Papua New Guinea

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.

Papua New Guinea’s (PNG’s) tourism industry faces another tough year after being passed over for funding in PNG’s record PGK13bn ($6.16bn) budget in November 2012. However, the 2015 XV Pacific Games (XVPG) may give the sector a boost.

While a wave of major resource-related projects in Papua New Guinea (PNG) presents significant growth opportunities for private insurers, concern is rising that industry players could be put off entering the market unless the government takes steps to ensure the public insurance segment is better regulated and supervised.