Papua New Guinea

PSDI is working with the Government of Papua New Guinea to help make PNG a safer, more productive, easier, and more inclusive place to do business.

PSDI is working with the Government of Papua New Guinea to:

  • Increase the availability of private sector credit by supporting the utilization of the secured transactions framework established in 2015, and advising on the introduction of alternative capital-raising platforms;

  • Promote entrepreneurship and foreign direct investment, particularly through providing ongoing assistance and advice to PNG’s Investment Promotion Authority;

  • Improve the efficiency and transparency of state-owned enterprises, by enabling public-private partnership transactions, developing a Community Service Obligation Policy for SOEs, and including PNG in PSDI’s Finding Balance SOE benchmarking studies;

  • Develop the technical and cross-cutting capacity of PNG’s Independent Consumer and Competition Commission;

  • Increase access to finance and financial services, by supporting the development of MiCash (a mobile phone linked bank account) and funding the design of the Microfinance Expansion Project (MEP); and

  • Remove barriers to women’s participation in the formal economy through pilot initiatives helping businesswomen enter the formal economy and helping women professionals reach leadership positions.

Resources and Spending

PSDI’s activities in Papua New Guinea (PNG) have rapidly expanded since 2015 due to an additional $8.08 million in funding provided for Phase III by the Government of Australia. Similar additional funding for PNG has been again committed by the Government of Australia for PSDI Phase IV. These funds are being used to support expanded requests from the Government of Papua New Guinea to improve the enabling business environment across all of PSDI’s work areas: financing growth, business law reform, competition and consumer protection, further support for reforming state-owned enterprises (SOEs), implementing the public-private partnership (PPP) framework, and mainstreaming economic empowerment of women into PSDI projects.

A PSDI coordinator has been based at the Asian Development Bank’s (ADB) Papua New Guinea Resident Mission since January 2010. The expansion of PSDI’s program in PNG has necessitated the engagement of an additional coordinator since November 2016. The coordinators promote effective private sector development policies and practices through dialogue with the government and other stakeholders and support the implementation of PSDI initiatives.

PNG2007 2019 web

On this website, $ refers to US dollars unless otherwise stated.

For detailed information on PSDI activities in Papua new Guinea, download the April 2020 PSDI Country Overview here.

Papua New Guinea at a glance

Secured transactions framework

PNG's PSDI-supported Personal Property Securities Registry was activated in May 2016, making it easier for lenders to extend credit secured against movable assets, such as vehicles, inventories, or sales contracts.

27,000 securities registered

As of end-2019, more than 27,000 security interests over movable assets to be used as collateral for loans have been registered in the Papua New Guinea using the PSDI-supported secured transactions framework.

Agricultural Value Chain Loan

launched by MiBank, with PSDI support, in May 2019. Its initial application is for cocoa financing in East New Britain, and other applications are being assessed.

Consumer and Competition Framework

review completed, and ongoing support provided to the Independent Consumer and Competition Commission.

Private sector assessment

Building a Dynamic Pacific Economy: Strengthening the Private Sector in Papua New Guinea, published in April 2015

Public-Private Partnerships Act

gazetted in January 2018, enabled the creation of a PPP program and requires PPP transactions to be developed transparently and predictably.
Latest News
4 September 2020
Investment Promotion Authority and PSDI to make doing business in PNG easier

The Investment Promotion Authority, Department of Treasury, and PSDI illustrated their continued partnership by signing a Memorandum of Understanding on 2 September 2020 designed to make doing business easier in PNG.

read more
3 September 2020
IPA, ADB to ease business registry

The Investment Promotion Authority, Department of Treasury, and PSDI, with support from the PNG-Australia partnership, signed a memorandum of understanding designed to make doing business easier in Papua New Guinea.

read more
3 September 2020
IPA and PSDI sign MOU to extend partnership and continue working to make doing business easier in PNG (EMTV)

The Investment Promotion Authority, Department of Treasury, and PSDI, with support from the PNG-Australia partnership, signed a memorandum of understanding designed to make doing business easier in Papua New Guinea. (News item courtesy of EMTV).

read more
24 August 2020
PSDI-supported National Competition Policy endorsed by the National Executive Council in PNG

Papua New Guinea (PNG) now has a National Competition Policy which aims to improve economic efficiency, promote sustainable and inclusive economic growth, and increase consumer welfare through the promotion and maintenance of fair and effective competition in all markets in PNG’s economy.

read more
20 April 2020
Senior Women’s Business Leadership program: Papua New Guinea

In the Pacific, women are under-represented in senior professional and #leadership roles. PSDI works with partners to deliver training and mentoring to help prepare professional women for leadership positions.

read more
4 March 2020
New loan product developed for women farmers in Morobe Province, Papua New Guinea

In Morobe Province, Papua New Guinea, a group of women produce growers will soon be able to access the finance they need to increase their productivity and grow their businesses, thanks to an innovative new loan product developed by Women’s Micro Bank (WMB), NKW Fresh Produce, and PSDI.

read more
Key Publications
PSDI 2007-2019 Activities and Results Overview
PSDI 2007-2019 Activities and Results Overview
PSDI ended its third funding phase on 31 December 2019. This brochure, designed to mark the end of that phase, highlights key activities and results during PSDI's first three phases (2007-2019).
PSDI Country Overviews April 2020
PSDI Country Overviews April 2020
What is PSDI doing in the Pacific? These factsheets provide an overview of all PSDI activities in the Pacific up to April 2020.
PSDI Annual Progress Report 2018–2019
PSDI Annual Progress Report 2018–2019
This report gives an overview of PSDI activities from July 2018 to June 2019.
Finding Balance 2019: Benchmarking the Performance of State-owned Banks in the Pacific
Finding Balance 2019: Benchmarking the Performance of State-...
This report profiles the roles, performance, market context, and regulatory frameworks of 13 state-owned banks in 10 Pacific countries.
Finding Balance 2019: Benchmarking the Performance of Pacific State-owned Banks
Finding Balance 2019: Benchmarking the Performance of Pacifi...
This report profiles the roles, performance, market context, and regulatory frameworks of 13 state-owned banks in 10 Pacific countries.
PSDI Annual Progress Report 2017–2018
PSDI Annual Progress Report 2017–2018
This report gives an overview of PSDI activities from June 2017 to June 2018.