15 June marked a significant milestone for Papua New Guinea as the government officially launched the Special Economic Zones (SEZ) Foundation Policy 2025–2032 during a high-profile ceremony at APEC Haus in Port Moresby—an event hailed by national leaders as a transformative moment in the country’s economic journey.
Hosted by the Ministry of International Trade and Investment in collaboration with the PNG Special Economic Zone Authority, the event brought together national leaders, investors and international partners to witness the country’s renewed commitment to industrialisation, job creation and economic independence.
The policy aims to establish SEZs as the primary vehicle for economic growth and transformation in PNG, enabling sustainable development, large-scale job creation and the elevation of the country to a competitive middle-income economy by 2032.
This vision aligns with PNG’s national development goals, focusing on economic diversification, regional development and the reduction of poverty and inequality—ultimately steering the nation towards economic independence.
A Vision Anchored in Self-Reliance and Reform
In his keynote address, Prime Minister James Marape emphasised the country’s longstanding quest for economic self-reliance and sustainability since independence. He reaffirmed the government’s commitment to providing enabling infrastructure, taking up state equity and collaborating with development partners and stakeholders in the establishment and success of SEZs.
“I urge all key stakeholders and Papua New Guineans to effectively support this policy,” Marape said, adding that the government places a high priority on SEZ development across the country as a practical means to drive economic diversification, industrialisation and rural development.
He also highlighted the competitive incentives to be provided by the government to attract multi-million kina investments into the zones.
For his part, Minister for International Trade and Investment Richard Maru described the SEZ Foundation Policy as “the most important policy since Independence.”
“Our greatest policy failure since 1975 has been our over-reliance on the mining and petroleum sectors and the export of raw materials. That era is over,” Maru said.
Diversification and Investment at the Forefront
He noted that PNG—often referred to as the last frontier of industrialisation due to its vast natural resources—is now committed to unlocking its full economic potential through diversification. This includes tapping into downstream manufacturing, fisheries, forestry, large-scale agriculture, tourism and other non-extractive industries.
“With special economic zones as our vehicle, we will chart a bold new course toward economic independence within the next 20 years,” he added.
Maru cited the Philippines as a successful case study, noting that the country started developing SEZs 50 years ago and now boasts 420 SEZs, four million jobs and annual exports valued at USD 68 billion. “PNG missed the opportunity, but now we begin the reset,” he said.
The minister projected that the PNG’s special economic zone policy could generate over one million jobs, attract billions in investments and transition PNG’s economy beyond its traditional reliance on extractive industries.
Population Growth Drives Urgency for Change
The rapid growth of PNG’s population further underscores the urgency of the SEZ strategy. According to the Department of National Planning and Monitoring, the country’s population is growing at a rate of 4.8% per annum. From just 2 million at independence, it has surged to over 11 million in under five decades. This demographic trend has intensified development challenges, necessitating innovative and large-scale economic interventions.
Recognising this opportunity, the Marape-Rosso government has positioned SEZs as a cornerstone of its economic agenda. Leveraging PNG’s youthful and expanding population as a competitive asset, the government, through the Ministry of International Trade and Investment, is driving the SEZ initiative as a series of high-impact national projects.
These zones are expected to aggressively promote industrialisation, expand economic diversity and accelerate development at a scale not experienced since independence.
To date, the Marape-Rosso Government has already secured K7 billion in investments across three SEZs. “With seven more licences to be issued, our trajectory is exponential,” Maru said.
Learning from the Past, Building for the Future
Secretary Jacinta Warakai-Manua of the Department of International Trade and Investment (DITI) said the policy would serve as a guide for all stakeholders – whether government agencies, private investors or local communities – to ensure collective support for the government’s Special Economic Zone Development Program agenda through a coherent and well-coordinated approach, and to ensure the benefits of SEZs are fairly distributed across the country.
The DITI as the policy arm of the Ministry will provide policy oversight, as well as the coordination and monitoring in collaboration with the SEZ Authority and other key stakeholders.
To ensure clarity and consistency, the policy is structured in an “SEZ-specific format” that aligns with international best practice, as seen in SEZ policies across Asia, Europe and Africa, Warakai-Manua explained during her speech.
This globally recognised approach, according to the DITI secretary, not only strengthens the credibility of the policy but also enhances its adaptability for international investors and development partners.
Moreover, the order of presentation within the policy has been deliberately aligned with the corresponding sections of the already enacted SEZA Act 2019, making it easier for stakeholders to reference and align regulatory provisions between policy and legislation, the official added.
Special economic zone is not a new concept to PNG, with similar concepts already existing for about 30 years. This includes the Malahang SEZ in Lae in 1993 and Ulaveo SEZ in East New Britain, and the Free Trade Zone in Vanimo, the Pacific Marine Industrial Zone (PMIZ) in Madang, and the recently launched Konebada Petroleum Park.
PNG has also allowed the development of the Tourism SEZ by Paga Hill Development Estate, and the Manus SEZ and the Gazelle Aoro Industrial SEZ in East New Britain Province established by legislation. However, PNG failed to deliver on the projects, except for the Malahang SEZ, according to Minister Maru.
“We must learn from our past mistakes and develop a new policy and regulatory framework to anchor SEZ development in our country based on world-class models that are very successful,” Maru said.
Maru, sharing his recent visit to Indonesia, highlighted the economic potential of SEZs, particularly in the extractive industries and the fishing sector. He said that plans are underway to replicate this through the PMIZ in Madang, which will soon be rebranded as the Integrated Energy SEZ.
“PMIZ aims to host up to 10 canneries and employ 100,000 Papua New Guineans,” he said, adding that a single nickel-processing SEZ in Indonesia supports 80,000 workers.
The launching event concluded with renewed commitment from all sectors of government and stakeholders to fully implement the policy, overcome bottlenecks and drive inclusive economic growth.
