Currently, Papua New Guinea imports most processed food, clothing and footwear and most of the inputs to industry and commerce.

However, there are potential investment opportunities in downstream activities.
Whilst the manufacturing sector’s contribution to the national GDP maybe lower than other economic sectors of the country, the sector indeed plays a vital role in the lives of the majority of the country’s population.

The Government of Papua New Guinea has put into place strong policies which will lead to the development of a strong domestic production base to replace reliance on the non-renewable resource industries such as mining and petroleum.

The Government seeks to generate greater domestic production of most basic consumer and industry needs. As such, incentives and concessions are granted to businesses with a policy of import substitution.

A concerted effort is being applied to address problems the industry has experienced. Infrastructure improvements and lowering of input tariffs would greatly reduce production costs.

The manufacturing industry has been urged to adopt cost-reducing, efficient techniques on the factory floor and within management to prepare itself for foreign competition when protective tariffs are phased out.

The Manufacturers Council of Papua New Guinea (a private sector organisation) promotes the manufacturing and downstream processing in Papua New Guinea.