Building an Inclusive Financial Sector in Papua New Guinea


Papua New Guinea has made various commitments to building an inclusive financial system and an financially competent generation of Papua New Guineans.  At the 2009 Finance and Economic Forum Meeting, all Pacific island nations icluding PNG, through the combined actions of public and private sectors, committed to achieve the Money Pacific Goals 2020 where all children to receive financial education through core curricula; all adults to have access to financial education; simple and transparent consumer protection are put in place; and twice as many Pacific Islanders have access to basic financial services.

Government of PNG's Development Strategic Plan 2010–2030 and Vision 2050 also recognize that significant progress is needed to extend financial services to the general population. 

 Vision 2050 for Wealth Creation & Poverty Reduction


Priority Activities

Key Outcomes

Key Performance Indicators

Means of Verification

Citizens to have accessibility to grants/credit/ funding

Roll out financial literacy programs

Increased monetization of the economy

Growth in credit for agriculture, forestry, fisheries, tourism and manufacturing sectors

Credit volume to these sectors, as reported by BPNG’s Quarterly Economic Bulletin

Recognizing the economic importance of informal livelihood activities for the majority of PNG’s population, the Informal Policy 2011-2015 recognizes financial inclusion as a priority action area.  To build upon the policy’s priority action area, the Bank of Papua New Guinea, with technical and financial assistance from the Pacific Financial Inclusion Programme, led the development of the 1st National Financial Inclusion and Financial Literacy Strategy 2014-2015.  As a member of the Alliance for Financial Inclusion, Bank of PNG signed the Maya Declaration in 2013, committing to the following:

  1. To reach 1 million more unbanked low-income people in Papua New Guinea, 50% of whom will be women;
  2. To lead efforts to create a financially competent generation of Papua New Guineans through financial education and financial literacy;
  3. To actively support innovative use of technology for scaling-up access to financial services and financial literacy;
  4. To strengthen consumer protection by issuing prudential guidelines and creating a platform for various national regulators and industry networks to monitor consumer protection;
  5. To begin the process of integrating financial inclusion in local and national government, including getting the National Executive Council to endorse the National Financial Inclusion and Financial Literacy Strategy by quarter 4 of 2013;
  6. To promote regular collection and use of financial access data to inform policy making and help identify key dimensions of financial inclusion in Papua New Guinea; and
  7. To optimize these results through knowledge sharing and effective coordination of stakeholders, including development partners, by the newly established Centre of Excellence for Financial Inclusion chaired by the Bank of Papua New Guinea.

UNDP, working through UNCDF’s Pacific Financial Inclusion Programme, supports the Bank of Papua New Guinea in the development of an inclusive financial sector by providing technical advice and assistance to public and private stakeholders as well as performance-based grants to private sector financial service providers.


Scaling up development of an inclusive financial system to reach one million more unbanked and underserved, of which 50% women, reached by 2015

Build regulatory and outreach capacity to target, reach low-income and rural markets

Project information


Poverty Reduction

Project Period:                            


Implementing Partner(S):       

Bank of Papua New Guinea

Participating Agencies: 

UNDP CO, UNCDF, UNDP Pacific Centre


Policy, Advocacy and Stakeholder Coordination

Assisting BPNG to draft National FI Strategy

Permission for MM operations, MM Directive

Draft Strategy for Microinsurance regulation

Training of Regulators  (Mobile money, microinsurance)

Joint projects with ADB, IFC

Financial Inclusion included in the UNDAF

Linked UN Women with MFI partner to implement  Safe Cities project in POM Market

Scalable and Replicable Projects

Grant to NMB for M-banking platform, BB solution (with ADB). Reached 97,707 depositors and US$30.6 mm deposits)

Grant to NMB to launch MiCash (11,712 accounts)

DataNets piloted e-payments with PostPNG and Mpowa to low income users (bought by Digicel)

Work with OCL, private air-time distributor to enter into market as mobile money agents (11,250 registered customers)

Piloting Microinsurance product  (NMB and insurance company)

Westpac “transformational” accounts: 31,202 depositors

Knowledge Generation and Sharing

1 Financial Services Sector Assessment done, update in progress

Microinsurance demand research, knowledge exchange

Financial Diaries project underway, first data-sharing workshop completed

Mobile money training to POM Chamber of Commerce

Governor of BPNG visits Fiji FinEd project

Financial Competency Building

Financial Competency Survey completed – strategy workshop in Aug 2013

Wespac Financial Literacy programme: 15,726

UNDP Around the world

You are at UNDP Papua New Guinea 
Go to UNDP Global