Friday 18^th Dec, Cook Islands News

Money available to new small businesses

Outer islands development grant scheme up and running again

If you’re living in the outer islands and have a small to medium sized business, or a proposal for one then you may be eligible for funding support.

            A new agreement between between government’s ministry of finance, business trade investment board (BTIB) and NZAID was signed last week to set out the provisions of funding support for small and medium sized businesses.

            The agreement will allow the Outer Islands Development Grant Fund (OIDGF) scheme – created to assist business development – to continue with around $300,000 in funding.

            BTIB has managed the fund since 2007 with existing contributions.

            With funds exhausted and an improved track record in terms of administration and disbursement, the partners began negotiations regarding the future of the fund.

            At the same time government developed a small and medium enterprise (SME) strategy, signed off by cabinet in February, which aims to outline broad priorities for economic development. Following these developments NZAID reconfirmed its support for sustainable economic development and the OIDGF as part of that.

            In order to adapt the fund to the new context and integrate lessons learnt from experience, the terms and conditions and criteria for it were renegotiated.

            This included redesigned monitoring and evaluation aimed at improving the fund’s impact and outcomes for outer island residents.

            The fund aims to develop local economic activity in the outer islands by stimulating the private sector – from companies, sole traders and associations to cooperatives and groups.

            Development is intended to be broad based and include renewable energy, fishing, growing and crafts.

            The fund operates by supporting initiatives that generate productivity, revenue and employment in the outer islands and the country in general, provide opportunities for Cook Islanders in the outer islands as a means of reducing depopulation and develop trade links between market places (such as Rarotonga and Aitutaki) and outer island producers.

            BTIB says the fund scheme has been working well and since 2007 grants approved have benefited the islands of Atiu, Aitutaki, Mauke, Mitiaro, Mangaia and Manihiki.

            Funds disbursed were used for projects such as hydroponics, parasail, joinery, roaster hire, screen printing, bakery, mechanics workshop, aquaculture, handicrafts, coconut oil, catering, carving and piggeries.

            The scheme’s priority areas are:

• Marine resourses and marine based proposals
• Agriculture based proposals
• Tourism proposals ( other than tourism accommodation and lagoon cruises in Aitutaki)
• Products for supply either to Rarotonga or overseas markets
• Niche proposals not present in the market where the application is being made.
• Areas identified by the Cook Islands SME strategy.

BTIB chief executive Terry Rangi says the grants awarded usually start from $5000.

            For more information on the OIDGF and its criteria, contant Selina Napa at BTIB by email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or calling her on 24296