Businesses Confident in Investing in PNG and South Pacific
“Announcements by investors in Papua New Guinea and the South Pacific has demonstrated a strong international investment intentions that will lift economic activities for PNG and the South Pacific in 2022,” says BSP Group General Manager Corporate Bank, Peter Beswick.
According to the BSP Pacific Economic and Marketing Insight for December Quarter, 2021, the improvement in business confidence for year 2022 is due to business investments, mergers and acquisitions in PNG and the South Pacific.
Beswick said: “The mining companies continue to be an attractive investment destination. Growth in mining industry is estimated to be 5.4%, which reflects the expected recommencement of the Porgera and improvements in OK Tedi production and Wafi Golpu this year, 2022.”
“The merger of Santos with Oil Search and the reopening of the Porgera mine, coupled with the PNG Government commitment to accelerate and support opportunities and development outcomes of Wafi Golpu mine in Morobe Province will deliver significant investments with landowners and local businesses in PNG,” added Mr Beswick.
Furthermore, Telecommunication companies are also anticipating investments opportunities in PNG and the Pacific. The Telstra AUD2.1 billion acquisition of telecommunication giant Digicel Pacific, and also the Vodafone PNG - Amalgamated Telecom Holdings Ltd which operates across Fiji, Western Samoa, American Samoa, Kiribati, Cook Island and Vanuatu have commenced operations as the third mobile operator in PNG anticipating investments exceeding PGK1.4 billion.
Despite the pandemic posing a significant downside risk on businesses, infrastructure and election related spending in PNG would likely provide some uplift, as well as the resource mining and communication projects boost.