Papua New Guinea has lost its investor confidence
A single day lawlessness in the nation’s capital on 10th January has destroyed months and years of marketing PNG as an investor destination.
Prime Minister James Marape admits companies wanting to invest Millions-of-Kina are now hesitant.
“I went to China securing investors in downstream processing space, last week Wednesday [10th January] riots chased away three investors in the forestry and fisheries sector,” Mr Marape said.
The prime minister’s reshuffle to his cabinet last week aims to bring back that trust.
Mr Marape said his government priorities to grow the economic sector, to create employment and diversify the revenue base for the country has not changed.
Meanwhile, the Institute of National Affairs executive director Paul Barker said the government must “address the underlying factors” of lowering the cost of doing business in PNG, to attract foreign companies.
“Existing and potential investors hesitate [to invest], they find it hard to get insurance and finance and decline to risk their own capital, if they invest they invest in low risk activities [sectors] and it is important different partners work together to restore the PNG brand.”
Mr Barker further challenged the government to cut down on excessive traveling and prioritise monies into addressing the core challenge faced by ordinary Papua New Guineans.