Photo: Minister for Trade and International Investment, Hon. Richard Maru
Special Economic Zones are a launching pad for economic development in the country, and the current government has taken a decisive stance under the leadership of current Prime Minister James Marape by setting up and legislating 18 SEZs in 2019.
This policy was the brainchild of PM Marape right after taking office in a successful vote of no confidence against the former Peoples National Congress (PNC)-led government.
The remainder of that period leading up to the 2022 general election was spent on identifying the different SEZs around the country.
In this fact-finding mission to identify suitable land available for massive agroeconomic projects, 18 potential agricultural hubs were identified across the country in certain provinces.
These 18 economic zones include Kokopo Tourism Zone, Tokua Airport City SEZ and Gazelle Agro SEZ (East New Britain), Sepik Plains SEZ (East Sepik), Vanimo Free Trade Zone (Sandaun), Central Province Rice Zone, Baiyer Agriculture Zone (Western Highlands), Karamui Agriculture Zone (Simbu); Middle Ramu Economic Zone and PMIZ (Madang), Western Province SEZ, Labu SEZ, Nadzab Airport City SEZ and Lae- Nadzab SEZ (Morobe), Ihu SEZ (Gulf), and Manus Special Economic Region.
At the same time, a new ministry responsible for this massive initiative to transform the economic landscape of the country was established as the Ministry of International Trade and Investment. It is currently held and led by MP for Yangoru-Saissia Richard Maru.
Minister Maru announced last December that Papua New Guinea’s new journey to achieve economic independence and transformation has begun. Enough talk of SEZs has already been done and it was time for “action and implementation”.
"We want to start bringing investors to start establishing the SEZs by 2023 so we can create jobs for our people and transform our economy. Our over-dependency on the resource sector has left us where we are now – the highest level of unemployment, the highest level of deficit, the highest level of national debt, and the highest level of lawlessness,” he said.
“A draft master plan will be presented in April (2023) when PNG hosts its very first SEZ Summit in Port Moresby, where all SEZ experts from around the world will come together to share their stories and experience on how their countries used SEZs as a vehicle for economic growth.”
“These experts will be allowed to comment and put their input in the draft master plan before it is finalized and presented to the Government for approval and implementation,” said Minister Maru.
As the initial idea to legislate and formulate its framework is all good, much is left to accomplish in the actual implementation phase, he said. “This is a new policy directed under the new government and we cannot compare this to past government policies such as the controversial Pacific Marine Industrial Zone (PMIZ) in Madang and the Konebada Petroleum Park in Central.”
The only difference this current government will make is by using the five-year mandate to develop these 18- SEZs to accommodate agro-economic projects that will directly substitute imports and enable the export of any surpluses to our Pacific neighbors under the Pacific Islands Forum (PIF) and Melanesian Spearhead Group (MSG) trade agreements and treaties, Mr. Maru said.
The onus of developing and realizing the full potential of these SEZs depends on the support of host provincial governments and district development authorities (DDAs) concerned, he added. The counterpart funding put in by Provincial Governments and DDAs to support SEZs in their areas would be reimbursed as announced by PM Marape.
The projects will benefit the host provinces in increased internal revenue, employment, transfer of technical knowledge and skills, and other local SME spin-off benefits. Therefore, if Papua New Guinea is to become fully economically independent by 2050, prioritizing and developing these SEZs is the way forward, Mr. Maru said.
The Ministry of Trade and International Relations should check on the status of the proposed land that is to be developed under the SEZs and facilitate and transfer all titles to the respective SEZs to take custody of each of the selected 18 sites.
They would be independently assessed, valued, and demarcated for these purposes, and to consider as state leases to add onto the meager 3 percent of alienated land under state ownership, Mr. Maru said.
The Prime Minister's announcement of purchasing land to expand towns, cities, and district boundaries is the right direction that can also include the SEZs, he added. “The long-term effect of these developments would enormously benefit Papua New Guineans in various other ways in many years going forward.”
