Papua New Guinea (PNG) is one of the resource-rich countries in the world. Its resource endowment includes, inter alia: the forestry, agriculture, fisheries and minerals such as copper, gold, cobalt, and nickel which provide excellent opportunities for foreign investors.
The PNG economy is dominated by two broad sectors: the agriculture, forestry and fisheries sectors on one end and the minerals and energy extraction sector on the other which account for majority of the export earnings and Gross Domestic Product (GDP).
PNG has one third (1/3) of the world’s pristine tropical rainforest which has been harvested and exported as logs to international markets. In 2019, the Government made an important decision to stop the export of logs and is embarking on downstream processing within the country. This is an important policy decision of Government for PNG to maximise its gains from the industry and create job opportunities for the people.
The agriculture sector is the back-born of the country which support 80% of its population living in the rural areas. However, its agriculture products and commodities for export include coffee, cocoa, copra, palm oil, and vanilla.
The fisheries sector ranges from inland river fisheries, aquaculture, coastal beche-de-mer and reef fisheries to the prawn trawl and large-scale deep-water tuna fisheries. It also supports rural and island communities for income generation, food security, and improvement in the livelihood and living standards of the people.
PNG is regarded as a mining state because of its vast mineral resources such as gold, copper, nickel, cobalt, chromium, molybdenum, iron and platinum. Current mining projects include the Ok Tedi, Porgera, Lihir, Ramu, Hidden Valley, Tolukuma, Simberi, and Sinivit.
The Frieda River Project will be developed as soon as all negotiations between the Government and concerned parties are concluded. It is one of the biggest copper and gold deposits found in the Asia-Pacific region.
PNG established the US$19 billion LNG Project in 2014 that currently exports natural gas to Japan, China and other markets. It produces over 8 million tonnes of LNG gas per year. Since its establishment, the Project generated K5 billion for the country as taxes to the Government as well as payments for landowner royalties, development levies, and dividends.
The Government is also in negotiation with foreign investors for the development of other LNG projects in the country. These include the P’nyang and Papua LNG Projects. These projects could contribute an additional 8 million tonnes of LNG gas per year for the country.
PNG has a huge potential for the development of its tourism industry. The Government is giving priority for its development and is offering attractive incentives for foreign investors.
The above provides a glimpse of the resource endowment of the country and the rich potential for investment opportunities in the country.
More information can be obtain from the folllowing websites:
Investment – www.ipa.gov.pg
PNG Liquified Natural Gas – www.pnglng.com
Mineral Resource Sector – www.mra.gov.pg
Petroleum and Gas Sector – www.petroleum.gov.pg