Prime Minister Hon. James Marape has restated his government’s strong and clear commitment to small and medium enterprises (SMEs), describing them as the “heartbeat of Papua New Guinea’s economic future”, and central to national efforts to grow the economy to K200 billion.
Speaking during the 7th TISA Bank SME Breakfast and Awards Launch in Port Moresby, Prime Minister Marape paid tribute to local entrepreneurs, financial institutions, and stakeholders for driving the SME sector; while outlining key reforms and policies his government has implemented over the past six years to support inclusive, sustainable growth.
“This time in our country’s history calls for Papua New Guineans to believe that they can – not that they cannot. The SME space belongs to those who are willing to work, innovate, and grow,” Prime Minister Marape told a packed audience of entrepreneurs, bankers, government officials, and development partners.
Turning Crisis into Reform and Recovery
Recalling the economic challenges his Government inherited in 2019 — including high commercial debt, a slowing economy, and declining business confidence — Prime Minister Marape said bold decisions had to be taken to stabilise public finances and steer the economy back towards growth.
“We inherited an economy worth K79.6 billion. By 2025, we are pushing beyond K130 billion. Despite COVID-19, global disruptions, and internal challenges, we turned crisis into opportunity by restructuring debt, injecting capital into the economy, and supporting businesses.”
He credited concessional support from key development partners — including the World Bank, International Monetary Fund (IMF), Asian Development Bank (ADB), and bilateral partners such as Australia and Japan — for enabling the Government to refinance expensive debt, including the Credit Suisse loans, and redirect funding into priority infrastructure and social services.
A standout example was a K940 million loan from Japan at an ultra-low 0.01% interest rate, which replaced commercial borrowings with an 8.8% interest rate.
SMEs at the Heart of Growth
The Prime Minister highlighted SMEs as a critical driver of job creation, innovation, and inclusive economic participation.
“That’s why we’re serious about SME support — because these are the people creating jobs, producing exports, and building a future.”
Pro-PNG Economic Reforms and Support Mechanisms
PM Marape outlined a series of key policy reforms and support mechanisms aimed at fostering SME growth and strengthening the overall business environment:
- SME Credit Guarantee Scheme – Assisting entrepreneurs to access credit without traditional collateral.
- State Equity Participation – Supporting import replacement sectors such as rice, beef, and fishing, through strategic co-investment by Government.
- Price and Freight Support Programme – Providing support to farmers and rural SMEs during periods of low global prices and high logistics costs.
- Export Licensing Reforms – Prioritising Papua New Guinean-owned exporters who repatriate foreign earnings, and ensuring licence holders bring value back to the country.
- Zero Tax Threshold – Individuals earning below K20,000 are now fully exempt from personal income tax, putting more money into household consumption.
- GST Removal on Basic Goods – Tax exemption on 13 essential household items to reduce the cost of living and stimulate domestic demand.
Reforming the Foundations: Central Bank, Judiciary, Land, and Anti-Corruption
The Prime Minister also highlighted deeper reforms aimed at building investor confidence and reducing bureaucratic barriers:
- Central Bank Reform – Establishment of a new oversight board, introduction of multi-currency convertibility (notably between PNG Kina and Chinese Yuan), and licensing of new banks to improve competition and access to finance.
- Judiciary Expansion – Doubling the number of national judges from 40 to 80 (eventually to 200), establishment of a dedicated Court of Appeal, and integration of international judges to improve investor confidence and strengthen commercial arbitration.
- Land Reform and Registration – Enabling customary landowners to formally register their land, use it as collateral, and access credit for SMEs and housing development along major highways and economic corridors.
- ICAC Establishment – Activation of the Independent Commission Against Corruption to seal economic “sinkholes” and ensure public funds support honest enterprise and national development.
Investing in Human Capital: Education, Labour, and Productivity
PM Marape reaffirmed his government’s focus on building a skilled and productive workforce through education reform and targeted labour mobility programmes:
- 100,000 School Dropouts Re-Enrolled – Through flexible and open learning initiatives.
- Labour Mobility Scheme Expansion – In partnership with the Australian Government to place skilled Papua New Guineans in overseas employment opportunities with long-term career potential.
- One Million Families into the Cash Economy – Mobilising rural households through agriculture, SME ventures, and targeted financial literacy and entrepreneurship training.
A Call to Action: Owning the Next 50 Years
Marking Papua New Guinea’s 50th anniversary of independence, Prime Minister Marape urged every Papua New Guinean to rise above cynicism and take ownership of the country’s development: “The harvest is plentiful — but the workers are few. Let us stop waiting and start doing. Let us stop asking what the country can do for us, and ask what we can do for our country.”
He concluded by thanking TISA Bank and the nation’s teachers: “To TISA Bank — go out and find the million unbanked families. Support them, empower them, and help grow this country.
“To our teachers — you have shaped generations of leaders. The PNG of today and tomorrow owes much to you.”
