MCI-UNDP Launches Fifth Phase of Innovative Business Competition (KNI): Fostering Business Innovation and Economic Diversification in Timor-Leste

Dili, 17 June 2025 (ICT-MCI Media) – The Ministry of Commerce and Industry (MCI), through the Directorate General of Industry, in cooperation with the United Nations Development Programme (UNDP), officially launched the fifth phase of the Innovative Business Competition Program (KNI) at the MCI Building in Dili. This initiative, under the “Pathway to Business” brand, clearly reflects the institutional commitment to promote innovation, youth engagement, and economic diversification.

KNI Program Structure and Objectives

In his welcome speech, the Director General of Industry explained that KNI is a strategic program of the National Directorate for Supporting the Development of Micro, Small, and Medium Enterprises (DNAD-MSME). The KNI offers young people the opportunity to submit innovative business plan proposals and receive technical support, grants, and access to machinery and equipment.

In 2025, the program continues under the theme: “Promoting Economic Diversification and Innovation to Strengthen and Ensure Sustainability through Support to Micro, Small and Medium Enterprises.” This initiative builds upon the efforts launched in 2021, which benefited 378 business groups across the Agriculture, Industry, Commerce, and Tourism sectors, with a total accumulated support exceeding USD 1.7 million.

Launch of the Publication and Application Availability

During the event, His Excellency the Minister of MCI, Mr. Nino Pereira, officially launched the “Pathway to Business”publication and the KNI 2025 mechanism, which will be accessible to the public through:

• Online platform: https://rb.gy/717uom
• Physical format: at MCI’s Disconnected Service Units (USDs) and Youth Centers in each municipality.

The application period will run from 17 June to 4 July 2025. During this time, the technical team will conduct outreach sessions across all municipalities to explain the program’s criteria, procedures, and context.

Participation, Criteria, and Benefits

KNI 2025 will engage around 300 young people in the competition and will offer: technical training, mentorship, budget support, access to credit, and business implementation opportunities.

Finalists will take part in an Entrepreneurship Bootcamp and submit an innovative business proposal in the final phase. The winner will receive a cash grant and machinery/equipment distribution totaling USD 200,000.00 in this phase.

Governance Perspective: Innovation at the Core of Economic Diversification

In his keynote speech, H.E. Minister Nino Pereira emphasized the importance of the KNI program in the national development strategy. Its aims include: creating opportunities for 75% of the country’s youth population, promoting entrepreneurship in agriculture, the creative industries, and tourism, and ensuring regional balance and inclusive economic growth.

“Business is never easy, but with creativity, guidance, and clear support, we can turn ideas into real opportunities,” said the Minister.

He further confirmed that KNI will continue to serve as an inclusive platform, expanding its criteria to reach youth of various age groups, rural communities, and marginalized groups to ensure equal participation.

Partnership Structure and Institutional Support

The fifth phase of the KNI Program is implemented by DNAD-MSME, in coordination with the YEES Project (Youth Employment and Entrepreneurship Skills), and funded by KOICA, the Government of Timor-Leste through MCI, and UNDP.

This initiative is specifically designed to turn innovative ideas into viable businesses and includes a practical validation stage through a competition format.

Framework for Sustainable Impact

Throughout its implementation, KNI has contributed to: creating alternative economic opportunities, reducing dependence on the formal sector, promoting youth economic leadership, and integrating the Sustainable Development Goals (SDGs) within communities.

UNDP, as the leading international development organization, continues to support Timor-Leste in the areas of democratic governance, economic diversification, environmental protection, and community empowerment. (nz)*