Papua new guinea advantage conference a 'great success'
Brisbane, Australia, 5 August 2011
August 18, 2011
Opened by Queenland Treasurer Andrew Fraser and Papua New Guinea's Acting Minister for National Planning and Rural Development, Moses Maladina, the Papua New Guinea Advantage Conference of 5 August 2011 has been acclaimed a great success by both delegates and the event's organisers.
Over 150 delegates attended the one-day conference at Brisbane's Convention Centre, which was designed to give business people a thorough introduction to doing business in Papua New Guinea (PNG), the Pacific's fastest-growing economy, and also highlight specific investment opportunities.
Positive feedback
The conference received overwhelmingly positive feedback from delegates, with the following comments typical:
- 'It was a well-organised event and the content was excellent.'
- 'Congratuations on an excellent conference.'
- 'There are clearly some tremendous opportunities ... All the speakers presented very well and I think it was a good and balanced mix ... I got a lot out of it.'
- 'Very well organised. A lot of the information wasn't the kind you can get by Googling or doing desktop research.'
- 'Great numbers and excellent speakers.'
'Our goal was not to try and duplicate the existing business networking events on Papua New Guinea, but to provide a very focused, content-rich briefing for Australian investors, and also provide an opportunity for them to connect with potential partners in PNG,' said Andrew Wilkins of co-host Business Advantage International, the day's MC. 'Encouragingly, we've already facilitated some exciting conversations.'
Historic first taste of new government
Due to the recent political changes in Papua New Guinea, the event provided Australian delegates with the first opportunity to hear from a representative of the new O'Neill Government. In his opening address, Moses Maladina emphasised PNG's economic transformation over the past decade, while acknowledging that the PNG Government needed to 'lift its game' in delivering a conducive business environment.
Queensland Treasurer Andrew Fraser responded by emphasising the close historica land economic links between Papua New Guinea and the State of Queensland. Fraser also highlighted the positive energy that was emanating from PNG as it grew: 'PNG is a place which knows it has lots to look forward to. It knows the power of optimism.'
Strong economic indicators
The day was divided into four sections, starting with an up-to-date overview of PNG's economy and the transformation it is undergoing. This was followed by a session on how to do business in PNG and another on the specific opportunities the country has to offer across several sectors. Finally, delegates received advice on the support available to companies seeking to enter the PNG market.
There was encouraging news in the first session. Loi M Bakani, Governor of the country's central bank, told delegates that PNG's economy is scheduled to grow by 9.6% in 2011, with employment growing at 8%. With the Government due to deliver a 606.8 million kina surplus this year and reserves providing 11 months' import cover, the economy was in good shape, he said. However, inflation (currently running at 9%) needed to be watched to ensure that PNG benefitted fully from the current boom.
Ian Clyne, CEO of BSP (PNG's largest retail bank), provided a exciting overview of the changes that have occurred in PNG's economy over the past decade, especially growth of the business sector and the rise of a new middle class. Bank retail lending had doubled since 2006, he said, and PNG's potential was 'incredible.'
Strong case studies
Delegates then heard from several PNG-based companies which have grown strongly over the past five years, including superannuation fund NASFUND and telecommunications company Digicel PNG. NASFUND joint CEO Rod Mitchell spoke of PNG's booming real estate sector, currently delivering returns of around 10-11% per annum, and of the fund's recent investment in agribusiness. Digicel's John Mangos told delegates that PNG's mobile networks now covered 75% of the population, with 31% of Papua New Guineans now owning a mobile phone. An increasing number of services can and are being delivered to the population via the mobile phone network.
Delegates were also given solid briefings on doing business in Papua New Guinea. Wayne Dorgan of insurer Pacific MMI spoke on managing risk; Deloitte's David Murray spoke on navigating business regulation; and Westpac PNG's Ashleigh Matheson spoke about what makes a project bankable in PNG.
Business inspiration
The afternoon session was kicked off by an inspiring and enthusiastic Mahesh Patel, who arrived in PNG as a young man with '$35 and a Gary Glitter shirt' and now owns and runs City Pharmacy Limited, one of PNG's most successful listed companies. He spoke persuasively of the country's business potential, as did Vishnu Mohan of ANZ, who conducted a SWOT anaylsis of the PNG economy and concluded that PNG's macroeconomic indicators were 'very strong'.
Infrastructure development is a major area of focus for PNG and Laure Darcy of the Asian Development Bank (which has US$500 million in infrastructure investments in PNG), outlined some of the key projects and opportunities, including public-private partnerships. Likewise, Greg Anderson of the PNG Chamber of Mines and Petroleum gave the conference an overview of the exciting opportunties currently occurring in PNG's booming resources sector.
'Papua New Guinea has the potential to become a mining nation like Canada and Australia - and to be so for centuries,' he enthused.
According to Austrade's Kevan Dacey, over 4000 Australian companies are already exporting to PNG but there were still considerable opportunities to supply equipment, services and technologies. It was essential to be hands-on in your marketing and make regular country visits to succeed there, he advised.
Taking the next step
In closing the event, Clarence Hoot of the PNG Investment Promotion Authority and David Conn of co-host the Port Moresby Chamber of Commerce and Industry outlined how they assist companies to take the next step and enter the Papua New Guinea market.