‘SMEs can transform PNG’

 By CARMELLA GWARE

Small and medium enterprises can transform Papua New Guinea’s economy if encouraged through appropriate frameworks and government support, a government officer said.

Secretary of Commerce and Industry John Andrias said the contribution of the SME sector which includes the informal sector and micro-enterprises must not be underestimated in any economy.

“They have played an important role in fostering growth, employment and income in Papua New Guinea, especially in the rural areas.

“We all know that growth based on minerals, petroleum and gas is not sustainable in the long term hence the development of the SME sector is very important if we are to realise sustainable development for the long term and achieve much of the government’s development priorities.

He said three impact projects that would be implemented this year are:

1. Development of a Small and Medium Enterprises Master Plan for PNG;

2. Development of an Industrial Development Plan; and

3. Implementation of the Pacific Marine Industrial Zone.

Andrias said that the informal sector could graduate into the formal economy if given necessary support.

“We have realised that there is no coordination and linkages with state agencies, private sector and non-state actors that deal with SMEs. 

“This has led to wastage of limited resources with minimal impact on the target group.

“Therefore if the relevant agencies dealing with the Informal Sector Act and Policy can agree; I would like the Department of Commerce and Industry to take ownership and see how best the informal sector can fit into the proposed SME master plan.”

Andrias said there was an SME Policy of 1998 but it was outdated and not relevant to the current economic environment.