PNG to gain from Asia

Business, Normal

The National, Wednesday October 16th, 2013


With Asia’s growing demand for Papua New Guinea’s resources and agricultural commodities the nation stands to benefit from the bonanza, ANZ Bank said in a report.

According to ANZ’s report launched in Port Moresby yesterday, PNG could earn US$437 billion (K1 trillion) by 2030 from such exports.

But it can achieve such revenues only if it can first attract and implement US$119 billion in capital investment, chiefly in infrastructure, the report said.

The ANZ-commissioned report viewed the resources sector as having a role in generating the wealth needed to invest in infrastructure, and support agricultural development that could offer the jobs needed for sectors such as coffee, cocoa and palm oil. 

Key findings of the report:

  • PNG’s resources sector has the potential to grow export revenues at least fourfold to US$23 billion (K55.5 billion) per annum by 2030;
  • The natural resources export opportunity will require an estimated US$112 billion (K270.5 billion)  in capital investment to 2030;
  • Natural resources have a key initial role in generating the wealth needed to invest in infrastructure and to create an environment for agricultural development;
  • Agriculture is a longer-term opportunity, which can drive sustained growth by facilitating agribusiness entrepreneurship and business scale; and
  • Essential infrastructure improvement can be achieved through a fresh approach to delivery through prioritisation, private sector involvement and improved governance.  

“Most high-growth countries developed and relied on multiple sectors at once,” the report said.