Papua New Guinea is expecting another strong year for its agriculture exporters, with global coffee prices hitting a 50-year high just two months ago.
Kina Bank CEO and Managing Director Ivan Vidovich shared this positive outlook at the 2025 Back to Business Breakfast in Port Moresby on Tuesday, February 4, 2025.
“While agriculture is expected to perform well, international hotspots like the Middle East and Ukraine will continue to disrupt global supply chains. These challenges highlight the fragility of global supply networks, and PNG is affected by this,” Mr. Vidovich said.
He added that PNG can be protected from external risks with sensible policies and close collaboration between the Government and the private sector.
“We enter 2025 with uncertainty in the global economy and in the geopolitical landscape,” Mr Vidovich said.
“The global economy continues to navigate uncertainties, with a second Trump Presidential term, China’s slowing growth, and geopolitical hotspots potentially sparking commodity price volatility.
He added that the PNG Kina-US Dollar interbank rate will continue to adjust downwards through the Bank of PNG’s instituted ‘crawling peg’ regime.
“In 2024, the BPNG provided intervention into the market on a regular basis which helped authorised foreign exchange dealers to clear import orders in a timely manner. We observed that through the second half of 2024, delays for import orders reduced on average from months to weeks.”
He added that as a result of the continued re-adjustment of the PNG Kina, PNG’s agriculture exporters can expect another strong year.
“Global Coffee prices hit a 50-year high just two months ago. 2024 was a strong year for cocoa growers in PNG. Price increases are projected to be double digits in the coming year. Gold prices are also set for another solid year trading above US$2,000 an ounce, as geopolitical tensions and uncertainty continue to keep gold prices elevated,” he added.
Mr. Vidovich emphasised that Kina Bank is committed to working with key stakeholders to boost activity in the agriculture sector and bring these benefits to PNG.
Kina Bank CEO and Managing Director Ivan Vidovich (right) with Prime Minister James Marape during the panel discussion at the Prime Minister’s Back to Business Breakfast.