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With a low penetration rate of below 2%, Papua New Guinea’s insurance sector has significant growth potential. The economy is expected to benefit from a range of new extractive projects and this, coupled with growing awareness about the benefits of insurance coverage, is set to increase demand. However, some notable challenges will need to be addressed to ensure the long-term expansion of the industry. While efforts have been undertaken to modernise the sector in recent years, the legislation governing the industry is not fully aligned with international best practices, and uncertainty remains regarding the division of responsibilities between different regulatory authorities. Despite a host of challenges, efforts to expand coverage across PNG to lower-income households are being made, with micro-insurance a key driver of penetration. This chapter also contains an interview with Raho Samuel, Insurance Commissioner.

Despite a tight supply of foreign exchange and a slowdown in economic growth in 2018, Papua New Guinea’s banking sector remained well capitalised and registered a robust performance, aided by supportive policies from both the government and the Bank of PNG, the country’s central bank. The successful issuance in September 2018 of the country’s first dollar-denominated sovereign bond raised $500m at a relatively attractive interest rate of 8.375%, helping to relieve some of the foreign exchange pressures, while ongoing economic stabilisation efforts supported business growth. Although commercial banks responded well to challenging macroeconomic conditions, their overall performance remains hindered by the lowest loan-to-deposit ratio of any country in the Pacific region, a consequence of PNG’s legacy of community-based mutual credit transactions. Domestic commercial banks remain well capitalised, but they are nevertheless part of a system that is under some strain. This chapter also contains an interview with Loi Bakani, Governor, Bank of Papua New Guinea; and a viewpoint from Mark Baker, Managing Director, ANZ Papua New Guinea.

Efforts to increase public governance are gradually bolstering confidence in Papua New Guinea’s economy, despite national performance being heavily dependent on somewhat-unpredictable extractive industries. These were affected in the first half of 2018 by an earthquake in February, and recovered in the second half when international commodities prices rose. Recovery in liquefied natural gas production and mining operations after the earthquake continued into 2019, yet weeks of political unrest led to the resignation of Peter O’Neill as prime minister in May. Succeeded by James Marape, the former minister of finance, the new coalition government has inherited significant challenges alongside a host of exciting opportunities. This chapter also contains interviews with Dairi Vele, Treasury Secretary; Robert Nilkare, President, Business Council of Papua New Guinea; Paul Barker, Executive Director, Institute of National Affairs; and Stacey O’Nea, CEO, Port Moresby Chamber of Commerce and Industry.

Papua New Guinea’s international profile received a boost when it chaired the APEC forum in 2018, an event that culminated in the APEC Leaders’ Summit in Port Moresby in November of that year. During the meeting, leaders from some of the world’s largest economies congregated in the capital to discuss a host of regional issues. While the business climate is hampered by regulatory obstacles and a shortage of land for development, the high-profile geopolitical event gave the island nation a chance to showcase its maturing economy and areas of untapped potential to more than 20,000 visitors from 21 APEC member states throughout the course of the year. This chapter also contains interviews with Stefano Mocci, Country Manager for Papua New Guinea, World Bank; Stephanie Fahey, Chief Executive, Austrade; Moustapha Magumu, Principal Coordinator for the Pacific Region, European Commission; and Clarence Hoot, Managing Director, Investment Promotion Authority.

This chapter introduces the reader to the different aspects of the legal system in Tunisia, in partnership with Meziou Knani & Khlif. It also contains a viewpoint with Ghazi Meziou, Associate Lawyer, Meziou Knani & Khlif.