The Papua New Guinea Investment Promotion Authority (IPA) has entered into a memorandum of understanding (MoU) with the Autonomous Bougainville Government (ABG) to delegate investment promotion and business registration powers to the ABG. IPA managing director Clarence Hoot highlighted that this collaboration will aim to share expertise, enhance skills, and develop the capacity of the ABG’s Commerce Trade and Industry and Economic Development Department.
Hoot stated that the agreement is designed to create suitable policies and legislative frameworks for Bougainville as it assumes these responsibilities. A significant aspect of this MoU involves the support from the IPA to help establish a registration facility for businesses, as well as transitioning relevant registration powers. Additionally, the MoU encompasses works on intellectual property rights that will also be transferred to the ABG.
ABG Chief Secretary Kearnneth Nanei expressed optimism about how this MoU will enhance revenue generation for the government, noting the commitment to create a system that aligns with the ease of doing business agenda for Bougainville. The signing of the MoU was made possible through the Sharp Agreement of 2019, which facilitates a smoother transfer of functions and powers, thereby reducing administrative hindrances that previously limited the ABG’s ability to manage its revenue effectively.
The implications of this agreement are profound. It potentially paves the way for improved business operations in Bougainville, fostering a conducive environment for both local entrepreneurs and foreign investors. By streamlining business registration and enhancing governance systems, the partnership aims to boost economic prospects for the region, suggesting a positive outlook for Bougainville’s economic development.
In summary, this MoU represents a strategic step towards decentralizing investment authority, allowing the ABG to tailor its investment landscape to meet local needs while encouraging growth and sustainability within the region. This initiative not only aims to empower local governance but also signals a forward-looking approach to economic development in Papua New Guinea.
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