IFC and Pacific tuna fisheries

1. IFC and Pacific tuna fisheries Presentation to 7th SPC Heads of Fisheries Meeting Noumea, 2 March 2011 Peter Cusack

2. What IFC does • IFC invests, mobilises capital, and advises – promoting private sector-led solutions for inclusive and sustainable economies • Promotes open and competitive markets in developing countries • Supports companies and other private sector partners where there is a gap • Helps to generate productive jobs and deliver essential services to the underserved • Measures its impact both commercially and through development impact In the Pacific, IFC operates in Kiribati, Marshall Islands, Micronesia, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga and Vanuatu.

3. IFC‘s Strategic Priorities • Strengthening businesses in frontier markets, particularly smaller enterprises • Building long-term partnerships with emerging global players in developing countries • Supporting the long-term viability and success of businesses and economies through sustainable environmental, social, and corporate governance practices and analyses of the business environment • Addressing constraints to private sector growth in infrastructure, health, and education • Developing domestic financial markets through institution building and the use of innovative financial products

4. IFC Business in the Pacific Regional • Regulatory simplification and investment promotion projects in Vanuatu, Tonga, and Solomon Islands • Tourism impediments diagnostic in Solomon Islands, Tonga, PNG, Samoa, Timor-Leste, Palau, Vanuatu • Digicel – PNG, Vanuatu, Tonga, Samoa, Kiribati, and Fiji • Kula Fund – Pacific Private Equity fund Timor-Leste • “Better Business Initiative” facilitating public-private engagement along with business registration project PNG • Regulatory simplification and investment promotion and SEZ legislation • ECOM PNG – agribusiness, investment and technical assistance • PNG Microfinance – investment and technical assistance • Bank South Pacific - – investment and technical assistance • K K Kingston – manufacturing, investment

5. Outlook: supporting future sources of growth for Pacific islands countries Sources of Growth Potential IFC Support • Agribusiness, fisheries or plantation forestry investment • Debt, equity, risk sharing, trade finance • Linkage programs, to connect investments to local communities • Microfinance • Sustainability - certification support • Investment and business climate reform • Fisheries • Plantation Forestry • Plantation Agribusiness • Tourism

6. IFC recognises • The great economic, social and cultural importance of tuna fisheries to Pacific Island countries • The serious challenge of resource management, population growth and climate change • Catches of key species have probably peaked, more value cannot be obtained by simply increasing volumes • Determination among PICs to impose access conditions aimed at ensuring resource sustainability and more local benefit • Some firms involved in Pacific tuna fisheries struggle to adequately address social and environmental challenges. • Some firms face investment and business constraints

7. Potential for IFC engagement • Demand for sustainably and equitably produced tuna points toward new partnership, market and investment opportunities • Establishment and adoption of international environmental, social and trade standards may help increase and safeguard markets • Fisheries related infrastructure development may be leveraged for wider public good • Improving the climate for tuna fisheries investment and business • Structuring public-private investments • Strategic investment along the supply chain may generate local capacity and wealth, possibly through in-region processing and marketing

8. IFC Contact details GAVIN MURRAY Regional Manager, Pacific IFC – East Asia and Pacific Level 18, 14 Martin Place Sydney, NSW 2000 Australia Ph: +61 9223 7773 Mobile: +61 411 069 108 Fax: +61 9223 2533 Email: gmurray@ifc.org Peter Cusack Consultant Ph: +61 7 5437 7702 Mobile +61 414348823 Fax: +61 7 5437 7702 Email: pcusack@iinet.net.au