Photo: IPA Haus
There have been many divestments and reinvestment in the country by foreign enterprises in past years, according to the Investment Promotion Authority (IPA).
According to IPA managing director Clarence Hoot, 165 foreign enterprise certificates were awarded for the first half of this year as opposed to 364 for the entire previous year.
“We are seeing that some foreign enterprises have diversified their activities, and have applied for variations, that include new activities or changing of locations,” he said.
“The effects of the lack of foreign currency, the business had a lot of money to invest.
“We are seeing in our certification process divestments, reinvestment.
“Companies in Port Moresby are investing in Mt Hagen, Kokopo.
“They are moving to other provinces in the same line of business as well as into other business activities.
We hope this continues.”
The Coronavirus (Covid-19), according to Daroa Peter, director of the IPA Investor Servicing and Promotion section, also had a role.
“Due to Covid-19, the borders closed so companies decided to move within the country.”
According to Hoot, the number of distinct entity types registering with the IPA has increased.
At the end of June, the IPA registration included:
- ASSOCIATIONS – 810 registered in 2021 and 373 registered at the end of June, 2022;
- BUSINESS GROUPS – 641 registered in 2021 and 531 registered at the end of June, 2022;
- BUSINESS NAMES – 23,484 registered in 2021 and 12,853 registered at the end of June, 2022;
- COMPANIES – 4,255 registered in 2021 and 2,297 registered at the end of June, 2022.
Reference: The National (25 July 2022). “IPA says number of foreign firms reinvesting in PNG increasing”.
