MiBank has called for stronger land value documentation as a practical pathway to expand lending to farmers and rural enterprises in Papua New Guinea.
The Post-Courier reported that MiBank’s chief executive had urged reforms to help unlock credit, stating the aim was “to unlock the big demand for credit in Papua New Guinea’s rural sector”. The issue goes to the heart of one of the country’s most persistent development challenges: the gap between economic potential in agriculture and the limited ability of farmers to access finance.
For lenders, the problem is not simply willingness to lend. It is the difficulty of establishing clear collateral value and enforceable security arrangements. Much of the land in Papua New Guinea is held under customary ownership, which provides social stability but can complicate formal valuation and lending.
MiBank’s comments suggest a push for practical solutions that respect customary tenure while enabling banks to better assess risk. Clearer documentation of land value can support a range of finance products, including working capital loans, equipment financing and seasonal credit.
The demand is significant. Agriculture remains the backbone of livelihoods for much of the population, and cash crops such as coffee, cocoa, copra and fresh produce continue to underpin rural incomes. Yet many farmers remain locked out of formal credit, limiting their ability to invest in productivity improvements, climate resilience and value addition.
Improved access to finance could have wider economic effects. It would support supply chain growth, expand small business activity in rural centres, and strengthen export performance. It could also reduce reliance on informal lending, which often comes with high costs and limited protections.
However, reforms in this area require coordination across government agencies, land administration systems, banks and local communities. Valuation frameworks must be credible, consistent and culturally workable.
MiBank’s intervention signals that financial institutions see a commercial opportunity as well as a development imperative. The next step will be translating the concept into policies and systems that can operate at scale across Papua New Guinea’s diverse provinces.
