Industry
From The Report: Papua New Guinea 2014
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Although consumer spending has weakened recently, in the long term the country will benefit from economic growth and related foreign investment, which will in turn help support consumer demand. New firms are being developed, while existing business are improving their operations. The retail sector is developing rapidly, and shopping malls are proving increasingly popular compared to the traditional general stores. When returns from the Papua New Guinea Liquefied Natural Gas project begin to feed through to the economy, the retail sector is expected to grow strongly and those who have invested in their businesses will benefit. Higher demand, the growing middle class, increased competition, and the development of more and better infrastructure will reward those who are able to supply the right products and services, and who are prepared to evolve with the economy. This chapter contains an interview with Ravi Singh, CEO, CPL Group, and a viewpoint from Michael Penrose, General Manager, British American Tobacco.

Articles from this Chapter

Overview

Despite recent weakening in sales, the long-term outlook remains positive
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Given the country’s long history of trade, industry and manufacturing, some of the big names in Papua New Guinea today, such as Paradise Foods, Pacific Industries, WR Carpenter and SP Breweries, have been around for decades. BNG Trading was founded so long ago, in 1924, that it predates the creation of the Territory of New Guinea – its name is an initialism for British New Guinea. While much of the country’s industry has been dependent upon natural resources strengths – coffee roasting was…

Viewpoint

Michael Penrose, General Manager, British American Tobacco, on the advantages of local manufacturing
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There is a significant opportunity available in Papua New Guinea to begin growing and using local tobacco. Based on our experience in Fiji, where up to 400 smallholder farmers are engaged in tobacco production, we know that local produce can substitute for imports of raw materials and have a considerable impact on the local economy, as well as be in line with the government’s economic diversification strategy. If we look to Fiji as a benchmark, where we currently produce some 400 tonnes of grown…

Analysis

Investors welcome: A look at regulations for foreign investment
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The investment environment in Papua New Guinea is liberal and open. Official policy has been to welcome and selectively encourage foreign investment and to allow for the use of expatriate workers. The Investment Promotion Authority (IPA), which was established by act of Parliament, functions as a onestop shop and provides a wide range of services – from assisting with incentives to locating land – free to qualified investors. More broadly, the government is strongly committed to the private sector…

Interview

OBG talks to Ravi Singh, CEO, CPL Group
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Interview:Ravi Singh What is the potential of the retail sector in PNG? RAVI SINGH: There is no question that retailing is a promising industry in PNG, as consumption patterns are far lower than anywhere else in the world, even for basic things like toothpaste or sugar. It is true that there are a limited number of consumers in the domestic market; however, the sector can continue growing even in a declining economy because we are starting from such a low base. Thanks to our network of markets…

Analysis

Investing in the development of agribusiness
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With strong natural advantages in agribusiness, Papua New Guinea has good soil and abundant rainfall. Because most of its fertile land is farmed using traditional methods, much of its output is organic or de facto organic. As consumers across the world demand better-quality foods, PNG’s remoteness and relative lack of industrial development and industrialised agriculture could see it well placed as a supplier of clean, high-valued food products. The country is already a major exporter of agricultural…