ADB talks investing in Kahuto: 'We saw their potential'

Local aerial mapping company Kahuto Pacific is bringing a new, innovative service to support local landowners and the Government, with the backing of the Asian Development Bank (ADB) Frontier Seed programme.

Launched in March this year, ADB Frontier Seed (Pacific) aims to help businesses develop their offerings and build local industries through funding and other forms of support. 

Kahuto Pacific was announced as one of the initial recipients of a US$200,000 ($450,460) cost-recoverable financial package. Several months later, they've delivered on their plans, launching Moana Data Services (MDS) to benefit Fijians in need of high-quality and affordable geospatial data. 

"With our investment in Kahuto, we saw the potential that Moana Data Services could bring," said ADB Frontier investment manager Fredrik Helsingen at the MDS launch on Wednesday.

"We saw the need in the market, and from a climate perspective, the impact it could bring is plentiful."

ADB investment manager, Frederik Helsingen, ADB project analyst, Kadia Lutubula, and Kahuto Pacific founders Jonina Wetzell and Christopher Saili.

Jernese Macanawai

The ADB has invested risk capital on cost-recoverable terms, meaning that Kahuto would eventually repay the investment. It all depends on their success and performance, according to Mr Helsingen. 

"There are no fixed standards. There is no fixed payment. So, we are very incentivised to support and help all the companies that we provide capital to," he said.  

ADB, he added, recognised that Small and Medium Enterprises in the Pacific faced challenges in accessing capital from traditional financing providers due to a perceived high risk. Kahuto is now one of the many companies that Frontier Seed supports.

"This is just the beginning. We supported them in making them investment-ready," Mr Helsingen said.

"We provided the capital, and now we're supporting them throughout the tenure of the investment."

Feedback: jernese.macanawai@fijisun.com.fj