Business Link Pacific partners with Sugar Cane Growers Fund (SCGF) to help stakeholders and sugar cane farmers in Fiji gain access to finance and business advisory services

Through the SME Finance Facility managed by Business Link Pacific, the New Zealand Ministry of Foreign Affairs and Trade is investing $530K NZD through the Sugar Cane Growers Fund’s Cane Development Revolving Fund, as well as its priority loans service.

This week, Business Link Pacific officially launched its new partnership with the Sugar Cane Growers Fund (SCGF) to support stakeholders and sugar cane growers with access to adequate resources and capital to diversify their income, contribute to sustainability and increase inclusion within the sugar industry in Fiji.

The partnership was launched in a community event in Rakiraki (Western region), attended by over 100 people, including the Hon Minister for Agriculture, Waterways and Environment, Dr Mahendra Reddy; New Zealand High Commissioner to Fiji, H.E. Charlotte Darlow; George Vegnathan, Assistant Minister for Sugar; Raj Sharma, CEO; and Uday Sen, Board Chair of the Sugar Cane Growers Fund, and other members of the sugar cane industry.

During the event, Mr Lakshman, Head of Agriculture at FSC, spoke about the importance of intercropping to preserve soils, improve yields and farmers’ incomes. Widely used across Asia, Africa and Latin America, and in traditional agriculture, intercropping has been shown to improve yields and plant growth and is important for the future of the sugar industry in Fiji.

Under the partnership, the capital will allow sugar cane farmers who are members of the SCGF to access loans of between FJD$5K – FJD$70K to diversify into ginger. The partnership will also give access to advise from subsidised business advisory services through the BLP Network of business advisory service providers.

A new SCGF term-debt facility product will also be rolled out at a reduced interest rate of 5% per annum (down from 6% pa), with a maximum loan term of 60 months. This new financial product is available to SCGF growers who are interested in diversifying into SME growing operations outside the core sugar-farming operations.

A key qualifying requirement is that SCGF members and participants under the scheme register a new and separate business with the Registrar of Companies, enabling farmers to transition into the formal economy if they have not already done so.

Under the partnership the funding priority is ginger farming projects for sugar cane farmers who are members of the SCGF and are based in Viti Levu.

The funding will not be limited to input cost but can be used for agriculture capital development such as construction of bulk stores, the acquisition of plant and machinery, boreholes, water pumps and farm vehicles that complement those producers where the repayment is supported directly from the resulting produce.

Entries open from 1 June 2022, and the scheme will be rolled out based on the ginger growing season. 

“We know SMEs have long-standing problems in accessing financial services due to both demand and supply-side factors, overlain by significant gender-related issues. These problems have become more acute since the onset of the Covid-19 crisis.

“It is our hope that by partnering with financial institutions, such as the Sugar Cane Growers Fund in Fiji, that we will be able to break down some of those barriers, supporting businesses to rebuild better with the right finance and affordable business advice,” says Steve Knapp, Director of Business Link Pacific.

Business Link Pacific hopes this new partnership will allow sugar cane farmers to access in-country business advisory services in key areas such as financial management, information technology, continuity planning and e-commerce to help them bounce back from the pandemic and grow the sugar cane industry.

“At SCGF this is another historic moment; this is perhaps the first time one of the international bodies is partnering with us. Diversification is timely for sugar cane growers, when world prices of grains and fuel are going up,” says Sundresh Chetty, Board Member of SCGF.

For more information about BLP and the Pacific SME Finance Facility, businesses can send an enquiry to: [email protected]