Timor-Leste Sustainable Development - Private Sector Crucial

Vibrant Private Sector Critical To Sustainable Development Of Timor-Leste: ADB VP

DILI, TIMOR-LESTE (7 February 2012) – A strong private sector is as important to Timor-Leste's long term success as it is elsewhere in Asia and the Pacific, Asian Development Bank (ADB) Vice-President of Private Sector and Co-financing Operations Lakshmi Venkatachalam told the 2012 Forum on Inclusive Growth here.

"Small and medium sized private sector activities need close nurturing if you are to realize your inclusive growth agenda, and jobs are to be provided for everyone," Ms. Venkatachalam told those gathered at the forum.

The 2012 Forum on Inclusive Growth took stock of economic activities in Timor-Leste that promote the kind of economic growth that allows even the poorest and most vulnerable to benefit. Ideas were exchanged on involving public and private stakeholders in encouraging entrepreneurship and creating practical ways for the poor, women and youth to start, expand and sustain businesses.

During her address, Ms. Venkatachalam acknowledged that the country's expanding portfolio of infrastructure investments, and its pursuit of public-private partnerships will contribute to bring in large scale investments. During her 6-8 February visit, Ms. Venkatachalam also held discussions with senior government officials and representatives of the private sector.

The five-year strategic partnership between ADB and Timor-Leste’s government supports infrastructure development, financial services, and skills training to meet the needs of a growing economy. Fostering regional cooperation and integration is also a key component.

ADB’s private sector development initiative—a regional technical assistance project cofinanced by AusAID—is helping build a business environment that’s more conducive to private sector involvement. Increasing access to finance opportunities in Timor-Leste is key to the initiative.ADB assistance has already produced tangible results in building private sector support for the economy. Ten years of ADB support for the Instituição de Micro Finanças de Timor-Leste culminated in its inauguration in July 2011 as the Banco Nacional Comércio de Timor-Leste, the country’s first locally owned commercial bank. It opened with branches in 12 of Timor-Leste's 13 districts, $8.5 million in savings from almost 54,000 depositors, and $11 million in loans from more than 11,000 borrowers, 4,700 of whom were women.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members -- 48 from the region.

ENDS

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