Papua New Guinea

Papua New Guinean officials insist that progress in plans to host the 2015 South Pacific Games, which the leadership hopes will showcase the country’s development, are on track. However, security arrangements and the scale of work still to be done constitute formidable challenges.

Recent reports that students in some areas of Papua New Guinea (PNG) are crossing into Indonesia for lessons provided a stark reminder of the challenges the government faces in its bid to improve the education system.

The rapid evolution of mobile technology across Papua New Guinea (PNG) is proving to be a key driver for banks as they step up their efforts to seek out growth in rural areas. Banks’ moves to shift their focus from urban centres to rural areas sits well with the government’s financial inclusion policies, although lenders are likely to face a number of challenges as they look to expand in what remains a predominantly cash-based economy.

As Papua New Guinea’s top banks and financial services firms record healthy profits, citing overall strength of the economy, the government has pledged a broad and ambitious infrastructure development programme in hopes of further boosting growth. However, concerns about the future distribution of an expected resource-driven boom continue to dampen long-term expectations.

The coming years pose considerable challenges to Papua New Guinea’s (PNG’s) agriculture sector as it continues to come down from the record highs it achieved in 2011. However, increased financial support from the government, as well as several planned infrastructure developments, should help the sector keep pace with overall economic growth.

The entry of a new player and an increasingly assertive stance on consumer rights protection by Papua New Guinea’s (PNG’s) telecommunications regulator bode well for competition in the sector. However, a continually evolving playing field and objections to new policies from telecoms operators may create considerable challenges for the regulatory body as it attempts to improve pricing and services.