Photo credit: ABG - Bougainville President Ishmael Toroama
One of the most significant hurdles to economic growth and direct foreign investment on Bougainville is the absence of insurance coverage by insurance companies for enterprises.
Insurance companies in Papua New Guinea have a language in their policies that expressly indicates that they will not cover enterprises operating on Bougainville.
This policy was created due to the unfavorable business environment created in Bougainville as an aftermath of the ten-year civil war 1988 - 1998.
Since the signing of the Bougainville Peace Agreement in 2001, individuals on Bougainville have worked hard to establish a business-friendly environment.
Despite this, insurance companies have shown no signs of giving up and abandoning the egregious policy.
The policy has hampered the expansion of several local firms, which have sought financial aid but been turned down on the grounds that Bougainville lacks insurance coverage and that security dangers exist on the island.
Ishmael Toroama, the President of Bougainville, described the policy as "very unjust and discriminatory" since it singles out Bougainville as the only portion of Papua New Guinea that is not covered by insurance.
“My government cannot be made to wait for these firms to change their insurance policies,” President Toroama said.
“I will be directing the Bougainville Administration to look at possible means for the ABG to offer insurance and a security guarantee for businesses that are interested to invest and operate on Bougainville,” President Toroama added.
“As head of this government I want to extend the Autonomous Bougainville Government’s assurance to any investor who is interested in investing in our abundant resources that we will guarantee your interests on Bougainville,” President Toroama said.
“The government will offer its support and security guarantee to any credible investor that is compliant with our laws and policies,” he said.
“We are no different from any other part of Papua New Guinea except for our political aspirations for an independent Bougainville,” he said.
“We offer a safe and secure environment for investments and we are open for business,” President Toroama said.
Reference: Autonomous Bougainville Government (17 February 2022). “ABG President: Current insurance policy unfair to Bougainville”.
