Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

Cruise tourism is docking in PNG

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Steady growth in global cruise tourism is reaching the South Pacific, and Papua New Guinea is no exception. In 2014 some 22.1m passengers boarded cruise ships, up from 21.3m in 2013, according to the Cruise Lines International Association (CLIA), which forecasts 23m for 2015. (oxfordbusinessgroup.com) One of the fastest-growing source markets is Australia, where passenger numbers rose 130.3% in the five years to end-2013. While most global cruises head for the Caribbean (37.3%), the Mediterranean (18.9%) or Northern Europe (11.1%), Asia, though it made up just 4.4% of 2013 traffic, was expected to see the highest surge in ship deployments of any region in 2014,

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Tourism events in PNG showcase the country

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The capital of Port Moresby is set to undergo a significant transformation, while the country as a whole should be left with a lasting legacy when Papua New Guinea plays host to two recognised sporting events over the next two years. The 2015 Pacific Games took place in the capital in July, and the FIFA U-20 Women’s World Cup is scheduled for November 2016. If successfully organised and held, they should convey to the world that PNG is capable of hosting large-scale events and provide significant marketing exposure for the country’s sights and sounds to an international television audience. The tournaments also serve as a

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Manufacturing in PNG centres on fisheries

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In recent years, Lae, the capital of Morobe Province, has become PNG’s main manufacturing centre, with one of the most vibrant segments arising in the fisheries sector, especially tuna processing and canning. The country’s economic growth – expected to accelerate quickly now that the Exxon-Mobil liquefied natural gas project has come on-stream – is likely to benefit PNG’s industry tremendously, as the local market expands to supplement existing export trade. Planned industrial and commercial parks, if successful, will also bring new benefits for manufacturers and food processors. Morobe’s industries face many obstacles, however. Infrastructure and land access are major concerns. In fishing and related businesses,

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

PNG decentralises power and improves local control

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Ever since Papua New Guinea gained independence from Australia in 1975, its wide diversity in language, ethnicity, culture and geography has created a tendency towards decentralised institutions. At the same time, however, there has been an opposite tendency: towards more control over local affairs by national authorities. To strike a balance between the levels of government – national, regional, provincial, district and local – is thus among PNG’s main political and economic challenges. Devolution Movement In 1977 Parliament passed the Organic Law on Provincial Government, establishing directly elected provincial assemblies. These in turn would elect provincial governments in the same way as the national parliament

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

PNG regulators guard the environment

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The establishment of the Conservation and Environment Protection Authority (CEPA) will see significant changes in the ways applicants for, and holders of, environment permits interface with the environmental regulator. CEPA was established under the Conservation and Environment Protection Act 2014 (CEPA Act) and takes over the role formerly undertaken by the Department of Environment and Conservation as PNG’s environmental regulator. The head of the authority is the managing director who is broadly equivalent to the head of a government department. The managing director reports to a board. The minister, and through him the government, retains control over all policy matters and directs the managing director

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Two business name acts on the books in PNG

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In May 2014 the National Parliament enacted the Business Names Act 2014 (New Act). At the time the New Act came into force, PNG already had business names legislation – the Business Names Act (Chapter 145) (Old Act) in force. The New Act does not repeal or amend the Old Act so that, technically at least, PNG now has two business names acts in similar (but not identical) terms. The Legislative Counsel intended the New Act to repeal the Old Act, however, the provisions repealing the Old Act were omitted from the New Act. The government intends to introduce legislation amending the New Act so

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Favourable conditions

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Palm oil has long been a success story for Papua New Guinea’s agricultural sector, with large plantations providing the bulk of agricultural export revenues and serving as a crucial component of economic diversification efforts to balance out the heavily weighted extractive industry sectors. Established in the 1960s, the original Hoskins and Bialla (now Hargy Oil Palms) oil palm plantations were set up in New Britain according to the nucleus estate smallholder (NES) model. The NES system was designed to be not only profitable but to also benefit local communities which were already largely dependent on agriculture as a means of subsistence. Under this system the

Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

PNG works to better manage fishing sources

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Endowed with some of the most bountiful fisheries in the world, PNG’s waters have traditionally supplied abundant amounts of protein- and nutrient-rich food for settlements dotting the country’s 17,000 km of coastline. While seafood remains a key staple for many Papua New Guineans’ diets, the presence of highly sought after catches, such as tuna, prawns, lobster and others, has fuelled a growing commercial industry. Participants operate a diverse array of fisheries across the country in varied marine ecosystems, with small-scale artisanal communities, local small and medium-sized enterprises, and large-scale international purse seine fishing operations. In all, PNG boasts one of the largest fishery zones in

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

PNG’s export of raw logs supports growth

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Second in the agriculture segment to the palm oil industry in export value, Papua New Guinea’s forestry sector continues to expand on the back of strong regional demand for raw materials. The rate of growth for the industry has accelerated over the past decade as the government has allocated large swaths of land for agricultural development which has allowed companies to fell increasing amounts of valuable tropical hardwoods for export. A very diverse range of timber species are harvested from PNG forests, with no single species generally representing more than 15% of production. This has propelled the country to its current status as the second-largest

Daniel Asare-Kyei-CEO-Esoko; Curtis Vanderpuije-CEO-ExpressPay; and Daniel Marfo-General Manager-Zipline Ghana

Global cocoa price increases motivate growers in PNG

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The past decade have seen trying times for cocoa farmers in Papua New Guinea. They have dealt with devastating attacks by the maligned cocoa pod borer (CPB) starting in 2006, followed by a drop in cocoa market prices which have brought the industry to the brink of collapse in recent years. Concerted efforts to revive the crop were led by farmers, international aid organisations and local trade organisations such as the Cocoa and Coconut Institute, and are now beginning to show results, with producers and exporters turning the corner in 2014. Domestic Production Domestic cocoa production is forecast to reach 42,000 tonnes for the 2014/15