Development assistance in Papua New Guinea
Economic recovery in Papua New Guinea
Australia’s economic engagement with PNG is being strengthened to assist PNG undertake significant economic reform and recover from the COVID-19 pandemic.
In December 2021, Australia provided PNG with a $650 million loan to help meet its 2021 Budget financing shortfall, assist with the ongoing health and economic impact of the COVID‑19 pandemic, and continue its progress on economic reforms under the International Monetary Fund Staff‑Monitored Program. This support was in addition to a previous loan agreement in November 2020, when we agreed to refinance an existing US$300 million loan (provided in late 2019), and to provide a further US$100 million loan to assist PNG to continue the delivery of core government services, such as healthcare and education. We will continue working with our international partners, including the International Monetary Fund and the Asian Development Bank, to help PNG meet the important reform conditions of its loans and build a stronger and more resilient economy.
We are expanding our work in technical and vocational education and training (TVET), including through the Australia Pacific Training Coalition, to increase and improve training for jobs in growth industries, particularly for women trainees, and build links between TVET and labour mobility opportunities in Australia.
We will enhance support to the informal sector, which provides most of PNG’s employment. We are testing new approaches to improve access to finance for small and medium enterprises. We are supporting women to be decision-makers and leaders at work.
We will continue to work to increase food production and strengthen linkages between smallholder farmers and markets to improve food security and boost exports.
Building business confidence will be key to attracting new investment, particularly in major pipeline resource projects, and restoring economic growth. We will continue programs to improve the business enabling environment.
We will continue to work through the Australian Infrastructure Financing Facility for the Pacific (AIFFP) to draw in financing for quality, climate resilient infrastructure that delivers long-term benefits for communities and the economy.
Australia is committed to continue pursuing a dynamic, multifaceted and comprehensive partnership with PNG, working together to resolve common challenges and build a more prosperous future.
Supporting investments
Private Sector and Rural Development
This investment provides support for a variety of programs which promote broad-based economic growth and rural development in PNG, (including: trade facilitation and developing competitive markets; Pacific Horticultural and Agricultural Market Access Program; Market Development Facility); as well as driving private sector development in PNG; Asia Development Bank’s Private Sector Development Initiative and the PNG Partnership with the International Finance Corporation.
Through private sector and government interventions, this investment is building a stronger environment for businesses and addressing constraints to PNG’s economic growth.
Related documents*
| Name of document | Year published | Type |
|---|---|---|
| Business Enabling Environment [PDF] | 2015 | Fact sheet |
| Agriculture: Rural Development, Markets and Trade [PDF] | 2015 | Fact sheet |
| Innovation and Partnerships [PDF] | 2015 | Fact sheet |
| Financial Inclusion [PDF] | 2015 | Fact sheet |
Market Development Facility
In PNG, the Market Development Facility (MDF) contributes to economic growth and rural development through a focus on market systems. MDF seeks to obtain better export markets for PNG in coffee, cocoa, vanilla and livestock. Its work in improving coffee supply chains with major exporters contributes to increased premiums for small-holder farmers households and nutritional intake for farming families. MDF’s interventions also increase the incomes of smallholders farmers.
Related links
Market Development Facility PNG
Pacific Regional Market Access (PHAMA Plus)
PHAMA Plus is a biosecurity and agriculture commodity trade and market access program co-funded by DFAT and MFAT, with the overall goal to contribute to improved economic growth and rural livelihoods for Pacific peoples. PHAMA Plus seeks to build market and trade access for key commodities using a blended direct delivery and market systems development approach. It also provides technical biosecurity advice to government partners on plant and animal biosecurity, works with government partners to meet Australian import and export biosecurity standards for wild-caught prawns and chicken, and seeks to improve commodity quality exports for coffee, cocoa and coconut.
Related links
Australian Pacific Training Coalition
The Australia Pacific Training Coalition (APTC) is our flagship initiative in the technical and vocational education and training subsector (TVET). The program lifts the quality of TVET, improves employment outcomes for graduates and encourages greater investment in training. Since APTC was established in 2007, it has provided over 3,000 Papua New Guineans with Certificate III, IV and Diploma level Australian qualifications in the automotive, manufacturing, construction, electrical, tourism, hospitality, health and community sectors.
Related links
Australian Pacific Training Coalition (APTC)
Skills for Sub-National Growth Investment
The Skills for Sub-National Growth Investment (SNGI) expands the Australia Pacific Training Coalition in Papua New Guinea to include new partnerships with the Mount Hagen Technical College, the Highlands Agricultural College, and Bougainville Technical College. The investment targets the skills needs of key sectors in Papua New Guinea, such as agriculture and construction, and the skills demanded internationally, including through the Pacific Australia Labour Mobility (PALM) scheme. SNGI aims to improve the employment outcomes of technical and vocational college graduates; increase the co-investment in skills training and; lift the quality of training provided by the three colleges. SNGI is a $45 million investment over six years (2020-2026) to deliver an annual output of 400 – 600 new graduates at Certificate I to IV levels; update course designs to meet current industry standards; and upgrade the qualifications of TVET trainers.
Related documents*
| Name of document | Year published | Type |
|---|---|---|
| Design Document for PNG Skills for Sub-National Growth Investment [PDF] | 2022 | Design |
| Design Document for PNG Skills for Sub-National Growth Investment [DOCX] | 2022 | Design |
Pacific Australia Labour Mobility (PALM) scheme
The Pacific Australia Labour Mobility (PALM) scheme is designed to help Australian businesses address chronic labour shortages and deliver a stable and productive workforce where local labour is not available. The scheme enables citizens from nine Pacific Island countries and Timor-Leste to take up unskilled, low-skilled and semi-skilled work opportunities in all sectors in rural and regional Australia, except for agriculture which applies to all of Australia, for up to four years.
