Photo Credit: BSP
According to Bank South Pacific Group Ltd chief executive officer Robin Fleming, foreign direct investment (FDI) will play a key part in Papua New Guinea's recovery from Covid-19.
“Bank of PNG data indicates that in 2020 FDI flows into the country will be reduced by 66 per cent to K387 million from K1.1 billion in 2019,” Fleming said.
“This statistic, however, does not reflect that the level of international investor interest increased in 2020 and that one of the key challenges is converting that interest into definite projects.
“It is promising to see a number of opportunities for businesses going forward.
“For example, PNG businesses can participate in Government infrastructure initiatives such as the Pacific step-up partnership between the PNG and Australian governments where K582 million has been committed.”
Other examples, according to Fleming, include the K1.1 billion national port rehabilitation program; the PNG electrification partnership with Australia, Japan, the United States, and New Zealand, which aims to connect 70% of PNG's population to electricity by 2030; and the ongoing Nadzab Airport Redevelopment worth K692 million by the Japan International Cooperation Agency (Jica) and the National Airports Corporation (NAC).
According to him, the mining, oil, and gas industries received the majority of foreign direct investment.
Some key factors to consider when reviewing an FDI proposal, according to Fleming, are the net economic benefit and alignment with national interests, such as the potential for the positive development of human and natural resources; creation of jobs and other income-earning opportunities; technology and skill transfer; and contribution to training Papua New Guineans.
“This screening process highlights the government's continued focus on developing a supportive environment for businesses to grow and attracting FDI.”
According to Fleming, the PNG Investment Conference, which will take place in September, is one of the most important conferences that has enhanced PNG's reputation on the international arena.
“The platform is a great way of promoting PNG’s business and investment opportunities.”
“Over the three-day event, a line-up of distinguished panellists will cover a number of key topics,, ranging from PNG’s place in a post Covid-19 world and the prevailing investment climate to important industry trends and major project updates.”
Reference:
The National (21 July 2021). “Foreign direct investment to help PNG recover from Covid effects”.
