SEZA is the governing body responsible for SEZ

L-R: Special Economic Zone Authority Deputy Chair, Dr. Lawrence Sause, CEO Kikila Yavase, Director Vera Raga, on NBC Talkback with Josephine Oberleuter. (NBC National Radio: Timothy Vanua)

SEZ Authority [SEZA] plays a crucial role in Papua New Guinea's economic development strategy by creating a conducive business environment.

The authority offers incentives to encourage international companies to set up operations in the country. SEZA is the governing body responsible for SEZ established under the SEZA act of 2019.

One of the primary roles of SEZA is to promote exports by increasing the country's export earnings by facilitating the production of goods and services for international markets and encourage the transfer of advanced technology and skills to the local workforce.

SEZA has identified potential locations as Special Economic Zones [SEZs] within the country. These are Kokopo as a Tourism Zone, East Sepik for its Sepik Plains, Vanimo as free trade zone, Central Province as rice farming area, Baiyer in Western Highlands and Karamui in Simbu as potential areas for agriculture, Middle Ramu and Western Province.

These SEZs operate under different economic regulations and are designed to attract friendly business environment, foreign investment, create employment opportunities for locals.

Special Economic Authority Board Deputy Chair, Dr. Lawrence Sause said, “we’re trying our best to ensure that the SEZA concept works in PNG and the country gets a return of investment on the SEZA investment.

The intent is to drive economic growth and diversification through the establishment of special economic zones, attract foreign investment, boosting exports and improve infrastructure locally, facilitate trade, regional development and encourage innovation. But most importantly to align with the Government’s medium term development plan IV, primary focus is reduction of imports, increase exports and on job creation.”

The authority is also looking into down streaming of all raw materials in the country which will boost the export space in the international market. SEZ is based on best practice in the region.

“Special economic zone has been a conduit for attracting investment. Investment is attracted by designating areas that are given special privileges and incentives for people to come to invest and do business.

"The special economic zone in PNG is based on the notion of creating specialized zones that have particular incentives, reliefs and rules set aside from the rest and so it is on that basis the SEZ is created by legislation. It’s those attractions that potentially can attract foreign direct investment and in country investment,” said Dr. Sause.