MoU SIGNED TO DRIVE DOWNSTREAM PROCESSING

By Sandra ULG

THE PNG Forest Authority (PNGFA) and the Department of International Trade and Investment have signed a landmark Memorandum of Understanding (MoU) to advance downstream processing in the forestry sector on Thursday 19th June 2025 in Port Moresby.

The MOU that paves the way for the establishment of Integrated Forestry Economic Zones in the country. This marks a major milestone in the government’s 50-year vision to shift from raw log exports to full-scale downstream timber processing.

The initiative will begin with the establishment of four forest industrial parks in Central, Western, East Sepik, and Morobe Provinces.

The pilot facility is set for Napa Napa in Central Province, where logs from the region and neighboring areas such as Western Province will be processed into finished wood products.

Speaking at the ceremony, PNGFA Managing Director John Mosoro said the agreement supports the government’s policy to phase out round log exports and focus on value-adding through downstream processing.

PNGFA will work in partnership with the Department through its business arm, PNG Diwai Holdings Limited to begin developing processing zones and seek international markets for PNG’s processed timber products.

The Secretary for International Trade and Investment Ms. Jacinta Warakai Manua said this was the first MOU signed with a sectoral agency and a step forward in realizing the Marape-Rosso Government’s Special Economic Zone strategy.

She says the ministry is committed to supporting local industries to process raw materials onshore and boost revenue from value-added exports.

Both parties highlighted that the real challenge lies ahead in effectively implementing the MOU and building the necessary infrastructure.