Industry & Retail
From The Report: Papua New Guinea 2019
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Already major contributors to the nation’s revenue base, Papua New Guinea’s industry and manufacturing sectors hold significant potential for future investment and development. As such, the administration of Prime Minister James Marape remains devoted to a course that will encourage and protect businesses while working towards a reduction in the national import bill. This policy serves to both hedge against the boom-and-bust cycle of the resource economy, and avoid the ongoing issues the country has faced in obtaining foreign currency by replacing imported inputs with domestic produce. Meanwhile, with a mood of cautious optimism, PNG’s retail sector is recovering from a period of uncertainty caused by the earthquake in Hela Province in early 2018. That same year was marked by sluggish growth, before the APEC Leaders’ Summit in November 2018 triggered an upturn in the hospitality and general retail sectors, and encouraged businesses to invest with more confidence. This chapter also contains interviews with Stan Joyce, Managing Director, South Pacific Brewery; Mahesh Patel, Managing Director, CPL; and Nathaniel Ho, Executive Director, Rimbunan Hijau Group.

Articles from this Chapter

Overview

Game plan: The government’s development plan for the medium term sets in motion a course of action for sizeable gains
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Already major contributors to the nation’s revenue base, Papua New Guinea’s industry and manufacturing sectors hold significant potential for future investment and development. As such, the administration of Prime Minister James Marape remains devoted to a course that will encourage and protect businesses while working towards a reduction in the national import bill. This policy serves to both hedge against the boom-and-bust cycle of the resource economy, and avoid the ongoing issues the country…

Interview

Recipe for growth: Stan Joyce, Former Managing Director, South Pacific Brewery, on the key ingredients for catalysing local industrial development
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Interview:Stan Joyce How have government measures like the introduction of import tariffs affected domestic industry? STAN JOYCE: The government has recognised the importance of manufacturing in Papua New Guinea and realised that a favourable import regime is crucial for the sector. Domestic manufacturers and the government have negotiated for a long time regarding how to help the sector without hurting the investment climate, and we should now have a very encouraging tariff regime. The…

Analysis

Homegrown solutions: Policymakers turn to fostering local industry growth and developing domestic alternatives to imports
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The imposition of import tariffs in Papua New Guinea in recent years has had a broadly positive effect on local industry, both in terms of encouraging capital investment by manufacturing companies and ensuring the survival of existing industrial firms. However, the policy has also caused some supply-side constraints and raised questions about the country’s attractiveness to international investors. Until recently, PNG was one of the most open economies in the region – regularly scoring highly…

Overview

On the up: Demographic and economic factors bode well for retail as businesses recover from a shaky 2018
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With a mood of cautious optimism, Papua New Guinea’s retail sector is recovering from a period of uncertainty caused by the devastating earthquake in Hela Province in early 2018. That same year was marked by sluggish growth before the APEC Leaders’ Summit in November 2018 triggered an upturn in the hospitality and general retail sectors, and encouraged businesses to invest with more confidence. Adding to the positive sentiment, the $13bn Papua LNG project and two multibillion-dollar copper and…

Interview

Positive steps: Mahesh Patel, Managing Director, CPL, on efforts to improve and diversify the country’s retail offerings
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Interview:Mahesh Patel What is the short- and medium-term outlook for the retail sector in Papua New Guinea? MAHESH PATEL: The retail sector will continue to grow as the population grows, although the pace is currently slower than it should be. PNG is still very dependent on its natural resources, such as liquefied natural gas and mining products, and low commodity prices have had a significant impact on the market. There is also a lack of diversification and job creation. Future growth of…

Interview

Shopping around: Nathaniel Ho, Executive Director, Rimbunan Hijau Group, on opportunities for expansion and riding out global headwinds
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Interview:Nathaniel Ho What is your outlook for Papua New Guinea’s retail sector in the coming 12 months? NATHANIEL HO: Global markets will remain volatile in the latter half of 2019 and likely beyond. We have not seen certainty since the US triggered a trade war with China, which has dealt a blow to consumer confidence. The situation is hurting both manufacturers and retailers, and is causing a slowdown not only in the Chinese economy, but has impacted smaller economies as well. In PNG’s…