Investment Promotion Authority (IPA) is currently reviewing the Reserved Activities List (RAL)

Papua New Guinea’s Investment Promotion Authority (IPA) is currently reviewing the Reserved Activities List (RAL), a crucial government tool for promoting citizen participation in the economy. This review, a legal requirement at least every three years, aims to ensure the list remains relevant to the nation’s economic development goals and effectively supports local businesses. The IPA has released a consultation paper to gather public feedback on proposed changes, signalling a commitment to a transparent and inclusive review process.

You can read the full paper here.

What is the Reserved Activities List?

The RAL specifies certain business activities that are exclusively reserved for citizens of Papua New Guinea. This means that foreign investors, including those in joint ventures with locals, are generally not permitted to operate in these sectors. The goal is to nurture the growth of citizen-owned enterprises by protecting them from foreign competition in specific industries. It is an important mechanism to empower Papua New Guinean entrepreneurs and build a more robust and self-sustaining national economy.

Why a Review is Necessary

The economic landscape is constantly evolving, and a static RAL risks becoming outdated and ineffective. The current review is the first to be conducted under the amended Investment Promotion Act, which mandates a more structured and evidence-based approach. The review will assess whether the activities currently on the list are still appropriate for reservation and whether new activities should be added. This process is guided by several key principles, including:

• Keeping the list concise and targeted: The aim is not to close off the economy but to provide strategic support where it is most needed.
• Encouraging competition: Over time, the number of reserved activities is expected to decrease as local businesses become more competitive.
• Alignment with government policy: The RAL should be consistent with broader government objectives for economic growth and citizen empowerment.

Proposed Changes and Key Considerations

The consultation paper outlines a number of proposed changes to the RAL, covering a wide range of sectors, from agriculture and forestry to retail and services. Some of the key activities under review include:

• Alluvial gold mining: Reserving artisanal and small-scale mining for citizens.
• Certain types of fishing: Protecting the livelihoods of local fishing communities.
• Retail and wholesale activities: Reserving certain segments of the retail market, particularly in rural areas, for citizen-owned businesses.
• Transport and logistics: Reserving activities such as the operation of taxis and buses.
• Tourism and hospitality: Reserving activities such as the operation of guesthouses and tour guiding services.

The review is also considering the introduction of a new Restricted Activities List (RAL), which would allow for foreign participation in certain activities but with specific conditions, such as a requirement for a certain level of citizen ownership.

How to Participate

The IPA is encouraging all stakeholders, including business owners, industry associations, and the general public, to provide feedback on the consultation paper. This is a valuable opportunity for citizens to have their say in shaping the future of the Papua New Guinean economy. Written submissions can be sent to RALReview@ipa.gov.pg.

This review of the Reserved Activities List is a significant step towards creating a more inclusive and prosperous economy for all Papua New Guineans. By providing strategic support to citizen-owned businesses, the government aims to unlock the full potential of the nation’s entrepreneurial talent and build a brighter economic future.

REMEMBER! When applying for a job, it’s crucial to include a cover letter that clearly outlines your interest in the position and your suitability for the role, along with an updated curriculum vitae. Here are 5 valuable tips on crafting emails that grab attention and get read, as well as advice on structuring your CV to make a strong impression. By following these guidelines, you can enhance your application and increase your chances of landing the job you desire.