Papua New Guinea

The Market Development Facility (MDF) is one of Australia’s flagship private sector development programmes in the Indo-Pacific region. MDF began in 2011 in Fiji and expanded to Timor-Leste in 2012, Pakistan in 2013 and Sri Lanka and Papua New Guinea (PNG) in 2015. MDF stimulates business innovation, investment and regulatory reform in order to generate sustainable and broad-based, inclusive pro-poor economic growth and create more jobs and better incomes for poor women and men in rural and urban areas. In PNG, MDF will create approximately 156 jobs and increase incomes for 5,976 households, reaching up to 31,673 men, women and children, based on a two-year implementation (2015-2017) at the end of MDF Phase 1. Results will increase in MDF Phase 2.

MDF stimulates growth in a select number of strategic engagement areas that represent a major part of the (future) economy, have long-term growth prospects and are relevant for poverty reduction and broad-based inclusive growth for poor women and men. In PNG, MDF has opted not to work in more established sectors of the PNG economy such as the extractive industries or plantation cash crops, but to instead focus on four inter-related emerging industries and services that represent a pathway to more balanced and inclusive growth in PNG. These are: ICT and Logistics; Local Value Addition; Rural Input Services; and Tourism and Hospitality. These will help open up local markets, serve local producers and consumers better, create local employment and make PNG more competitive in regard to imports.

MDF’s focus in Papua New Guinea

Better connectivity between producers, consumers and markets with the help of ICT and logistics:
Increase investments in logistics and the diverse use of ICT applications to reduce the cost of doing business, retain product value and to make it more feasible for producers and markets to interact and coordinate. Investments in ICT applications can bring services within reach of potential consumers. Investments in (safe) transport services can improve the mobility and economic participation of women.

Increase local value addition to create markets for local raw materials and employment: Support businesses with the potential to compete with imports to increase the local sourcing of raw materials and the overall competitiveness of production, products and services.

Improve the range, reach and effectiveness of agricultural inputs and services to support productivity and commercialisation:
Support better distribution of useful (and affordable) agricultural inputs, services and information to help farmers improve production (quantity and quality) and ensure consistency in supply.

Improve the quality, diversity and accessibility of tourism and hospitality services to expand the market and create local employment.
Support the development of attractive tourism and hospitality services to domestic and international consumers. Consumption of local services and the ability to attract foreign visitors supports local business activity and creates employment opportunites.
PNG’s EconomyMDF’s Strategy in Papua New Guinea