Huge future, bank says

 By SHIRLEY MAULUDU

PAPUA NEW GUINEA’s resources sector has the potential to grow export revenue at least fourfold to US$23 billion (K55.8 billion) per annum by 2030, ANZ group chief executive Mike Smith said.

Speaking during the Port Moresby Chamber of Commerce and Industry breakfast in Port Moresby last Friday, Smith said the natural resources export opportunity would require an estimated US$112 billion (K271.7 billion) in capital investment to 2030.

Smith said the Bold Thinking report commissioned by ANZ found out that agriculture is a longer-term opportunity that can drive sustained growth by facilitating agri-business entrepreneurship and business scale.

“Essential infrastructure improvement addressing the significant challenges which exist in the energy supply can be achieved through a fresh approach to delivery through prioritisation, private sector involvement and improved governance.

“As well as taking a different time-frame and approach, we saw the opportunity to put achievement of balanced economic development front and centre by extending the report’s focus to agriculture and infrastructure, as well as natural resources.

“Whatever your own view of commodity markets and these projections, I think we all agree that to deliver anything like the resources sector’s potential, PNG needs to be much closer to the head of the queue for global resources investment than it is  at present,” Smith said. 

Meanwhile, he said according to the report, when the Fraser Institute asked investors to rank the attractiveness of PNG’s resources sector against 95 other countries, the country came 73rd.

However, he said when asked to imagine the country with the best practice policy settings, investors ranked PNG third in the world.

“This huge increase occurs because investment risks currently overwhelm PNG’s geological and geographic potential.

“The gap illustrates why PNG has to urgently refocus its national discussion on lowering actual and perceived investment risks, and on skills development and transfer from the growing resources sector.”