The PNGX Group Limited, operator of Papua New Guinea’s national stock exchange, has welcomed the strong support of Minister for State Enterprises William Duma for expanding public participation in the local capital markets through the recent sale of BSP Financial Group Limited (BSP) shares.
Minister Duma confirmed that only Papua New Guinean citizens and institutions had purchased the BSP shares previously held by Motor Vehicle Insurance Limited (MVIL) — a move he described as "properly timed and grounded in economic prudence."
“Ownership of these shares in BSP remains within our country, giving the opportunity for everyday Papua New Guineans to own part of BSP,” he said.
In a public statement on 16 July, PNGX said it commends the Minister’s support for investment through PNGX, which is “essential for building a vibrant and inclusive financial ecosystem.”
The group also noted that the approach promotes transparency, strengthens corporate governance, and empowers locals to participate in nation-building through shared economic growth.
The proceeds from the sale, according to Minister Duma, will be reinvested into improving key State-Owned Enterprises (SOEs), especially PNG Power Ltd and Water PNG Ltd, with a focus on enhancing infrastructure and services in Port Moresby and Lae.
“The sale has provided much-needed funding to enhance State-Owned Enterprises as part of reforms to modernise technology and service delivery without having to rely upon allocations from the National Budget and expensive borrowings from banks,” Minister Duma explained.
A prudent sale for national development
The share sale, conducted through JMP Securities Limited, one of the country’s licensed stockbrokers, attracted over 50 Papua New Guinean investors, including individuals, companies and superannuation funds. Duma dismissed speculation about foreign involvement, particularly claims made on social media, saying: “Our people should not be influenced by misleading and baseless allegations.”
Duma also confirmed that Kumul Consolidated Holdings (KCH), the state’s asset manager, will retain a stake of over 18 percent in BSP “to maintain its voice in strategic matters where necessary, while stepping back from material ownership.”
“This divestment is about responsible economic management. It is about transforming state assets into development capital and creating room for the private sector to lead in areas where it has comparative advantage,” he said.
Strategic goals driving the divestment
Minister Duma outlined four key objectives behind the sale:
- Fiscal Consolidation – To reduce pressure on the national budget by financing upgrades to critical services such as electricity and water through the proceeds of the sale rather than loans.
- Portfolio Rebalancing – KCH is reducing overexposure to single commercial investments, ensuring better risk management of public funds.
- Market Development – The divestment promotes broader ownership of BSP shares among citizens and institutions and supports the long-term development of PNG’s capital market through PNGX. KCH recently signed a partnership with PNGX to help SOEs meet Corporate Governance Code requirements in preparation for future partial privatisations.
- Refocusing on Core Functions – The state will concentrate on providing essential services rather than acting as a commercial investor. “Divesting from non-core assets enables us to refocus resources on service delivery and nation-building in priority areas,” the minister said.
He added that reallocating capital from investments like BSP into infrastructure helps “push the production possibility frontier and make gains for the state in terms of Total Factor Productivity (TFP) growth.”
PNGX reaffirms support
For its part, PNGX reaffirmed its commitment to facilitating responsible investment and building a resilient market for PNG’s future.
“We welcome the acknowledgement that the private sector is well positioned to drive innovation, efficiency and ensure long-term value creation. A strong private sector, enabled by a functioning capital market on PNGX, is key to unlocking economic growth and long-term national prosperity,” it said.
With the government’s clear policy direction and the capital markets maturing, experts believe that the stage is set for more citizens and institutions to become active participants in PNG’s economic transformation.
