Industry & Retail
From The Report: Papua New Guinea 2020
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With the Covid-19 pandemic set to significantly slow economic growth worldwide in 2020, Papua New Guinea’s industrial sector can expect some headwinds; however, growth is forecast to return in 2021. The authorities hope the industrial sector can benefit from the rebound and help to improve national self-sufficiency in areas such as food production, while boosting export revenues in the process. Plans to fuel the creation of small and medium-sized enterprises across a wide range of industries also bode well for future expansion. If successful, this should spur the emergence of downstream activities centred around the country’s natural resources. Meanwhile, key players in the retail sector have adapted quickly to meet the challenges presented by the pandemic. In many cases, brands have transitioned from physical stores to online platforms. Supply chains have remained relatively resilient, indicating that the sector can expect to return to the growth trajectory witnessed over recent years, fuelled by urbanisation and a rapidly growing middle class. This chapter contains interviews with James Rice, CEO, Paradise Foods; and Alfred Yau, Director, Papindo.

Articles from this Chapter

Overview

Creating opportunities: Support for small and medium-sized enterprises is seen as key to diversifying and accelerating economic growth
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The economy of Papua New Guinea is dominated by its large, labour-intensive agriculture sector and extractive industries, which are mainly focused on oil, liquefied natural gas (LNG) and various mining activities, including gold copper and silver. The manufacturing sector remains small, generally contributing around less than 2% of GDP, and is largely made up of food, soft drinks, beer and canned goods. Aside from its tuna canneries, the country’s manufactured products are targeted almost…

Interview

New roads: James Rice, Group CEO, Paradise Foods, on the importance of distribution infrastructure and access to markets
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Interview:James Rice Where do opportunities exist in the fast-moving consumer goods (FMCG) segment? JAMES RICE: The greatest opportunities in FMCG lie outside the big cities of Port Moresby and Lae. The highest potential for demand is on the islands and in the countryside, especially in western areas. Some 80% of the country’s population is centred around Mount Hagen, yet our current sales in that region are only around 15%. The region has great opportunity and I see potential for us to…

Overview

Demand for digital: Online shopping activity increases sharply as customers move away from brick-and-mortar stores
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As has been the case worldwide, in the first half of 2020 Papua New Guinea’s retail sector had to contend with the impact of the Covid-19 pandemic. In early February the government began imposing measures to limit the spread of the virus, while simultaneously introducing significant macroeconomic initiatives to support the economy and cushion business owners from challenges resulting from the lockdown measures. However, prospects for retail in the country continue to appear strong over…

Interview

Bridging gaps: Alfred Yau, Director, Papindo, on high-growth areas and addressing persistent barriers
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Interview:Alfred Yau Which regions hold the most growth potential for the retail sector, and what are the main challenges to expansion across the country? ALFRED YAU: Port Moresby, as the capital city, will continue to see a growing retail sector – so long as extractive sectors continue to expand. Outside of Port Moresby, Sepik Provinces have the most growth potential. The region has an abundance of farming and mining activities, and provided that incomes continue to increase alongside…