MSG Private Sector Consultation Commences

The Secretariat of the Melanesian Spearhead Group (MSG) based in Port Vila, Vanuatu has launched in-country consultations on the formulation of a Private Sector Development (PSD) Strategy, as mandated under the Port Moresby Declaration that MSG Trade Ministers signed and adopted on 26 November 2015.

The launch of the consultations followed the recent appointment by the Secretariat of Mr Jesoni Vitusagavulu, a Fijian consultant specializing in investment promotion and economic policy development in the small island developing states of the Pacific, to design the MSG PSD Strategy.

Funded by the European Union through the Pacific Integration Technical Assistance Project (PITAP), the Strategy formulation exercise commenced this week in Papua New Guinea and this will be followed by visits to Solomon Islands, Fiji and Vanuatu.

During the first consultations in Port Moresby the MSG team met with the EU Ambassador to Papua New Guinea, Mr Martin Dihm, who emphasized that: "The European Union Delegation to PNG seeks to encourage and support the private sector to contribute to responsible and sustainable development. The EU wants to help with the improvement of the policy environment so that it is easier to invest and create many more jobs, while respecting environmental and social standards. In this context, Papua New Guinea has concluded a trade agreement with the European Union that opens markets in Europe completely for all products "made in PNG". This agreement, which has already led to large-scale investments and created many jobs in Papua New Guinea, remains open for all Pacific ACP States wishing to join".

Mr Peter Forau, Director General of the MSG Secretariat, said: “An agreed distinct feature of the PSD Strategy is its inclusiveness and this will be pursued through the Strategy’s coverage of foreign and domestic investments, both large and small that operate in urban centres and the rural areas which are often left out of strategic policy development undertakings,” said.

“In short, the Strategy is to address key issues that affect not only registered business entities in the formal sector but also those doing business in the informal sector, many of which are women-owned and operated micro-enterprises,” he highlighted.

“We are grateful for the assistance of the European Union through PITAP, which enabled the Secretariat to engage the services of Mr Vitusagavulu who brings with him extensive practical and consulting experience in the related areas of investment promotion and facilitation, economic policy making, development banking and leadership in the corporate sector,” Mr Forau said.

The Director General anticipates the MSG PSD Strategy to add considerable value to each Member country’s aspiration for sustainable economic growth through improved trade and investment performance, especially in the context of the MSG Trade Agreement.

“Technical and administrative barriers to freer intra-MSG trade and investment flows are specifically being targeted in this intervention, while improvements to the representativeness and effectiveness of public-private policy dialogue would also be examined,” he noted.

“Vulnerability to natural disasters, as recently experienced with Category 5 Cyclone Pam in Vanuatu and the floods of last year in Solomon Islands will also be considered given their devastating impact on private enterprises,” Mr Forau indicated.

The visiting team is being led by Mr Henry Sanday, Private Sector Development Adviser, and includes the Mr Petros Shayanowako, the Secretariat’s Trade Economist/Legal who specializes on the Rules of Origin requirements of the MSG Trade Agreement.

Mr Sanday and Mr Shayanowako will be supporting Mr Vitusagavulu as they cover Port Moresby on 29 April to 03 May 2015, Rabaul on 03-04 May, Lae on 04-05 May and Mt Hagen on 06-07 May.

The team then moves to Solomon Islands beginning their consultations in Gizo on 11 May, in Munda and Noro on 12-13 May, in Auki on 14-15 May before returning to meet with stakeholders in Honiara until 19 May.

Consultations in Fiji will be held in Suva, Lautoka, Nadi, Ba, Labasa and Savusavu on 20-31 May, while the work in Vanuatu is to be undertaken in Port Vila, Santo, Tanna and Malekula on 01-05 June.

For further details on the in-country PSD missions which are currently underway, Mr Henry Sanday can be contacted via email, h.sanday@msg.int.