The Asian Development Bank (ADB) yesterday announced its Frontier Seed (Pacific) program and identified the first two recipients.
The ADB Frontier Seed (Pacific) program aims to develop local capital markets and support businesses building local industries, contributing to inclusive and sustainable growth in frontier markets.
These businesses are known as “gazelle enterprises” under the program.
ADB Frontier Seed (Pacific) program signed a $US200,000 ($F458,000) cost-recoverable technical assistance agreement with SeaPAC Pte Ltd, a saltwater prawn producer in Fiji, to support the commercialisation of Fiji’s prawn industry and promote food security.
ADB Frontier also signed a $US200,000 ($F458,000) cost-recoverable technical assistance agreement with Kahuto Pacific, an aerial mapping company, to help develop new mapping offerings, to increase the availability of coastal data for the Pacific.
“Through ADB Frontier, we are taking a bold step forward by providing risk capital,” said ADB deputy regional director for the Pacific Emma Allen.
“By standing alongside business owners and sharing risk, we aim to demonstrate the potential of these companies, attract new investors and contribute to a thriving business ecosystem.”
Officiating at the event, DPM and Minister for Trade Manoa Kamikamica welcomed the program’s unique aspect in that recipients were not burdened with fixed repayment terms.
“The Government of Fiji welcomes ADB’s Frontier Seed (Pacific) program as a vital initiative to support our local industries and drive sustainable economic growth,” Mr Kamikamica said.
“By supporting innovative businesses like SeaPAC and Kahuto Pacific, this program directly contributes to Fiji’s vision of a resilient and self-sufficient economy.
“This initiative strengthens our private sector development and creates jobs.”
ADB Frontier project consultant Mathew Viner said the new initiative is a direct small medium enterprise (SME) financing program with a mission to capitalise the growth of potential ‘gazelle’ businesses in order to help transform markets and to provide both ocean and climate impact solutions.
“We’re looking for companies that need our capital, maybe they’re not able to get capital from traditional sources and are looking for different approaches,” Mr Viner said.
“Another element is that we do have a mission to drive sustainability through ocean impact blue economy, and make sure that we’re on the right side of climate change in the long run.
“We also support more companies that have turnover of around $F400,000 and the idea is that the intiative is really providing risk capital, so we share risk with the company, and so we’re looking for those companies that have evidence of some early ability to grow and develop and show their business model and are ready for the next stage but need support to get there,” Mr Viner said.
The ADB Frontier Seed (Pacific) program is supported by ADB, Ocean Resilience and Coastal Adaptation (ORCA) Trust Fund, Nordic Development Fund and United Kingdom Foreign, Commonwealth and Development Office.
ADB committed a total of $US2million ($F4.58m) and the ORCA Trust Fund also provided $US2million ($F4.58m) to the programme.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific.
NOTE: This article was first published in the print edition of the Fiji Times dated MARCH 14, 2025.
