"Growing MSMEs is Growing PNG!"
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THE GTTC
The Ministry of Commerce and Industry on behalf of the Marape-Rosso Government.
“Approval and endorsement of Micro, Small and Medium Enterprises Policy 2022 and Micro, Small and Medium Enterprises Medium
Term Development Plan 2023-2027, as the official Government blueprints for the MSME sector”
On behalf of the Prime Minister of Papua New Guinea, Hon. James Marape and the
Marape - Rosso Government (Government), I, the Portfolio Minister, have the honour
of announcing today of a successful reform of the development framework for the Micro, Small and Medium Enterprises sector by the Ministry of Commerce and Industry
to support the Government’s development agenda on wealth creation and improved
living standards for Papua New Guineans under the “Take Back PNG” vision.
The Government has a constitutional duty to empower citizens to be active participants in and beneficiaries of national developments in all sectors of development. Since taking the helm of the political leadership and governance of the country, the Government has embarked on a number of strategic initiatives to translate its vision into broad development outcomes for PNG. These include reforms on some of the key development frameworks of the country to converge with the evolving business and economic landscapes
THE WEDC
PNG is endowed with significant natural resources. These resources provide the critical economy base for PNG to thrive developmentally. Yet, their translations into national wealth and prosperity has been inefficient. Unlike many resource rich countries that translate gains from the resource sector into development of other sectors to generate broad-based and inclusive growth and prosperity for everyone, PNG has not yet gone down that track. The extractive sector continues to remain as the epicentre of growth, whereas the growth in the other sectors is still lagging. Due to the lopsided growth, the economy of PNG is unable to absorb PNG’s growing population of more than 10 million into formal employment and entrepreneurship and other socio-economic safety nets.
MSMEs are key enterprise segments known for driving broad and inclusive growth. Empirical evidences show that
stable and prosperous economies have a large-sized private sector with a robust small to medium sized enterprises across key industries that drive these economies and provide the socio-economic safety nets for their citizens.
PNG’s formal sector accommodate less than 53,000 formal enterprises that are in active operations. The active
enterprises are mainly large enterprises. They cater for less than 7 percent of the total formal employment of less
than 1 million. The statistics clearly show that much of the private sector employment and government revenue are
created by less than 10 percent of the total registered enterprises that are presently in active operations. Hence, the
bulk of the citizens are either unemployed or pushed to the subsistence or informal economy.
