The creation of new businesses and the growth of existing ones is critical to Bougainville’s economic development.
President Ishmael Toroama has made business development and the promotion of innovation a focus of his government and the reasons for this are multi-faceted.
Profitable businesses help generate income, provide tax revenue to support the development of community services and provide employment for local people.
In 2017 there were only around 500 corporate taxpayers registered in Bougainville and around 1,000 individual taxpayers. The ABG needs to see these numbers significantly grow over coming years in order to support moves towards financial self-reliance.
Farming, agriculture and fishing are obvious areas for potential business growth, in everything from cocoa and copra production, through to the growing of fruit and vegetables and tuna fishing.
Tourism and hospitality and industries such as construction and transport are other sectors of potential.
The future development of projects in industries like mining would also create many spin-off opportunities for a range of businesses both directly and indirectly.
There is terrific scope to grow the number of services-related businesses in Bougainville, which can be run either by sole operators or with multiple employees. Everything from financial and professional services through to personal services.
The Autonomous Bougainville Government is also looking to specifically support start-up capacity among young people to create new small to medium sized businesses.
There is for example a focus on skills and knowledge exchange with existing businesspeople encouraged to mentor young people by sharing their experiences and teaching them lessons about running a business.
At a broader level support for such initiatives as the Bana special economic zone are aimed at encouraging regions to leverage their local strengths to create new economic activity. Policies and incentive are used to encourage business activity in designated economic zones.
Groups such as the Bougainville Business Association also provide support for members to grow their businesses. Promoting local goods and services and exploring new sales opportunities both within Bougainville and abroad are among activities.
The Central Bougainville Business Women In SME has created a network of women to support business development and promotion. Recent activities have included promoting and distributing organic products such as cooking ingredients and handmade items such as baskets. Training courses are also run, in things like flower arranging. The group was represented at the supply chain dialogue in Port Moresby in June.
In Arawa recently, 60 contractors completed government-backed training in basic bookkeeping and contract management with construction a focus. BCL also sponsored financial literacy training for 10 participants from various backgrounds from the Panguna district.
In May, the United Nations Development Programme – UNDP announced that the Japanese government would provide US$2.8 million to support the establishment of innovation centres in Bougainville to create opportunities for entrepreneurs by supporting business and skills development.
The innovation hubs are to be equipped with conference facilities, digital technology equipment and tutorial rooms for lessons. Building computer literacy and digital competencies of youth, men and women in Bougainville are among key objectives.
There are also local businesses leading by example such as Topkina Holdings Limited that has won the contract to build new classrooms at the ARAWA School of Nursing.