Papua New Guinea's Drive For Long-Term Economic Growth
Video | 2 November 2018
- WATCH: Papua New Guinea's Drive For Long-Term Economic Growth – new from PNG and the Asian Development Bank partnership video series
- Papua New Guinea DPM Charles Abel: "The private sector is the primary engine for growth and job creation."
- Papua New Guinea needs a diverse economy and enabling business environment. ADB is helping achieve it.
Papua New Guinea needs a diverse economy and an enabling business environment to support long-term growth.
ADB investments in Papua New Guinea support private sector activities and economic productivity. ADB’s Pacific Private Sector Development Initiative, which is cofinanced by the governments of Australia and New Zealand, provides technical assistance for institutional and business law reforms. These efforts are helping businesses enter the formal economy, access finance to expand, compete fairly, and generate jobs and incomes.
"Papua New Guinea's Drive For Long-Term Economic Growth" is the third installment in the PNG-ADB partnership video series. The series presents ADB's contributions to the development of Papua New Guinea's energy, health, and transport sectors, as well as its drive for financial inclusion and private sector-led development.
ADB and Papua New Guinea have been working together since 1971. And the partnership continues to grow.
Port Moresby – Papua New Guinea’s economy has expanded rapidly over the last two decades. Exports of natural resources have led economic expansion.
“The private sector is the primary engine for growth and job creation. We need to support them through making it easy to do business through regulations in PNG, having a robust legal framework, getting the cost of power down, getting the cost of transport down, getting the cost of communication down,” shares Charles Abel, Deputy Prime Minister, Papua New Guinea.
ADB investments are helping lay a foundation for private sector development. Financing to expand transport networks and access to electricity are critical to facilitate private sector activities.
ADB also lends directly to businesses in Papua New Guinea. Through its private sector department, ADB is exploring possibilities in agribusiness, financial institutions, and infrastructure investments.
In 2017, ADB signed a trade finance program with Kina Bank that can support up to $4 million annually in trade. This facility can help importers and exporters engage in international trade.
ADB’s Pacific Private Sector Development Initiative provides expert technical support to create an enabling business environment. This work has made it easier for businesses to enter the formal economy, access to finance to grow, compete fairly, and generate jobs and incomes. This program is co-funded by the governments of Australia and New Zealand.
“In PNG, in particular, the key projects at the moment are under the business law reform work, competition work. And we are also re-engaging with the government in SOE (state-owned enterprises) reform and PPPs,” explains Rosanda Kora, Coordinator, PSDI.
“We also, through the PSDI, are supporting the drafting and finalization of the public-private partnership, PPP, act. This will provide some degree of certainty to private sector investors who want to come in to PNG,” expounds David Hill, Country Director, ADB.
Papua New Guinea signed its first public-private partnership (PPP) transaction advisory services engagement with ADB’s support. It will help National Airports Corporation develop Jacksons International Airport as a regional hub for air traffic in the Pacific.
Microfinance is another focus for private sector development. An ADB-supported project is increasing access to credit and building financial literacy across the country. Training programs have improved financial literacy of more than 200,000 Papua New Guineans. Mobile banking has been introduced in remote rural communities.
“Government is in the business of empowerment and creating the circumstance for businesses to flourish. Where it is commercial, we invite and engage with the private sector and let them deliver those services. And of course, very importantly, provide the opportunity for our people to be driving that processes as well,” states Charles Abel, Deputy Prime Minister, Papua New Guinea
Private sector led development is key to Papua New Guinea’s long-term economic growth.