Timor-Leste development bank expected to start MSME financing in 2027
Prime Minister Xanana Gusmão said the bank would focus on productive businesses as the government seeks to expand domestic production and reduce reliance on imports.
Timor-Leste’s National Development Bank is expected to begin providing financing for micro, small and medium-sized enterprises in 2027, Prime Minister Xanana Gusmão said at a national seminar on the 2027 budget outlook in Dili on 14 October 2026.
Gusmão said he hoped business operators submitting business plans would be able to obtain credit from 2027 to expand their enterprises. He described the bank as a government economic priority intended to support productive businesses and broaden opportunities for people to start commercial activities.
Its development focus would distinguish it from commercial banks offering loans for vehicles and other personal needs, he said. The aim was to encourage businesses that could contribute to the national economy.
Gusmão said Timor-Leste remained heavily reliant on imported goods despite the potential to produce many of them locally. He argued that business owners needed financial support to increase production capacity, expand their activities and build sustainable enterprises.
The government was also giving particular attention to women entrepreneurs who had formed business groups and organisations, he said. A seminar bringing together women entrepreneurs from across Timor-Leste is planned for 24–26 October 2026 to strengthen their participation in economic development.
Gusmão said the government should create conditions for private-sector growth rather than control all business activity. Economic diversification and job creation have been identified as key priorities for the 2027 state budget, with the aim of strengthening economic resilience and reducing dependence on the petroleum sector.
