Forestry sector backs SEZ and industrial park development

The PNG Forest booth display at the SEZ summit at Apec House (Image: Supplied)

The Papua New Guinea Forest Authority [PNGFA] has pledged its support towards promoting Special Economic Zones [SEZ] and forestry-based industrial parks, saying the sector is ready to align with the government’s development vision.

Managing Director of PNGFA, John Mosoro said the authority is committed to working with the Ministry of International Trade and Investment to advance SEZ initiatives that can transform the forestry industry.

“As SEZs develop across PNG, forestry-based industries can bring inclusive growth, especially through downstream processing,” Mosoro said during his presentation at the Second SEZ Summit held at APEC Haus from September 1 to 3.

He added that SEZs offered a unique platform to develop raw logs into high-value products, create rural employment, and open new investment pathways that balance sustainability with economic growth.

Mosoro said timing of the summit, which comes as PNG approaches its 50th independence anniversary, sets a bold vision for long-term public-private partnerships. He also commended Trade and Investment Minister Richard Maru and his department for driving the SEZ agenda.

PNGFA managing director John Mosoro drums up support from foreign investors after his SEZ summit presentation (Image: Supplied)

PNG, home to the world’s third-largest rainforest, has around 46.9 million hectares of forest cover, accounting for 70 percent of the country’s landmass. Mr Mosoro said careful planning was needed to ensure sustainable use of these resources.

According to PNGFA, the forestry sector contributes around K1.2 billion annually to the economy with bout 52 percent of revenue generated going directly to the national government. The sector also provides employment for roughly 10,000 people across the country.

The director said downstream processing will become the central focus of PNGFA, with the government set to ban round log exports by the end of 2025. A gradual phase-out is already underway.

He outlined plans to establish four large-scale regional processing facilities or forest industrial parks, supported by expansions of ten forest estates and existing plantations. Investments are also being directed into research, technology, non-timber products, and forest carbon initiatives.

“PNGFA aligns with the SEZ development reforms as we see the framework and platform for the development of forest industrial parks to be established,” Mosoro said.