Papua New Guinea is the largest of PEP-Pacific’s member countries. It is rich in human and natural resources, but economic growth has lagged behind population growth and social indicators remain poor. Sustainable growth in jobs and incomes, and improved living standards, will depend on increased productivity in the renewable resources sectors and increased output in manufacturing and tourism.
The thousands of micro, small and medium businesses that operate in these sectors, many of which operate informally, have potential to deliver growth, but they face a difficult business climate; with poor availability of business services, lack of access to finance, cumbersome regulatory impediments, and commodity or sectoral support agencies that are often poorly resourced. The business climate is made more difficult by deteriorating public infrastructure.
PEP-Pacific’s capacity to improve access to finance and to support a better climate for business is well-matched with both the needs and opportunities to overcome impediments to broad-based economic growth in PNG, including opportunities to improve governance in some sectors. This is particularly true in sectors with growth potential, including micro and small enterprises operating outside the formal sector, niche agribusinesses, fishing and tourism.
PEP-Pacific’s activity in PNG is therefore focused on: improving access to finance, supporting growth in the tourism sector, fostering a business enabling environment, and supporting the growth of rural enterprises. The work program will also parallel and complement PEP-Pacific’s regional Access to Finance, Business Enabling Environment and Tourism programs.
A permanent office has been established in Port Moresby to oversee delivery of the PNG program and to coordinate with PEP-Pacific’s regional programs and our Timor-Leste country program.
