From 28 days pre-reform to 1 day post-reform in Solomon Islands, for example

New lending products

developed for Tonga’s vanilla industry and PNG’s cocoa farmers, with more in development elsewhere

Gender disaggregated data

on secured loans now being collected in 7 countries.

Commercializing government banks

Support for strengthened foundations and commercial transformation of state-owned banks provided in 6 countries

Alternative capital raising

Facilitating development of platforms for peer-to-peer financing and equity crowdfunding
Latest News
20 July 2022
PNG Government and ADB's PSDI sign MoU to support PNG Securities Commission on capital market development

PSDI and the Securities Commission of Papua New Guinea (SCPNG) have signed a Memorandum of Understanding (MoU) to foster capital market development and improve inclusive access to finance for PNG businesses.

read more
16 December 2021
Solomon Finance ready to operate in 2022

THE ISLAND SUN: Solomon Finance Limited, a credit institution owned by Solomon Islands National Provident Fund (SINPF) and supported by PSDI, is expected to commence its lending operation in 2022.

read more
15 December 2021
National Provident Fund's bank granted license

SOLOMON STAR NEWS: The Solomon Islands National Provident Fund-owned and PSDI-supported Solomon Finance Limited (SFL) has been granted a credit license from the Central Bank of Solomon Islands.

read more
14 December 2021
Solomon Finance Granted Credit License by CBSI

SOLOMON TIMES: A banking license has been granted to the PSDI-supported Solomon Finance Limited (SFL) to conduct banking business as a credit institution.

read more
Key Publications
PSDI Annual Progress Report FY2019–2020
PSDI Annual Progress Report FY2019–2020
This report gives an overview of PSDI activities from July 2019 to June 2020.
Pacific Retirement Funds: Anchoring Social Protection in Good Finance
Pacific Retirement Funds: Anchoring Social Protection in Goo...
This paper aims to assist policymakers to clarify the role of Pacific retirement funds—particularly any financing role,
Government-Owned Banks: Their Role in Pacific Financial Systems
Government-Owned Banks: Their Role in Pacific Financial Syst...
This paper aims to assist policymakers in addressing questions around government ownership of banks while highlighting the need to increase private participation in most Pacific financial systems, for these systems to meet the financing needs of businesses.
PSDI 2007-2019 Activities and Results Overview
PSDI 2007-2019 Activities and Results Overview
PSDI ended its third funding phase on 31 December 2019. This brochure, designed to mark the end of that phase, highlights key activities and results during PSDI's first three phases (2007-2019).
PSDI Country Overviews April 2020
PSDI Country Overviews April 2020
What is PSDI doing in the Pacific? These factsheets provide an overview of all PSDI activities in the Pacific up to April 2020.
PSDI Annual Progress Report 2018–2019
PSDI Annual Progress Report 2018–2019
This report gives an overview of PSDI activities from July 2018 to June 2019.