The development of micro and small and medium sized businesses (MSMEs) in Papua New Guinea requires innovation, cheaper internet access, embracing a digital economy and creating hubs for sharing ideas, entrepreneurs told an APEC discussion forum in Lae. They say without these elements the government’s goal of creating 500,000 SMEs by 2030 will not happen.
Following the successful launch of Papua New Guinea’s first sovereign bond, the International Finance Corporation is intending to issue a AAA bond as part of its efforts to deepen the financial markets in Papua New Guinea. John Vivian, IFC’s Resident Representative for Papua New Guinea, tells Business Advantage PNG that it can also assist corporate funding.
Papua New Guinea has significant opportunities for employment and foreign exchange from its fisheries, but only if it can develop the necessary policies and infrastructure. That was the conclusion from meetings of the APEC Business Advisory Council (ABAC).
The forestry sector is keeping a close eye on the US-China trade war, which has created uncertainty in the market, according to Bob Tate, Executive Director of the Papua New Guinea Forestry Industry Association. He told Business Advantage PNG China remains PNG’s dominant export market.
Managing Director of manufacturing and construction company Rhodes, Emanuel Papas, tells Business Advantage PNG that operating a business in Papua New Guinea requires a distinct set of managerial skills. He lists seven things his business has done to ensure success.
The US$500 million sovereign bond raising will improve foreign exchange cash flows, according to Robin Fleming, Chief Executive of Bank South Pacific. He tells Business Advantage PNG that it represents an ‘important milestone’ for Papua New Guinea’s financial system.
A study by the International Finance Corporation has found that for the first six months of the year, there were 34,600 tourist visitors to Papua New Guinea. They spent a total of US$78 million (K260 million), which was an average of US$2262 (K7529) per trip.
The success of Papua New Guinea’s first US$500 million bond issue will depend on the government’s spending focus, according to Paul Barker, Director of PNG’s economics research think tank, the Institute of National Affairs. He tells Business Advantage PNG that the private sector has to get access to foreign exchange because of extended delays.
The Regional Director of Digicel Pacific, Paul Statham, says the company has ‘aggressive’ plans to expand its offerings when the submarine fibre cable from Australia to Papua New Guinea is built. He says these innovations will especially benefit business.
In an interview with Business Advantage PNG’s Andrew Wilkins, the Prime Minister Peter O’Neill says he is looking for deals in LNG and mining projects that will benefit all parties. In the first of a two part series, O’Neill says his government is investing to diversify the economy.