Prime Minister James Marape has assured international and local investors that Papua New Guinea remains committed to building a diversified economy anchored on Special Economic Zones (SEZs), while upholding the rule of law and guaranteeing strong returns on investment.
Speaking at the Second PNG SEZ Summit in Port Moresby, Mr Marape apologized for his late arrival after making a historic road trip to Alotau from Port Moresby, and before than remote Kotidanga in Gulf, highlighting the government’s drive to connect the once-isolated national capital to the rest of the country.
“Port Moresby has remained one of the world’s most disconnected capitals. For the first time in 50 years, road connections are reaching Port Moresby and linking it to Alotau and Lae,” PM Marape said.
“These connections symbolize the bigger vision we have—connecting our economy, opening opportunities, and ensuring development reaches every part of our country.”
The Prime Minister said PNG’s economy had grown from K79 billion in 2019 when he took office to about K132 billion today, with a long-term target of reaching K200 billion before 2035.
“Since independence in 1975, we have over-relied on the mining and petroleum sectors. But for the first time in decades, the non-resource sectors of our economy have grown at around 4% annually for four years in a row.”
He credited SEZs as central to the government’s strategy of encouraging manufacturing, value-adding, and import replacement. To date, four SEZs have been licensed, including Paga Hill, Pacific Cement Lime, Sea Park, and Caution Bay, with more in the pipeline.
“We want investors who are replacing imports to receive extra support from government. If you are manufacturing here and saving us foreign exchange, you are our priority,” Mr Marape stressed.
He reassured investors that PNG respects agreements and provides a safe, democratic environment for business.
“We may not like every agreement signed in the past, but as a government we do not tear up contracts. We honor them until they expire. That is the confidence investors need,” PM Marape said.
He highlighted ExxonMobil and Steamships as examples of long-term investors that have thrived in PNG for over 100 years, adding that returns on investment in Port Moresby outpace those in Sydney or Beijing.
“Property investors in Port Moresby recover their investment in 12 years, compared to 40 years in Sydney or 30 years in Beijing,” he said.
The Prime Minister also pointed to judicial reforms underway, including the establishment of an independent appeals court and international arbitration and mediation mechanisms to strengthen investor protection.
He noted PNG’s unique environmental position as one of the world’s largest carbon-negative countries.
“With over 100 million metric tonnes of carbon sink capacity against just 10 million tonnes of emissions, PNG can guarantee investors a ‘green label’ on their products made here,” Mr Marape said.
“This is a competitive edge in today’s environmentally conscious markets.”
The Prime Minister said the SEZ initiative is part of a broader vision to grow PNG into a K500 billion economy by 2045, backed by about 20 proven petroleum and mineral projects and downstream opportunities in agriculture, fisheries, and forestry.
He urged investors not to leave the country without forging partnerships with local businesses.
“You will make more profit here than anywhere else if you work with local contractors and partners,” Mr Marape said.
“Our free market economy, independent judiciary, and growing regional markets in Asia make Papua New Guinea one of the most attractive destinations for investment.”
The Prime Minister also underscored PNG’s growing role in the international arena, noting its membership of APEC, ASEAN (soon to be full), and the Pacific Islands Forum, while maintaining strong ties with Australia, China, ASEAN neighbors, and the wider Indo-Pacific.
“With the United Nations Secretary-General arriving on Tuesday, it shows Papua New Guinea is not just open for business but is a nation that matters globally,” PM Marape concluded.