Investment Trends

Papua New Guinea is on the verge of substantial development with large-scale mining and petroleum projects generating wealth and creating employment for Papua New Guineans in the country. The following table shows the trend of foreign investment in the country between the period 1998 to 2004. The figures for 2005-2006 can be obtained from the Business and Information Facilitation Division.

 

Foreign Equity Investments by Economic Sector (K 'million)

Economic Sector

1998

1999

2000

2001

2002

2003

2004

 

Agriculture

131

190

190

191

194

194

194

Minerals & Petroleum

2,140

2,141

2,141

2,142

2,241

2,176

2,237

Transportation

3

5

7

7

7

5

5

Manufacturing

73

70

88

88

100

144

140

Fisheries

19

19

52

52

52

52

52

Banking/Insurance & Finance

122

122

122

122

113

113

113

Retailing

32

32

32

32

32

32

32

Forestry

102

102

107

112

125

128

126

Hotel/Restaurant

10

10

10

10

10

10

10

Other

123

125

125

126

122

122

140 

 

Total Foreign Equity

2,755

2,816

2,874

2,882

2,996

2,976

3,049

As a % of GDP (nominal)

35.3

31.9

29.5

27.7

25.9

23.4

22.6

 

GDP

7,804

8,828

9,736

10,396

11,569

12,730

13,496

 

Source: Quarterly Economic Bulletin, June 2005 Issue

  

Priority Areas for Investment

 

The manufacturing sector, including downstream processing of natural resources and the manufacture of industrial goods are targeted for greater expansion. Village eco-tourism and large scale resort developments are also targeted. Favourable consideration is also given to development projects that result in some of the following:

 

  • Contributute to economic growth;
  • Create new jobs;
  • Utilise domestic resources, particularly renewable resources;
  • Assist in skills acquisition and technology transfer
  • Expand the volume and value of exports;
  • Develop remote areas of the country;
  • Promote import replacement; and
  • Facilitate increased ownership of investment by citizens.
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