Economy of Madang

Driving sustainable economic growth through diverse industries

Economic Overview

PGK 4.2B
Annual GDP

(2023 estimate)

3.8%
Growth Rate

Annual GDP growth

42%
Formal Employment

Of working-age population

Economic Sectors Contribution

Economic Sectors

Source: Provincial Economic Report 2023

Governor's Economic Vision

Governor Pariwa's economic strategy focuses on:

  • Sustainable resource development
  • Value-added processing
  • Small business empowerment
  • Tourism expansion
  • Infrastructure development
Madang Economic Development Corporation

Established in 2023 to drive investment and coordinate economic initiatives across the province.

Key Industries

Agriculture

The backbone of Madang's economy, employing over 60% of the workforce:

  • Cocoa: 40% of PNG's production
  • Coconut: Copra and virgin oil exports
  • Oil Palm: Growing plantation sector
  • Food Crops: Taro, yams, bananas
Recent Developments

New cocoa fermentation facilities and farmer training programs have increased quality and yields.

Fisheries

Madang's rich marine resources support:

  • Commercial Tuna: Major export product
  • Aquaculture: Prawn and seaweed farming
  • Artisanal Fishing: Local food security
  • Pearl Farming: Emerging industry
Recent Developments

New cold storage facilities and processing plants adding value to catches.

Tourism

Growing sector with potential in:

  • Dive tourism
  • Cultural experiences
  • Eco-tourism
  • Cruise ship visits

Annual Visitors: ~25,000

Mining

Important but carefully managed sector:

  • Ramu Nickel Mine
  • Alluvial gold mining
  • Industrial minerals
  • Strict environmental controls

Contribution: 15% of provincial GDP

Forestry

Sustainable forest management:

  • Selective logging
  • Reforestation programs
  • Eco-forestry initiatives
  • Community forestry

Goal: 100% sustainable certification by 2028

Investment Opportunities

Priority Investment Areas

Agro-Processing
  • Cocoa processing facilities
  • Coconut oil production
  • Fruit processing plants
  • Spice value-addition
Marine Industries
  • Tuna processing
  • Pearl farming expansion
  • Mariculture development
  • Boat building
Tourism Infrastructure
  • Eco-lodges
  • Dive resorts
  • Cultural tourism centers
  • Transport services
Renewable Energy
  • Hydroelectric projects
  • Solar power systems
  • Biomass energy
  • Micro-grid solutions

Current Major Investments

Project Sector Value (PGK) Jobs Created
Madang Cocoa Processing Plant Agriculture 120 million 350
Rai Coast Tuna Facility Fisheries 85 million 220
Karkar Island Eco-Resort Tourism 65 million 120
Madang Solar Farm Energy 150 million 90

Infrastructure Development

Madang-Ramu Highway

Completion: Q3 2025

150km road upgrade connecting agricultural areas to processing facilities and ports.

Investment: PGK 320 million

Madang Port Expansion

Phase 1 Completed 2023

Modernization project to increase capacity and support growing exports.

Investment: PGK 180 million

Rural Airstrip Network

Upgrades to 8 community airstrips improving access to remote areas.

Health Center Upgrades

15 rural health facilities being modernized across the province.

Vocational Schools

New trade training centers in 3 districts to develop skilled workforce.

Supporting Business Growth

Madang Province offers comprehensive support for businesses of all sizes