PNG Financial Inclusion Policy Forum, remarks by Dr. Eliki Boletawa, AFI

Distinguished guests, ladies and gentlemen, friends, colleagues, Morning Tru (Good morning) and thank you for the invitation. I am delighted to be part of this prestigious and important event.

Seven months ago, in March, AFI’s Chief Executive Officer, Dr Alfred Hannig, was privileged to attend the opening of Papua New Guinea’s Green Finance Center, a significant milestone in the country’s journey towards a sustainable and inclusive financial system. Today, on behalf of the AFI Network, it is my turn to congratulate you on another exciting milestone, the first ever PNG Financial Inclusion Policy Forum.

AFI is a great believer in forums. Each year, 700 policymakers and regulators from all over the world attend the AFI Global Policy Forum. They come to meet, talk to, and learn from each other, discovering what’s working, and what’s proving challenging, in the quest for financial inclusion.

The reason people come each year, often travelling very long distances, is because the model works. Exchanging with peers, comparing and contrasting experiences, lets us acquire the trusted insight needed to take smart policy decisions. A Forum can be a key enabler and accelerator for progress.

I am sure that the PNG Financial Inclusion Policy Forum will play this role, educating and inspiring us, stimulating and supporting our efforts to bring all citizens into the financial system.

As our 2024 AFI Global Policy Forum happened recently, I thought it might be interesting to share with you the four big issues that dominated discussions.

First, and above all, the disruptive potential of digital. It’s clear that new technologies hold immense potential to expand access to financial services. The issue, or challenge, around digital, that people were talking about, was how to ensure that new technologies and new ideas benefit everyone, particularly those who have historically been marginalized or underserved. 

In that sense, to support financial inclusion, creating new products, services, or technologies is not enough. They need to be designed with diverse populations in mind, and we must ensure they are affordable, accessible, and relevant to a wide range of people. In other words, innovation must be inclusive, and policymakers can play a key role here by creating an environment that supports inclusive innovation.

A second noteworthy aspect of our Global Policy Forum was that conversations were no longer focusing on access, but on usage. Countries have made impressive progress in expanding access to accounts, but it’s clear that we need more action in promoting people’s effective usage of them, whether traditional bank accounts, electronic wallets, or mobile wallets. If we can shift the needle on usage, this will serve as a springboard for inclusive growth, allowing people to contribute to the economy.

The third big issue was around women’s financial inclusion. Across the AFI network, there’s an acknowledgement that gender inclusivity is now an integral part of central bank policy. Our members are actively developing policies that tackle the barriers stopping women from accessing and using finance. A major help in this regard will be AFI’s Gender Inclusive Finance Policy Model, which was published during the Global Policy Forum and which you can find on our website.

The last of the four big issues will have particular resonance for this audience.

Climate change is posing a severe threat to financial stability, and as such, central banks cannot afford to be passive. Around the world, policymakers and regulators are actively developing Inclusive Green Finance, an approach pioneered by the AFI network, which helps vulnerable communities build resilience to climate shocks, and which facilitates the transition to a green economy, through expanding access to financial services.

Nowhere is this more of a priority than in the Pacific. Our region, as we all know, is under real threat from rising sea levels and nature-related catastrophes. The impact of climate change is hitting our most vulnerable groups, those with the least coping capacities, hardest.

Pacific countries, and notably Papua New Guinea, are taking a global lead on this issue. AFI was pleased to be able to support PNG in developing its groundbreaking Inclusive Green Finance Policy, which was launched last year. Now, we now stand ready to support the work of the Green Finance Centre, which is bringing that policy to life. We have already learnt a lot from Papua New Guinea’s inclusive approach to greening its financial system, and we look forward to following the next stage of the journey.

AFI is pushing hard to keep inclusive green finance high on the global climate action agenda. I would like to thank Governor Genia for speaking out on this issue at AFI’s side event on Inclusive Green Finance and financial stability at COP28 in Dubai. Earlier this week, we organized a similar event at COP29 in Baku, discussing how regulators can develop and implement key performance indicators for IGF policies.

The Bank of Papua New Guinea is not only leading in inclusive green finance but also playing an active role in all seven of AFI’s working groups. The Bank contributes to global progress on issues such as SME finance, consumer empowerment, financial inclusion strategy, data, and global standards. It has committed to 17 Maya Declaration targets, which focus on a country’s financial inclusion goals. I would like to highlight the Bank’s work in promoting women’s financial inclusion through its Gender Equity and Social Inclusion Policy. Of the 17 targets, seven have been completed, and BPNG has set an excellent pace for its financial inclusion agenda, remaining at the forefront of the Pacific region.”

Governor Genia, Assistant Governor Awap, thank you for your support to our network over the last fifteen years. We appreciate the Bank’s contribution greatly and I look forward to our continued collaboration

In conclusion, let me wish you great success for this first PNG Financial Inclusion Policy Forum. I also acknowledge and recognize the efforts and support of all stakeholders of financial inclusion in this beautiful nation. Thank you for being part of PNG’s journey to greater financial inclusion. I look forward to listening and learning about your progress in inclusive green finance, gender inclusive finance, digital innovation, and much more. I’m also very much looking forward to the Financial Inclusion Excellence Awards, this evening. By recognizing and celebrating people’s outstanding contributions and achievements in advancing financial inclusion, we inspire continued commitment and further innovation.

Thank you again, Tenk yu tru for the invitation to be part of this special day. Vinaka!