Under the Investment Promotion Authority Act, there are various business activities that are reserved for national enterprises.
Governor for Oro Province, Garry Juffa, recently hit the headlines because of his move to drive out foreigners who are operating illegal businesses.
Most of the business affected by Juffa’s move are those operating tucker shops or kai bars as they are more commonly known here.
Under the Investment Promotion Authority Act, there are various business activities that are reserved for locals and national enterprises.
That legislation covers a wide range of areas but for the purpose of this article below is a list of 5 businesses that reserved for national enterprises.
- Retail sale through stalls, tucker shops and markets
- Wholesale and retail sale of second hand clothing and footwear
- Retail sale carried out from a motor vehicle or motor cycle
- Wholesale and retail sale of handicrafts and artefacts
- Repair of footwear when not done in combination with manufacture or wholesale or retail of these goods
So why are these businesses continuing to operate these businesses when they know that their operations are illegal?
It’s hard to answer this question but the biggest problem is the lack of enforcement of these laws. If there is a much more efficient enforcement procedure, the chances of illegal business popping up would be reduced dramatically.
There’s also the possibility that some of these businesses operated by foreigners are actually registered in the name of locals.
Despite this illegality and even if these illegal businesses cease operations, Papua New Guineans must step up and operate similar businesses. There’s no point complaining and then doing nothing about it.
The lesson we can learn from these foreigners is to look at opportunities and if it fits the bill, take action!