Trade & Investment
From The Report: Papua New Guinea 2015
View in Online Reader

Despite Papua New Guinea’s low ranking in the World Bank’s “Doing Business 2015” report, it regularly draws foreign capital in the billion-dollar-a-year range. The country is attractive for a number of reasons. It remains one of the most liberal economies in the developing world, offering national treatment and few restrictions on investment. It is also blessed with abundant natural resources. The country has sizeable deposits of copper, oil, gas and silver, as well as significant tracts of saleable lumber. On the trade side, it is an open market with low tariffs. With one major resource project already completed and another going ahead, PNG has set the right tone to attract investors and has a good pipeline of activity. More major projects could follow, and importantly smaller players and non-resources investors are starting to see the potential of the nation.

This chapter contains a viewpoint from Xi Jinping, President of China; and interviews with Josaia Voreqe Bainimarama, Prime Minister of Fiji; Miguel Arias Cañete, EU Commissioner for Climate Action and Energy; and Ivan Pomaleu, Managing Director, Investment Promotion Authority (IPA). 

Articles from this Chapter

Overview

PNG works to overcome transport bottlenecks
OBG
plus

Despite Papua New Guinea’s low ranking in the World Bank’s “Doing Business” survey, it regularly draws foreign capital in the billion-dollar-a-year range. The country is attractive for a number of reasons. It remains one of the most liberal economies in the developing world, offering national treatment and few restrictions on investment. It is also blessed with abundant natural resources. The country has size-able deposits of copper, oil, gas and silver, as well as significant tracts of saleable…

Viewpoint

Xi Jinping, President of China: Viewpoint
OBG
plus

Viewpoint: Xi Jinping The Chinese economy has remained consistently strong as we focus on reforms and liberalisation, and we are confident of maintaining this momentum going forward. China and the Asia-Pacific share a symbiotic relationship. Both parties rely on one another for new job prospects and economic growth. We hope to establish more links with the Asia-Pacific in order to build a better and more prosperous future. The global economic recovery will be filled with difficulties and setbacks.…

Interview

Josaia Voreqe Bainimarama, Prime Minister of Fiji
OBG
plus

Interview:Josaia Voreqe Bainimarama How important is the Pacific Islands Forum (PIF) membership to the government of Fiji? JOSAIA VOREQE BAINIMARAMA: During the years of our suspension, Fiji and many of its neighbours set up another regional institution, the Pacific Island Development Forum (PIDF) and threw it open to many sections of Pacific society that had been excluded from the PIF. We enabled the French territories, for instance, to become PIDF members and gave a voice for the first…

Analysis

International investors are drawn to new developments in PNG
OBG
plus

Papua New Guinea is in the process of restructuring its state sector in order to make it more efficient and to finance necessary capital expenditures. A wide range of options are being explored, from public-private partnerships (PPPs) and privatisations to an extensive rejigging of national assets. For international investors, the steps being taken may offer considerable opportunities. PNG is contemplating making equity and partnership stakes available in some key assets, while potential strategic…

Interview

Miguel Arias Cañete, EU Commissioner for Climate Action and Energy: Interview
OBG
plus

Interview:Miguel Arias Cañete What is the EU’s commitment under the UN Framework Convention on Climate Change? MIGUEL ARIAS CAÑETE: The EU has been at the forefront of international efforts to fight climate change, and is committed to helping secure an ambitious global climate deal in Paris in December 2015. Our leaders have agreed on a legally binding target to reduce EU greenhouse gas emissions by at least 40% by 2030 compared to 1990. Urgent action is needed to reduce emissions and…

Interview

Ivan Pomaleu, Managing Director, Investment Promotion Authority (IPA): Interview
OBG
plus

Interview: Ivan Pomaleu To what extent will the 2015 budget revision affect allocations to government services, and what effect will this have on attracting foreign investment? IVAN POMALEU: During this time of tight fiscal and monetary policy, the government’s priorities remain the education and health sectors. Inevitably, some government agencies – like the IPA – are not currently experiencing increases in budgetary allocation. Practically, what this means is that we will have to look to…

Analysis

New legislation in PNG raises concerns about protectionism
OBG
plus

While Papua New Guinea is one of the most open developing economies in the world, with low tariffs, national treatment for foreign investors, bilateral investment treaties and few closed sectors, new policies could be introduced that would make the environment less liberal and welcoming. So far, the status quo remains and companies are free to invest in and sell into the country as before. However, the rhetoric is heating up, and some steps have been taken that indicate changes could be on the way. Fully…