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Baker: Allow Agriculture and Manufacturing to Thrive
by PNG Business News - June 01, 2021
Photo Credit: Oxford Business Group
According to ANZ PNG managing director Mark Baker, the country's long-term survival rests on diversifying its economic base to allow agriculture and manufacturing to thrive.
Baker stated that it will need increased investment in infrastructure, particularly roads and power.
“The source of that significant investment can come from the economic benefits that major resources do bring,” he told The National. “The announcement of progress on Papua LNG is very welcome.
“It will be important that all parties involved in the project reach an agreement early to allow the project to enter front end engineering and design (Feed) in 2022 and final investment decision (FID) in 2023.
“This has the potential to make a significant and positive impact across the PNG economy from 2023 onwards.”
Baker said that the Wafi-Golpu project has the potential to have a significant and good impact on the economy in general and Morobe in particular, "as well as strengthening international investor confidence."
While foreign currency reserves have remained reasonably stable, he said the availability of foreign currencies to the market remained a challenge for PNG's import-dependent economy.
“This was exacerbated by the extended shutdown at Porgera which is a major supplier of foreign currency to the market.”
Governor Loi Bakani of the Bank of PNG (BPNG) has stated that the country's foreign reserves are at US$2.5 billion (K8.92bil).
Foreign exchange inflows this year, according to Bakani, were mostly from overseas government borrowings, while outflows were mostly from overseas government debt repayments.
Luma, Dale. The National (27 May, 2021). “Expanding economy for agri, manufacturing vital”.
PNG Business News - February 04, 2021
Coffee Needs to be Marketed Better to International Consumers
During the signing of the memorandum of understanding between the Pacific Horticultural and Agricultural Market Access Plus (Phama Plus) and the Coffee Industry Corporation (CIC), it is emphasized that marketing needs more attention in the exportation of coffee to the international market.While Rachael McCarthy of the New Zealand High Commission is happy to support the PNG coffee farmers, Joshua Kaile of the Australia department of foreign affairs said that they recognise the significance of agriculture in the coffee industry. CIC general manager Steven Tumae looked at the need for more exposure. “The MoU is a partnership agreement between Phama and ourselves (CIC),” he said. “It’s basically to do with Phama Plus helping us with the marketing of coffee overseas. We’ve been putting a lot of money into the coffee industry but there has not been enough help. We are hoping that Phama can train people in the industry. We’ve also asked them to help set up quality control grading labs in certain areas throughout the country.”Pharma Plus gives targeted assistance for Pacific Island countries to work on their regulatory aspects linked with primary and value-added products. This involves accessing products into new markets.
PNG Business News - January 29, 2021
Extension Services Must be put in Place, Says Agriculture Minister
To support local farmers to encourage them to take part in cash cropping, extension services in agriculture into rural areas must take place.This was according to the Department of Agriculture and Livestock (DAL) Minister John Simon who said that the country needs 400 agriculture extension officers.“Many farmers are trying their best to sustain their farms and to keep them going but they are faced with mounting challenges from pests to field management, harvesting and treatment,” he said. “When these farmers struggle alone without expert advice, they will give up and move on to something else. This affects production that we have over the years with cocoa and coffee as well as others.”Simon said that this was part of boosting the economy. He added that he had already encouraged Coffee Industry Corporation (CIC) and Cocoa Board to invest more in extension service work. “Go out to farmers in the rural areas and establish why they have abandoned coffee and cocoa plantations so that you can see the real problems and solve them,” Simon said, saying that the Board needs to be more effective.“Get more extension officers out to districts and local level government areas where the farmers are and help them so that more is produced to supply the markets overseas.”Simon said that in the last two decades, work for the extension officers gradually diminished.
PNG Business News - February 10, 2021
Marape: Commodity Cost Support Programme Will Support Coffee Market Costs
In a recent visit to Jiwaka, Prime Minister James Marape said that the commodity cost support programme will support the current coffee market costs.Following the initial K50mil allocated last November, Marape said that the programme will receive K200 million each year. Through the Coffee Industry Corporation (CIC), the government has already allotted K10 million. Marape said, “This funding will support the current market price to be fixed at K6 per kg for Arabica coffee, K5.50 for Robusta coffee and K2 for Cherry coffee.Meanwhile, Agriculture and Livestock Minister John Simon said the CIC is going to work with five registered coffee dealers in Jiwaka who pay the price of cherry at K2 per kg and coffee at K6 per kg. CIC acting chief executive officer Charles Dambui expressed his gratitude to the Government for the price support. “In the past, price support was executed at the free onboard price (green bean price) where only exporters benefitted,” he said. “We are now changing the approach.”He added that the implementation phase was very important in the success of the programme and in looking after its sustainability.
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PNG Business News - June 15, 2021
PNG Vanilla Company Partners Expo2020 Team
Dr. Nancy Irwin (left) with the Deputy Commissioner General for Expo2020 and Head of the PNG Expo2020 Secretariat, Mrs. Jacinta Warakai-Manua began the partnership to tell the PNG Vanilla story in Dubai, by exchanging ideas in Port Moresby last week. A vanilla production and export company is partnering with the PNG Expo2020 Team to promote their products in the Dubai World Exposition that starts in October this year. KAMAPIM, a company working with landowners in the Madang and Morobe Provinces produces top quality vanilla beans and is already exporting to the EU market. The Managing Director of the company Dr. Nancy Irwin, met with the PNG Commissioner General to Expo2020 Ambassador Joshua Kalinoe and his Deputy Mrs. Jacinta Warakai-Manua in Port Moresby last week to firm up the arrangements. Dr. Irwin said Kamapim (pidgin for develop and to improve) concentrates its efforts in producing the best quality bean for the international market through quality assurance production methods. “PNG farmers can grow anything, they have instinctive ability to grow well any crops. When I first started the project, the quality of the beans were poor, full of fungus due to lack of processing knowledge. We saw huge potential of the organically grown beans and started working with landowners through a cooperative production and marketing structure to improve quality” “The company provide extension services to farmers and buy the beans directly, ensuring farmers are paid a fair price for their efforts”, she said. Dr Irwin said the beans are tested internationally and are consistently classed as the top-quality A grade level. “While PNG has a good perception of growing environment friendly organic vanilla beans, the challenge is for the relevant Government authorities to work with farmers to improve quality. I believe the cooperative production methods applied by our company, Kamapim, could be used nationally as one of the models to improve quality for the export market as well as to maximize revenue gain for farmers”, Dr. Irwin said. She said the company is looking forward to partnering with the PNG Expo2020 Team to tell the PNG story and to connect with niche importers in Dubai and the Arab world in general. Dr. Irwin said the company would promote its products in specially branded PNG Expo2020 containers to create visibility for the country as well as to preserve quality at the company’s cost.
PNG Business News - June 15, 2021
PNGEITI Praises Open Dialogue to Reopen Porgera Mine
The PNG Extractive Industries Transparency Initiative (PNGEITI) has praised the open stakeholder dialogue culminating in reaching consensus to re-open the Pogera Mine in Enga. Parties in April this year sanctioned a “Framework Agreement for the New Pogera Project” which spells out the roadmap to reopen the mine. Mark Bristow, CEO and President of Barrick Gold last week explained key elements of “Framework Agreement for the New Pogera Project” at a public forum at the Piam Oval in Pogera witnessed by PNG Prime Minister James Marape, landowners and other leaders. In the new agreement, PNG stakeholders will together own a 51 % equity stake in the mine while Barrick Niguini Limited (BNL), a joint venture company in which Barrick and Zijin Mining Group each own 50% will hold 49 %. BNL will remain the mine operator. At the end of the first ten year period, the PNG stakeholders will have the option to purchase BNL’s 49 % PNGEITI Head of Secretariat Lucas Alkan remarked that the open discussion throughout the negotiation process on the part of the mine operating lead, Government and landowners has culminated in this agreement signed happily by all parties. “We at the PNGEITI congratulate the Government and the project lead Barrick Gold and other stakeholders for reaching a consensus decision to reopen the mine. “Pogera has been an economic powerhouse for many years and people in the country have been waiting for the outcome. “We commend the Prime Minister, the President and CEO of Barrick Gold Mr. Mark Bristow for the leadership in ensuring that the negotiations were done in the transparent and open manner. “PNG Extractive Industries Transparency highly encourages such openness in the negotiating process for resources benefits and importantly the responsibilities that each stakeholder must take on to ensure smooth flow of proceeds. “We look forward to working with the Government and the project operator in the areas of transparency and accountability to help derive best value for all stakeholders. PNGEITI commitment to reporting on developments in the mining and petroleum space is becoming stronger with new reporting dimensions taking shape as we making progress in promoting transparency and accountability in the PNG mining and petroleum industry” Mr. Alkan said.
PNG Business News - June 14, 2021
BPNG Goes For Review
Treasurer Ian Ling-Stuckey has revealed the terms of reference for a review of the Bank of PNG, as well as the members of the review panel. Former Chief Secretary Robert Igara will lead the study, which was planned in the Supplementary Budget for 2020. Former central bank governor Sir Wilson Kamit and Australian professor Dr Stephen Howes are the two members. “These very eminent people, all of whom have detailed experience of the PNG financial system and reform, will be working to a term of reference approved recently by the NEC,” Ling-Stuckey said. “It is the first review of the central bank and the Central Banking Act 2002 since Sir Mekere Morauta’s financial system reforms when he was prime minister from 1999 to 2002. “Much has changed since then, and the effects of the coronavirus pandemic, along with substantial technological advances, have made the need for a review even more urgent. “The aim is to modernise the bank and the legislation in line with international developments, and make it more responsive to prevailing circumstances while preserving its independence.” The study is scheduled to be finished in time for Parliament's November session. “An independent advisory group was also established by the late Sir Mekere when looking at the changes that led to the Central Banking Act 2000,” he said. “Igara, currently the University of Papua New Guinea chancellor, was chief secretary at the time, and Sir Wilson was the governor of the Central Bank. “Prof Howes, head of the Development Policy Centre at the Australian National University, has long been involved in PNG research and advice and consultation, particularly in relation to national development.” Reference: The National (8 June 2021). “BPNG going for review”.