New Zealand expands SME support with DBSI funding and business advisory services in Solomon Islands
New Zealand is providing support for private sector development in Solomon Islands through Business Link Pacific (BLP), a programme funded by the Ministry of Foreign Affairs and Trade (MFAT), in partnership with the Development Bank of Solomon Islands (DBSI). The programme provides affordable lending and practical business support for Solomon Islands small and medium sized enterprises (SMEs).
New Zealand High Commissioner Jonathan Curr announced SBD2.3m of new wholesale capital funding for DBSI, via the New Zealand funded BLP programme, in Honiara at the end of June.
In addition, he announced that New Zealand would provide SBD 14 million in budget support to Solomon Islands Government to support ongoing policy reform and contribute to creating an enabling environment that allows for the private sector to grow.
DBSI will contribute an equal amount of its own capital to match the SBD 2.3m provided by New Zealand, and together with the SBD 1.8m in wholesale capital provided by New Zealand in 2024 this creates a combined SME lending facility of approximately SBD 6.4 million.
High Commissioner Jonathan Curr stated that the support is designed to make finance more affordable and accessible for local businesses that are ready to invest and grow.
“Small businesses are the lifeblood of any economy and are vital for government revenue through taxation and job creation”.
The BLP initiative is designed to address one of the most persistent barriers facing SMEs in Solomon Islands: access to affordable finance backed by practical business advisory support. BLP’s capital injection will enable DBSI to offer SME borrowers a preferential 8 per cent interest rate on business loans ranging from SBD 35,000 to SBD 500,000.
In addition to strengthening DBSI’s lending capacity, BLP will provide pre- and post-loan business advisory services to SME borrowers through local business advisers. This support will help SMEs prepare stronger loan applications, improve cash flow planning, and stay on track with repayments after finance is approved.
BLP will also provide targeted technical assistance to DBSI to support loan approval processes and credit decisions. Where borrowers experience repayment stress, BLP will mobilise local business advisory assistance to help businesses address operational issues early and reduce the risk of loan defaults.
Where required, BLP may also provide grant funding and/or guarantees to help bridge gaps in borrowers’ cash collateral requirements.
To access the BLP loan through DBSI, eligible businesses can contact the bank directly or through the Solomon Islands Chamber of Commerce and Industry or the Solomon Islands Business Enterprise Centre.
About Business Link Pacific in Solomon Islands
Business Link Pacific supports Solomon Islands businesses in connecting with quality approved business advisors and accessing affordable finance. Eligible SMEs with up to 50 staff can be supported to access local advisory expertise to strengthen business performance, improve readiness for finance, and support long-term growth. Business Link Pacific is funded by the New Zealand Ministry of Foreign Affairs and Trade and implemented by DT Global. BLP partners with the Solomon Islands Chamber of Commerce and Industry and the Solomon Islands Business Enterprise Centre to support SMEs nationwide.
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