According to the BSP’s Quarterly Pacific Economic and Marketing Insight for the fourth quarter of 2021, business confidence in Papua New Guinea and the South Pacific will see a rise in 2022. This is primarily attributed to mergers and acquisitions, and company investments in the region.
Peter Beswick, BSP Group General Manager Corporate Bank, said, “Announcements by investors in Papua New Guinea and the South Pacific has demonstrated a strong international investment intention that will lift economic activities for PNG and the South Pacific in 2022.
“The mining companies continue to be an attractive investment destination. Growth in the 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,” Beswick said.
“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.”
Another sector interested in the region’s potential is Telecommunications. For example, Vodafone PNG – Amalgamated Telecom Holdings Ltd has recently invested over K1.4 billion to become Papua New Guinea’s third mobile provider. The company already operates in Western Samoa, American Samoa, Fiji, Vanuatu, Cook Island, and Kiribati.
While the pandemic remains an issue and may cause ongoing concerns for businesses, resource mining, telecommunications, and infrastructure sectors are likely to provide relief and build confidence.
