Pipso Annual Report 2012 by Webmedia Fiji

Our Vision A region of opportunities to grow and prosper.

Strategic Goals Our Mission

Capacity Building •

To be a pivotal partner in harnessing resources to bring about real growth and prosperity in the region.

To promote and facilitate greater cooperation among members

• To improve the capacity of members to engage in dialogue with Governments • To improve capacity of members to engage with development partners • Continuing strengthening the Secretariat to provide effective services to its member Partnership • To establish a complementary relationship with PIFS in which PIPSO implements policies and programmes that impact on PSD • To provide advice and guidance to PIFS on the development of private sector policies • To assist members to formulate national private sector strategies and policies • To advocate the interests of the private sector at regional and international fora Technical Support • To provide or facilitate technical advice and guidance on business developments in the Pacific • To identify the priority needs of members and provide appropriate assistance • Strengthen the capacity of members to develop strategic policies

Table of Contents Board Members Secretariat Staff Chair’s Review CEO’s Review Part 1

1 5 6 8

Capacity Building

Trade Pasifika – Fiji

II.

Cariform Business Forum – London

III.

EU- Pacific Business Forum – Vanuatu

•

Market Access

•

Building Business Value Chain Supply

Marketing and Quality Assurance Toolkit

Part 2

Part 3

•

Pacific Youth Council

•

Investment Fiji

•

UNDP - MDG

•

WTO

Technical Support

2. Non-Financial Benefits

3. Training • Regional

Leadership and Governance

II.

Public/Private Partnership Roundtable

•

National

Productivity Workshop – Fiji

II.

FCEF Partnership with Seoul Chamber of Commerce

III.

Financial Management Training – Kiribati & Solomon Islands

IV.

Youth Entrepreneurship Programme – Tonga and Palau

Clean and Green Industries Showcase – Cook Islands

VI.

Private Sector Strategic Development – Niue

4. Private - Public Sector Dialogue • Engaging with the Pacific – Fiji

Dialogue with Pacific Islands Forum Leaders – Cook Islands

Partnerships 21

1. Regional Partnerships • Pacific Islands Forum Secretariat – Policy Advice Initiatives

UNDP

•

1. Direct Financial Benefits • Business Development Fund

3. Empowerment of Pacific Women In Business – Fiji

5. Country visits and NPSO mentoring – Kiribati, Tuvalu & Nauru

2. Private Sector Cooperation • Round Table Discussions in North Pacific – FSM, RMI, Palau, Northern Marianas & Guam

•

Business Mentors NZ

2. Building partnerships with regional organisations • MSG

1. Trade Capacity Building • Market Connections

•

22 22

Pacific Islands Forum Economic Ministers

and Officials Meeting (FEMM)

II.

Pacfic Islands Forum Trade Ministers and Officials Meeting

(FTMM)

III.

Pacific ACP Trade Ministers and Officials Meeting (PACP)

IV.

Pacer Plus

EDF 10 & EDF 11 Consultations

•

PSC-SPEITT Steering Committee

•

IACT – Secretariat of the Pacific Community

•

Foir Du Pacifique Trade Event – New Caledonia

•

Australian Volunteers International

Part 4

Secretariat

Operations I. Finance

36 36

38 39

II.

Membership

III.

Review and amendment of BDF/CBF

IV.

Staffing

Annual General Meeting

VI.

Strategic Planning

Part 5

Tables and Statistics

Part 6

Audited Financial Statements

Acronyms 2012 ACP ADB AGM ANZ AusAID Biz Clim BMNZ BDF CBF CEO COMESA ComSec ECOWAS EO EU FCEF FEMM FICs FSM FTMM ILO ITC KCCI MSME MYOB NPSO NZAID PACER Plus PACREIP PCF PICs PICTA PIFS PIPSO PITIC PITIA PLP PNG PPD PPP PSD PTDF RMI SICCI SME SPC TCCI TVET TNPSO UNDP USP WIB WTO iv

African Caribbean and Pacific Group of Countries Asian Development Bank Annual General Meeting Australia and New Zealand Banking Group Limited Australian Government’s Overseas Aid Programme ACP Business Climate Facility Business Mentors New Zealand Business Development Fund Capacity Building Fund Chief Executive Officer Common Market for Eastern and Southern Africa Commonwealth Secretariat Economic Community of West African States Executive Officer European Union Fiji Commerce and Employers Federation Forum Economic Ministers Meeting Forum Island Countries Federated States of Micronesia Forum Trade Ministers Meeting International Labour Organisation International Trade Centre Kiribati Chamber of Commerce and Industry Micro Small Medium Enterprise Mind Your Own Business National Private Sector Organisation New Zealand Government’s Overseas Aid Programme Pacific Agreement on Closer Economic Relations Pacific Regional Economic Integration Programme Pacific Cooperation Foundation Pacific Island Countries Pacific Island Countries Trade Agreement Pacific Islands Forum Secretariat Pacific Islands Private Sector Organisation Pacific Islands Trade & Investment Commission Pacific Islands Tuna Industry Association AusAID Pacific Leadership Program Papua New Guinea Public Private Dialogue Public Private Partnership Private Sector Development Pacific Trade and Development Facility Republic of the Marshall Islands Solomon Islands Chamber of Commerce and Industry Small Medium Enterprise Secretariat of the Pacific Community Tonga Chamber of Commerce & Industry Technical and Vocational Education and Training Tuvalu National Private Sector Organisation United Nations Development Program University of the South Pacific Women in Business World Trade Organisation

Board Members Hafiz Khan (Fiji Islands) (Chair June 2010 - June 2012) Hafiz Khan was the Chair of PIPSO from June 2010 to June 2012. He continues to remain on the Board as an Ex-officio member. He is the Chairman of Hexagon Group of Companies which owns and operates a number of Hotels/Serviced Apartments (offering in total 400 units) and other Commercial Businesses: including the Hexagon International Hotel Villas & Spa, Grand West’s Villas at Wailoaloa Nadi, Suva Motor Inn and Seashell Cove at Momi. He was a former President Fiji Hotel Association and was a former board member of Fiji Employers Federation (FEF) for seven years, two of which he was elected as President. He is also a former Senator in the Parliament of Fiji for 2005 and 2006 as the Prime Minister’s nominee.

Sala Epa Tuioti (Samoa) (Vice Chair June 2010 – June 2012) Epa Tuioti was the Vice Chair of PIPSO from June 2010 to June 2012. He currently remains on the Board as an Ex-officio member. He is the Co-Managing Director and Co-Owner of KVAConsult Ltd. A former President of the Samoa Chamber of Commerce, he is the current Chairperson of the Samoa National Bank. He served in the Office of the Executive Director for the Asian Development Bank in Manila, Philippines and has over 18 years senior experience at both the head and deputy levels of the Treasury Department for the Government of Samoa, including eight years as the Financial Secretary.

Mr. Paula Taumoepeau (Tonga) (Chair July 2012 - Present) Paula Taumoepeau is the current vice-president of the Tonga Chamber of Commerce and Industry. Paula is the Country Manager in Tonga for Nautilus Minerals. Nautilus Minerals is following the lead by the offshore oil and gas industry to tap vast offshore resources. Prior to working at Nautilus Minerals, Paula was General Manager of Leiola Group Ltd and was at the National Reserve Bank of Tonga where he worked for over 13 years. Paula is currently on the board of directors of the Tonga Water Board and the Tonga Development Bank, and represents the Chamber on several public/ private working committees including the National Economic Development Council.

Mark Mathews (Fiji) (Vice Chair June 2012 - December 2012) Mark Mathews served as the President of the Fiji Commerce and Employers Federation till the fourth quarter of 2012. At the time of his appointment to the PIPSO Board, he was the General Manager of Rentokil Initial Ltd, which provides Pest Management and Hygiene services throughout Fiji and the South Pacific. Mark has resided in Fiji for the past fourteen years and has held appointments in government, military, corporate and the private sector, both in profit and not for profit organisations and has worked in Australia, Indonesia, Malaysia, and Fiji. He resigned at the end of the year for personal reasons.

Board Members

Kenneth Uyehura (Palau)

Katarina Tofinga (Kiribati)

Kenneth Uyehura is the President of the Palau Chamber of Commerce and also the President / partowner of Micronesian Appraisal Associates, Inc. Guam. He is a general certified real estate appraiser and consultant. He was also a past vice-president of American Reality Inc. Kenneth has served as the General Manager/CEO for Palau Public Utilities Corporation which involved management of five power plants and power distribution facilities serving over 21,000 residents. Between 1979 - 1989, Kenneth also served in various financial institutions in Hawaii and Guam where he was branch manager and responsible for overall operations and growth of the respective branches.

Katarina Tofinga is a Board Member and Secretary of the Kiribati Chamber of Commerce and Industry. She is currently the Managing Director of Mauri Konsult Ltd. Prior to that she was the Chief Executive Officer of the Kiribati Copra Mill Ltd for nine years. She also served for 15 years in the civil service and held various positions including the Deputy Secretary at the Ministry of Health.

Avi Rubin (Niue)

Bruce Saunders (Solomon Islands) Alternate Board Member

Avi Rubin is currently the President of the Niue Chamber of Commerce, Vice-President of the Niue Fisherman Association, Chair of the Niue Shipping Sub-Committee and a Member of the Government of Niue Tender Board. Avi has been self-employed since the age of 16 when he moved with his family from Israel to the United States. After running a gardening business for two years, he moved on to the jewellery industry and through innovative marketing grew the business from 6 to 60 staff. Avi then started a telecommunications retail business in California which, by the time he sold it four years later, had grown to 7 stores and a 40,000 customer base. Avi moved to Niue in 1999 and owns and operates the only commercial fishing operation, a restaurant and a general retail store.

John Leahy (Papua New Guinea) John Leahy is the President of the PNG Chamber of Commerce & Industry and a lawyer by profession. John has 20 years experience in senior taxation roles in PNG and Australia and has held senior management positions both in the private and public sectors. John has extensive networks in PNG and a thorough understanding of the PNG business environment and significant experience in provision of tax advice for restructures, corporate finance and transactions. He is a Permanent Resident of PNG.

Bruce Saunders is currently the Vice Chair of Solomon Islands Chamber of Commerce and has been a member since 1972. He is also the director of Central Banks of the Solomon Islands. Bruce Saunders has over 45 years of experience working with the Pacific Community and has a vast working knowledge of Pacific Island Countries.

Mereia Volavola (Fiji) Ex-officio (Jan 2010 - Present) Mereia Volavola is the Chief Executive Officer of PIPSO. She has vast knowledge and experience in the area of Finance and Banking. Ms Volavola joined PIPSO in 2010 and prior to that she held the position of CEO of the Capital Markets Development Authority in Fiji. She has also worked for the Reserve Bank of Fiji, HFC Finance Ltd and Housing Authority. Mereia Volavola holds an MBA in Banking and Finance with a Distinction from the University of Wales, UK and a Bachelor of Arts Degree from the University of the South Pacific in Economics and Business Management.

Klaus Stunzer (Samoa) Klaus Stunzner is the Managing Director of Samoa Spare Parts & Accessories and is an Executive Member of the Samoa Chamber of Commerce & Industry. He served on a number of statutory Boards and Committees in Samoa, which includes the Central Bank of Samoa, Samoa Institute of Accountants, Samoa Post and Samoa Trust Estates Corporation, amongst others. He also served as the President Samoa Chamber of Commerce & Industry from 2006-2007 and served in the PIPSO Council during those years. He is a chartered accountant by profession.

Retired Board Members

Secretariat Staff

Martin Tofinga (Kiribati) 2010 – June 2012 Martin Tofinga is a private local consultant with his small consultancy business focusing on project development and management and same time serves as the President & Chief Executive Officer of the Kiribati Chamber of Commerce & Industry (KCCI), a business organisation and the National Kiribati Employers Federation. Martin has held several ministerial posts with the Kiribati government serving as a Cabinet Minister of Commerce/Trade Industry and Cooperatives and Minister of Environment Lands and Agricultural Development with the Kiribati Government amongst others since 2002. Martin received his Masters Degree in Development Management from the Asian Institute of Management (AIM – Graduate School of Management) in 1999 under the Asian Development Bank Scholarship. Prior to that, Martin had obtained qualifications in Project Management including Certificate, Post grad Certificate in 1995 and later a Post grad Diploma in 1996 from the University of Bradford, West Yorkshire in the United Kingdom.

Mereia Volavola Chief Executive Officer

Teresa Manarangi Trott (Cook Islands) 2010 – June 2012 Teresa Trott is the immediate Past President of the Cook Islands Chamber of Commerce which she held for three years and currently holds Vice Presidency. Teresa is a Cook Islands consultant who, since 1996, has undertaken a variety of national, international and regional consultancies. Her consultancy skills are more particularly in project development and working with public and private sector clients to assess financial and management capacity and strengthening organisations through training. Teresa is a New Zealand trained secondary teacher who worked for eight years at the Auckland Technical Institute in New Zealand prior to returning to the Cook Islands. Teresa currently holds a number of positions on Government Committees, Cook Islands Tourism Board Director and the Chairman of the Creative Centre Trust. Teresa has worked in a number of Pacific Island countries including, Cook Islands, New Zealand, Fiji, New Caledonia, Samoa, Solomon Islands and Tonga.

Winifred Gauna

Elisabeta Boletawa

Maake Komailevuka

Programme Officer

Project Officer

Programme Officer

Nov 2009 - Jun 2012

Ernie Gangloff (Papua New Guinea) 2010 – June 2012 Ernie Gangloff is a partner of the Deloitte Touche Tohmatsu in PNG. He is the current president of the Papua New Guinea Business Council. Since 2002, Ernie has been working for Deloitte and became a Director in 2008 and thereafter appointed as a partner in 2011. Previously, he worked for a number of companies in PNG including KPMG. He has worked in a number of countries in the region and specialises in risk management, internal audit, financial management services, compliance and funds management.

Erica Lee

Casey Morecroft

Bhavin Vagh

Communications and Research Officer

Financial Advisor

Finance and Admin Officer

Feb - April 2012

Chair’s Review Hafiz Khan 2012 was a significant year for PIPSO. The work momentum continued from 2011 with more funding and partnerships secured during the year to continue delivering the services required for member countries. These services included assistance to individual businesses, private and public sector dialogue, mentoring for businesses and NPSOs, capacity building and business facilitation and support. Direct funding increased by more than 55.0% or $0.6m to $1.5m from $0.9m in 2011. In addition another $1.1m was secured through partnerships with development partners and donors for other programmes and project. This brought the total funding to $2.6m, the highest ever reached in PIPSO’s last five years of operations and reflects the growing recognition and confidence of PIPSO’s work by development partners.

“2012 was a significant year for PIPSO. The work momentum continued from 2011 with more funding and partnerships secured during the year to continue delivering the services required for member countries”

Of the total funding received, more than 80.0% was utilised for the benefit of the businesses while 17.4% was personnel expenses incurred by the Secretariat. This is in line with PIPSO’s operational target that personnel expenses are kept at 25% of total income. At the same time this reflects the Secretariat’s efficiency in delivering the programmes and assistance to businesses with minimum costs. A number of key events occurred during the year, some of which were launched by PIPSO for the first time. The first EU- Pacific Business Forum was held at Vanuatu in early June along the margins of the ACP-EU Joint Council of Ministers Meeting. This event brought together EU and Pacific Business to discuss issues that would strengthen business and trade connections. PIPSO together with BizClim, Vanuatu Ministry of Trade, Commerce, Industry and Tourism and Vanuatu Chamber of Commerce and Industry (VCCI) organised this business forum. In June also, the first Trade Pasifika Event for the region was held. This event brought together businesses and buyers at one venue. PIPSO worked with a number of donors and regional organisations to support this private sector initiative that included UNDP, MSG, PIFS, and SPC. The private sector businesses were also fully supportive of the events. ANZ Bank Fiji was the main sponsor including other businesses that ensured the success of the event. It is expected that the second one will be held in 2014. BizClim provided good support to PIPSO during the year. Following the Trade Pasifika event, seven companies from the Pacific attended the Cariforum Business Forum held in London in August, which was fully sponsored by BizClim. Thereafter BizClim Consultants undertook a value chain supply of the key industries in eight countries in the Pacific region. UNDP continued with its support for the Youth Enterprise Programme in Palau and Tonga. Trainers from the NPSOs of the eight countries completed their training for the Marketing and Quality Assurance Tool Kits with the support from Pacific Cooperation Foundation. The Business development fund continued to be utilised by various businesses in the region and we acknowledge the continued support of the Japanese Government. This fund has been very helpful to those businesses that have assisted and impacted in growing their business. In increasing the North and South Cooperation, a series of private sector dialogue was conducted in the North Pacific. The aim was to increase private sector cooperation, prioritise key challenges and find

solutions that can be addressed both at the national and subregional level. This dialogue resulted in the signing of the MOU of Cooperation for all the Chambers of Commerce in the North Pacific, which included Guam and North Marianas. As the Chair of the Board, I’m pleased that this has taken place and has opened up opportunities to further trade and development cooperation in the North Pacific. A number of partnerships were established last year as PIPSO built its development partners network in key programme areas. This has enabled PIPSO to undertake work in areas where there are huge gaps in terms of private sector support. I’m pleased as the Chair of PIPSO to see developments partners partnering with PIPSO in these areas.

Manarangi Trott of the Cook Islands and Martin Tofinga of Kiribati who served on the Board for six years. They have been instrumental to the growth of PIPSO during those early years and contributed significantly to its activities and programmes. I also acknowledge the contribution of other past Board members, which include Francis Remengesau (Palau), Bill Stinnet (FSM), Ernie Gangloff (PNG) and Mark Mathews (Fiji). I acknowledge the decision of the Council to keep the current Chair and Vice Chair on the incoming Board as Ex-officio members to assist and mentor the new Board. I hope that PIPSO members take the time to read this annual report and note the work that has been done by PIPSO on their behalf.

An important partner for PIPSO has been the Pacific Island Forum Secretariat. During the year, PIPSO with the support of PIFS has been able to secure observer status at the Forum Trade Ministers and Officials Meeting. The same was also obtained for the Pacific ACP Trade Ministers and Officials meetings.

With all the work that has been achieved by PIPSO in that last three years and especially for 2012, I’m grateful for the Board’s support and cooperation. I would like to thank the Secretariat for all the work that was carried in 2012 and especially to the Vice-Chair Sala Epa Tuioti for the excellent support and contribution.

During the year PIPSO conducted its Annual General Meeting and new board members were appointed to the Board following the completion of the current members. I would like to sincerely thank the retiring Board members, Mrs Teresa

I would also like to wish all the incoming Board members and the new Chair, Paula Taumoepeau the very best and I hope that they will be able to carry on the work momentum and take PIPSO to another level.

CEO’s Review Mereia Volavola Running a private sector organisation is always a challenge especially in the Pacific where resources, in particular financial resources are a constraint. Development assistances if any, whether through some form of agreement or partnerships, direct private sector support is very limited in the Pacific as most funding are for the public sector. In the same vein support for a regional private sector organisation like PIPSO would be the lowest priority for any development partner or donor, as the general assumption is always that the private sector can fund themselves. At national level, funding for NPSO is also a low priority for national governments. Against this background, PIPSO as an organisation has to work hard in order to secure funding to build the capacity of NPSOs, directly assist businesses and provide policy advice assistance to the national private sector organisations. In the last three years, especially in 2012, PIPSO has managed to secure more funding to assist businesses, provide targeted training and organise the private sector at the national level so that they can have effective dialogue on issues affecting the private sector with the government.

“PIPSO would not have been able to reach new heights without the unwavering support of the Pacific Leadership Program”

2012 is a record year for PIPSO. Firstly, total funding received directly increased to $1.5m compared to $0.9m in 2011. This represented an increase of 55.2%. This does not fully represent the other funding and partnerships that PIPSO entered into during the year, which amounted to another $1.1m. As a result this brought the total funding to $2.6m in 2012. This is the highest ever recorded and is testament to the work undertaken by PIPSO. Secondly a number of partnerships with development partners were secured. During the year PIPSO partnered with the United Development Programme Pacific Centre (UNDP) on the Youth Entrepreneurship Scheme. Under this scheme PIPSO submitted a proposal to UNDP for assistance for the Palau SBDC and the Tonga Chamber of Commerce. The scheme involved developing business ideas supported by training, mentoring and securing financial support.

•

For the Melanesian countries, PIPSO’s assistance grew by 34.5% to $0.226m in 2012 from $0.168m in 2011. Similarly for the Polynesian countries, the direct financial assistance increased by 39.2% to $0.326m from $0.234m in 2011.

•

$311,146 for the Pacific Regional Women in Business conference for 14 countries – 108 participants

•

$127,299 for Business Development Fund & $20,542 for Trade Pasifika

Fourthly, in 2012 PIPSO was able to secure significant funding from BizClim to undertake a value chain supply study in nine PIPSO member countries. This follows the successful completion of the development of the Marketing and Quality Assurance toolkits that will be used by the NPSOs to train potential and exporting companies in the 14 PIPSO member countries.

In June, in partnership with BizClim, the first ever EU- Business Forum was held in Port Vila, Vanuatu. The purpose of this forum was to facilitate dialogue on private sector development issues that would support EU-ACP Business endeavours. As PIPSO builds its relationship with BizClim, seven companies from the Pacific and a PIPSO staff were invited to participate at the CARIFORUM Business Forum in London, UK, which was fully funded by BizClim. This was an opportunity for Pacific Businesses to meet African and Caribbean Businesses as well as to identify opportunities in the programmes undertaken in these countries.

Fifthly, with regards to the assistance provided by PIPSO to members, these were directed to needed areas and include the following:

The partnership with the Pacific Cooperation Foundation, which started in 2011, continued in 2012, which saw the completion of the marketing and quality assurance toolkit. This toolkit will be used by the NPSOs to conduct training for companies with export potential. A joint collaboration between PIPSO, UNDP, PIFS, SPC and MSG put together the first Trade Pasifika event, which brought together 67 companies from around the Pacific showcasing their products at Nadi, Fiji in June. In addition a side workshop on relevant trade issues was also conducted. ANZ Fiji was the main sponsor including various other companies like Williams & Gosling, Air Pacific, Fiji TV and Air Terminal Services (ATS). This first event has provided important insights, which will facilitate the next event in 2014.

Thirdly, PIPSO was able to focus its assistance on priority areas. This includes the small island states, the northern Pacific and capacity building of the national private sector organisations. In 2012, the total funding assistance provided to the small islands states in the Micronesian region, which included Nauru, Kiribati, FSM, RMI and Kiribati increased by 72.0% to $0.476m from $0.276m in 2011. The assistance also includes the Tuvalu private sector organisation. In 2012 PIPSO increased its work in the north Pacific which culminated in a private sector round table discussion for all the Micronesian Chambers’ and whereby a MOU was reached which included Guam and Northern Marianas Chamber of Commerce.

•

$42,265 was used for mentoring NPSOs which included Nauru, Kiribati and Tuvalu

•

$27,142 for capacity building – 5 NPSOs (Fiji, Niue, Solomon Is, Tonga, Cook Is)

•

$5,876 to conduct Financial Management Training for businesses

•

Kiribati – 30 participants

•

Solomon Is – 28 participants

$494,589 for Technical Workshops

•

Leadership Governance – 14 NPSOs – 30 participants

•

PPP Roundtable – 8 NPSOs (Fiji, PNG, Tonga, Vanuatu, Samoa, Kiribati, Solomon Is, Palau) – 30 Participants

•

Northern PPP – 3 NPSOs (Palau, FSM, RMI) – 12 participants

•

PIPSO AGM – 13 NPSOs – 29 participants

•

Strategic Planning – 11 NPSOs (Fiji, PNG, Tonga, Vanuatu, Samoa, Kiribati, Palau, Niue, Cook Is, Nauru, FSM) – 28 participants

Following the revision of the Business Development Funding (BDF) application process, a significant improvement was seen in the utilisation of the funds. The change in process, which included the call for proposals, a lot more quality applications were received and it is expected that before the completion of the one year period, all the funds would be fully utilised. Of the assistance that was provided via BDF, below is the breakdown of categories of assistance:

•

$40,192 used by 7 companies for participation at exhibitions and workshops

•

$20,921 used by 3 companies for exploration visits

•

$18,713 used by 3 companies for building staff capacity and training

•

$47,473 used by 11 companies for promotional materials

The third quarter of 2012, was a very busy period for PIPSO. Given the increasing demand of members’ needs and the growing partnerships, it was only appropriate that the PIPSO Secretariat review its performances, functions and strategic directions for the next three years. This is to ensure that the work undertaken by the Secretariat were meeting the members needs, addressing the gaps and challenges, and applying solutions and actions that were relevant and adequate in the local context. PIPSO held its first strategic planning workshop in September which was attended by the 12 regular country members, associates, affiliates and key developments partners like PIFS, PLP and SPC. In addition, PIPSO’s counterpart organisation in the Caribbean, CAIC was also represented. The three days planning exercise was very fruitful and resulted in a revision of PIPSO’s mission and strategic goals and development of the key action plans. The participation of PIPSO’s members provides ownership to members of the strategic plan and the work of the Secretariat.

We were also fortunate to have Ms Casey Morecroft from ANZ Sydney join us for three months as a Financial Adviser. We are appreciative to ANZ and Australian Volunteers International for facilitating her attachment with PIPSO. She assisted PIPSO with a survey on access to finance and the barriers experienced by businesses in accessing credit. Personnel’s expenses to total funding were recorded at 17.4%, was well below the limit of 25% stipulated by the Board.

In November, PIPSO hosted the first Regional Women in Business Conference, which brought together over 100 participants from women entrepreneurs, community leaders to Government representatives from the 14 PICs.

I would like to sincerely thank our Development Partners namely the Pacific Islands Forum Secretariat, Secretariat of the Pacific Community, UNDP Pacific Centre, Pacific Cooperation Foundation, BizClim, the Japanese Government, European Union and all the 14 National Private Sector Organisations, Associates and Affiliates.

At the business forum, the participants also raised funds to be provided to the Pacific Disability Forum to assist the women that are involved in businesses. In addition, the Managing Director of Senikai Spas Ltd, Mrs. Debra Sadranu donated 10 scholarships for women living with disabilities in Fiji to receive Beauty Therapy training at her training institute.

PIPSO would not have been able to reach new heights without the unwavering support of the Pacific Leadership Program. Their support has been extremely crucial as they have provided the much-needed core funding support for the Secretariat. I would like to acknowledge the visionary leadership of Regional Director Mr. Cameron Bowles and his team at PLP.

The year ended with the North Pacific Chamber of Commerce holding a round table discussion on issues affecting the private sector in North Pacific, how they could collaborate to enhance business opportunities and the capacity building needs of the various NPSOs. The roundtable discussions were successful and a Memorandum of Understanding was signed with all the Chambers that included Northern Marianas and Guam. It is expected that more work will still be undertaken to increase the trade and collaboration between the North and South Pacific.

Also I would like to thank our Board Directors for their support during the year. Mr Hafiz Khan whose term expired in June has been very instrumental and supportive in establishing crucial partnerships with key development partners. The Secretariat acknowledges Hafiz’s and Epa’s excellent leadership during their term as Chair and Vice Chair, which saw the exponential growth of PIPSO.

Since PIPSO began its operations in 2007, all the 14 member countries for the first time have fully paid up their subscription fees to PIPSO which includes all outstanding fees from past years. This was not an easy task to achieve given the different levels of development and financial positions of the 14 NPSOs. To receive full subscription fees reflects the members’ confidence in PIPSO based on the benefits that they are receiving.

A lot of work outcomes and achievements were made in 2012. This was made possible with the recruitment of two additional staff bringing the total staff of the Secretariat to five. Currently the Secretariat has two Programme Officers, a Communications and Research Officer and a Finance and Administration Officer. This level of staffing was sufficient to attend to the work required with the level of funding of over $2.6m. Any new partnership or funding would require additional staffing.

•

To promote and facilitate greater cooperation among members

• To improve the capacity of members to engage in dialogue with Governments • To improve capacity of members to engage with development partners • Continue strengthening the Secretariat to provide effective services to its member

Mr Paula Taumoepeau was appointed as the new Chair, together with Mr Mark Matthews as Vice Chair who resigned at the end of year. The Secretariat acknowledges their support and leadership. In concluding, a very big thank you to the staff of PIPSO and NPSOs for their support and cooperation.

Part 1 Capacity Building

2012 Activities 1 Trade Capacity Building Trade Pasifika 2012 – 25th - 27th June 2012, Nadi Fiji This was the first trade exhibition event ever held for island businesses in a regional setting. The event provided an excellent opportunity for the region’s businesses to participate and promote their products and services to potential customers within and outside the region. Trade Pasifika 2012 also featured regional and trade specialists’ and business industry leaders who addressed participants at scheduled Panel Discussions. Trade Pasifika featured over 46 booths representing the Manufacturing Industry, the Primary Industries (Agriculture, Forestry, and Fisheries), the Service Industries and Women in Business. The 67 companies and organisations exhibiting their products were from Fiji (37), Papua New Guinea (15), Solomon Islands (3), Tonga (3), Samoa (3), Vanuatu (2), Republic of Marshall Islands (1), Australia (1), Niue (1), Kiribati (1). Over the three days, Trade Pasifika saw over 500 visitors pass through the display booths. According to the data captured, over 700 business contacts were exchanged with exhibitors also eager to work on closing some key deals upon their return to their respective countries. One of the enterprises made sales and deals worth around F$30,000 during the TP12 and received orders hotels on Denarau. This was a great success for the company given that this was their first trade show.

Another processing company also secured MHs Fiji (55 outlets) to purchase the Samoan Chips (banana and others) from TH plantation Samoa. Negotiations are currently on hold pending the assesment of its ability to supply the amount required. Another area that gained much applause was the workshop/ plenary sessions. Participants found these to be very informative. The topics over the three-days were pertinent to doing business in the Pacific Region and the manner of delivery suited the desires of the participants. These plenary sessions also provided the opportunity to discuss and clarify a number of key issues relating to trade within the Pacific Region and access to markets. This event would not have been successful without the support of major sponsors ANZ and our other sponsors Williams and Goslings, Pacific Leadership Program, United Nations Development Programme, Air Terminal Services (ATS), Air Pacific, Melanesian Spearhead Group (MSG), Fiji TV and the Secretariat of the Pacific Community. PIPSO looks to host another Trade Pasifika event in 2014 and will be collaborating with relevant business partners in this regard. NB: Refer to graphs and tables on page 47-48

Marketing and Quality Assurance Toolkit Trainings – 29th–1st November Auckland, New Zealand PIPSO in collaboration with the Pacific Cooperation Foundation (PCF) conducted Training of Trainers Programme on developing training toolkits for Quality Assurance and Marketing. The training was held in Auckland, New Zealand from the 29 October – 1 November 2012 and was funded by NZAID. Nineteen participants - two representatives each from eight Forum Island Countries, two representatives of the Secretariat of the Pacific Community IACT Programme and PIPSO’s Programme Officer, attended the training. The toolkits focus on boosting trade for Pacific businesses through effective marketing and greater understanding of quality assurance systems for export. The project covers eight of the fourteen National Private Sector Organisations from our Pacific Island Countries: - PNG, Solomon Islands, Vanuatu, Fiji, Tonga, Samoa, Cook Islands and Niue. The programme was developed to assist selected trainers from eight NPSOs to be able to understand and adapt the modules appropriately to the businesses they represent. With sufficient knowledge/understanding of marketing and quality assurance concepts, trainers have been taught techniques to be able to deliver training using these modules. Businesses that receive the training will have the tools and confidence to take the first steps towards export and will be in a better position to make informed decisions about how to get their products into the export market. This programme is ultimately about getting the right tools to businesses to allow them to get the most out of the market they want to enter.

This project is a three-year collaboration effort between the Pacific Cooperation Foundation and PIPSO. The project addressed the Marketing and Quality Assurance issues faced by SMEs involved in exporting. The training toolkits will be used by NPSOs to build the capacities of entrepreneurs who are looking to enter the export markets. The programme is funded through the NZAID and supported by the Ministry of Foreign Affairs and Trade in NZ. The key objectives of the project were: • To deliver a ‘train the trainer programme’ where NPSOs are trained and capable of delivering training on marketing and quality assurance principles on an on-going basis

•

That the programme result in trained businesses developing skills that impact how their product or business is promoted and an understanding of the most relevant quality assurance system to their business and the benefits and costs associated with implementation

•

That PCF builds greater awareness of ‘True Pacific’ and refers businesses to the training programme

•

That PIPSO utilises the toolkit in other complementary areas of work and provides on-going referrals, or support, to the NPSOs providing the training

Pictures from Trade Pasifika 2012 at the Sheraton Resorts in Nadi, Fiji.

Participants of the Marketing and Quality Assurance training during the industry visits.

The enterprises from the Pacific that participated were from the Agricultural and Cultural Industries namely: 1. Amruqa, Papua New Guinea. 2. Elefa Handicraft, Marshall Islands. 3. Kaiming Agricultural Investment Ltd, Fiji. 4. Loriannas’ Buttons, Samoa. 5. Tanna Coffee, Vanuatu. 6. Fiji Fashion Week, Fiji. 7. Niue Vanilla International, Niue. SPC joined PIPSO at this event and made a presentation on agro-processing and cultural industries.

Participants of the Building Business Value Chains Validation Workshop in Nadi, Fiji

and Tourism recommended a Pacific-EU Business Forum to foster business and investment between Europe and the Pacific. The forum took place on the fringes of the ACP-EU Joint Council of Ministers, meeting, which was held in Vanuatu on 11th – 15th June 2012. More than one hundred participants from the Pacific private sector and business leaders from Europe and the Pacific participated in the two-day forum. The main purpose of the conference was to facilitate Public-Private Dialogue on private sector development issues that will support EU-ACP business endeavours. There was strong support for ongoing dialogue. Participants agreed to a sustainable platform for conducting a structured business dialogue on relevant business environment issues, business and investment opportunities.

The business forum was an opportunity for pacific businesses to witness the progress that other small island countries had in penetrating international markets with the level and quality of the goods and services that they produced. Participating business had the opportunity to network with Caribbean as well as African businesses. EU-Pacific Business Forum – 11th–12th June, Port Vila Vanuatu Following a successful two-day regional meeting in Vanuatu held by BizClim in January, 2012 themed “Enhancing Pacific business climate for future prosperity”, the Government of Vanuatu through the Ministry of Trade, Commerce, Industry

PIPSO Board Chairman attending the Pacific/EU Business Forum in Vanuatu

Building Business Value Chains – June - November 2012 PIPSO completed a study on building business value chains in the Pacific with the support of ACP Business Climate. The purpose of this project was to empower key stakeholders (in terms of knowledge, capacities and analysis) in undertaking business environment reforms and creating more favourable business and investment conditions in the Pacific region. In reviewing the enterprises within the chosen value chains, using the Value Chain model as a framework for analysis, it was established that many (especially SMEs) had significant development needs if they were to reach best practice and be able to offer their goods and services to an increasingly sophisticated international and regional markets. Whilst the VCs assessed were diverse (Tourism, Agro Processing, Fisheries, and Cultural and Creative Industries) they all faced common problems in the process of upgrading and developing their markets. After the completion of the study, a two-day Regional Validation Workshop on Building Business Value Supply Chain in the Pacific Region was held at the International Tanoa Hotel, in Nadi, Fiji, from the 11th to the 12th of October 2012. Thirty key stakeholders were selected from value chains from sectors involved. The draft report with its findings was presented to participants to seek their views on some solutions and changes.

“

The EU experts suggested the formation of clusters for industries mentioned above which was well received by the participants. Since the workshop, the participants have held various discussions and the clusters are slowly taking form through the drive and persistence of the champions who were identified to lead the clusters. The report identified the following problems: • Skills development (technical and management)

•

Marketing and access to markets through increased knowledge

•

Quality improvement through inspection systems, testing, HACCAP, packaging, bio-security

•

Process improvement through simple methods and systems improvement often being able to use low cost intermediate technology

•

Increased use of design and product development in line with market requirements

•

Increased use of Business Development Services (BDS) in the rural areas to educate and train subsistence farmers to be more commercial. (This will require cultural sensitivity)

•

Improve access to finance for SMEs

Building the private sector is key to ensuring that growth in the Pacific is inclusive. By removing barriers and building the right conditions, Pacific policy makers can help develop a strong and dynamic private sector. Xianbin Yao, Director General of the ADB’s Pacific Department

“

Cariforum Business Forum – 8th-9th August 2012, London, UK PIPSO and seven other Pacific enterprises were invited by BizClim to participate at the 2nd Cariforum-EU Business Forum organised by the Caribbean Export Development Agency (Caribbean Export) and the ACP Business Climate facility (BizClim) on the 8-9 August 2012 in London.

Empowerment of Pacific 3 Women in Business

Private Sector Cooperation 2 Federated States of Micronesia, Palau and the Marshall Islands – 11th December, Guam PIPSO hosted roundtable discussions with the Chambers of Commerce from the North Pacific from the 10-11 December 2012 at the Ramada Hotel in Guam. This meeting built on discussions held in 2011 at the Public-Private Sector Dialogue session held in Chuuk, FSM. The objectives of this meeting were the: • Institutionalisation of the Private Public Dialogue process

•

Strengthening of National Private Sector Organisations

•

Addressing Specific Recommendations from the PPD in 2011

the foundation for the signing of a Memorandum of Understanding between the Chambers in the Northern Pacific. The meeting highlighted a number of key areas pertaining to the development of the private sector in that part of the Pacific and it also discussed the support required to build the capacities of the Chambers of Commerce in this region. It was also an opportunity for PIPSO to hold one-on-one discussions with its member NPSOs on their mentoring needs and country-specific mentoring reports have been developed for each of these. The mentoring support to the North Pacific NPSOs will be provided with the guidance of the Guam Chamber of Commerce and supported by our PIPSO Executive Member representing the North Pacific, Mr. Ken Uyehara.

The meeting was attended by representatives from the Chambers of Commerce of Palau, Yap, Guam, Saipan, Tinian, Chuuk, Pohnpei, Kosrae and the Marshall Islands and also laid

Pacific Women In Business Forum: 14th-16th November, Nadi, Fiji PIPSO conducted its first Pacific Islands Women in Business Conference on 14th-16th November at the Tanoa International Hotel in Nadi. With the theme ‘Making the Connection – Challenges & Solutions, Opportunities & Options, Buyers and Sellers, Entrepreneurs & Leaders of the Pacific’, the conference brought together a total of 110 participants consisting of women entrepreneurs, Government and community representatives from PIPSO’s 14 member countries. Ms Penny Williams, Australia’s Global Ambassador for Women and Girls, opened the Conference. In her speech, the Ambassador informed the participants about the Pacific Women Shaping Pacific Development Initiative that was launched by Australian Prime Minister Julia Gillard at the Pacific Islands Forum Leaders Meeting in August. The initiative commits up to $320 million over 10 years to help shift entrenched barriers to women’s social, economic and political participation across Pacific Island Forum countries. In its initial stages the program aims: • To provide mentoring and training to female members of parliament and candidates to help them influence national and local level politics and successfully run in elections

•

Participants at the Round Table Meeting in Guam

“

Governments need to recognise and deal with national private sector organisations at the national level as they represent the majority of the private sector. They have the capacity to mobilise their members to engage in dialogue with government on its policies and legislations.

“

Mereia Volavola

To improve Pacific marketplaces to offer safer and better facilities such as lighting, water supply, sanitation and waste disposal; greater women’s participation in market place management

•

To expand services for survivors of violence, including increasing the number of health services, crisis centres and shelters

•

And to challenge current social attitudes and behaviours towards women

She said consultations would be held with the governments, private sector and civil society organisations in order to develop country workplans. It is anticipated that development partners, including UN Women, UNDP and women’s organisations will be key partners to the new Pacific women’s initiative.

Ms Penny Williams speaking at the Pacific Women in Business Conference.

Ms Williams emphasised that for Pacific women to achieve economic empowerment, the following measures were required:

•

Women needed access to capital so women entrepreneurs could turn their ideas into the small and medium enterprises that are the source of so much growth and job creation

•

Legal and regulatory systems needed to be examined and reformed to enable women to avail themselves of the full range of financial services

•

Women’s access to markets needed to be improved so those who started businesses could keep them open

•

Women need to be informed about trade and technical assistance programs that were available.

The Ambassador concluded that economic orders and policy strategies may only extend so far and that women must be persistent and actively investing and involved. Other organisations that participated at the conference included PIFS, MSG, USP, Small Business Development Centre (Samoa), UN Women, Pacific Leadership Program (AusAID), Fiji Women’s Right Movement and the Secretariat of the Pacific Community. The programme over the two and a half days included sharing of success stories by various women entrepreneurs from around the region, panel discussions and group discussions. Women entrepreneurs were able to share stories on how they had overcome obstacles and barriers, they identified solutions and were informed of opportunities that existed. Apart from this, they were able to form networks amongst themselves.

Engaging With The Pacific (EWTP): 23rd – 24th August 2012, Nadi, Fiji PIPSO was invited to present at the 3rd ‘Engaging with the Pacific Leaders Meeting’ that was held in Nadi, Fiji in August. The meeting was undertaken with the theme ‘Strengthening Partnerships Amongst PSIDS’ towards the vision ‘A United and Distinctive PSIDS Voice’. PIPSO made a presentation on “Growing the Pacific Economies” in which PIPSO urged the leaders that in growing Pacific economies, governments must fully engage with the private sector, provide the right macroeconomic environment and have the political will to implement changes and reform.

Participants of the Women in Business Conference in Nadi.

The Government representatives shared their Governments’ plans and policies with regards to the development of women entrepreneurs, the various government schemes in place to assist businesses and their policy on gender economic empowerment. PIPSO is grateful to the sponsors of the conference: PLP, Westpac Banking Corporation, Mai Life, Pure Fiji, Tanoa International and SPC. Positive impacts have been noted since the conference, which includes increased awareness, networking amongst the women entrepreneurs and new business opportunities and partnerships.

“

Let’s not underestimate the difficulties of ushering in an age where women are equal participants in their economies. Legal changes require political will. Cultural and behavioural changes require social will. We must ensure women are given access to capital so women entrepreneurs can turn their ideas into the small and medium enterprises that are the source of so much growth and job creation. Penny Williams – Australia’s Global Ambassador for Women and Girls

“

The conference reiterated the critical role that Pacific women entrepreneurs play in the economy of their countries with regards to income and employment creation and the need to create policies that would encourage and promote such developments.

Private - Public Sector Dialogue

PIPSO extended an invitation for membership to the three French-allied countries that were present at the EWTP: Timor Leste, French Polynesia and New Caledonia. The leaders from these three countries were very enthusiastic about PIPSO’s invitation and have requested for PIPSO to visit their countries. The Pacific leaders and representatives at the Meeting agreed to collaboratively support the work of PIPSO in strengthening the capacity of the private sector as the engine of growth in PSIDS economies. Private Sector Dialogue with Forum Leaders: 27th August 2012, Rarotonga, Cook Is. The 2012 Private Sector ‘Dialogue’ and Forum Leaders Meeting was held in the Cook Islands from the week beginning 27th August, 2012.

With the theme “Clean and Green Industries: Promoting Sustainable Businesses in the Pacific”, the Dialogue focused on innovative approaches to a sustainable clean and green environment, sustainable finance for Pacific entrepreneurs, and sustainable workforce and touched on issues relating to resource and development. Presentations during the two and a half days included the European Investment Bank (EIB), Cook Islands Tourism Corporation (CITC), Forum Fisheries Agency (FFA), Asian Development Bank (ADB), International Finance Corporation (IFC) and PIPSO. PIPSO delivered a presentation on the results of the business survey ‘Increasing Access to Finance in the Private sector across the Pacific’. ANZ and PIPSO hosted a breakfast event with the leaders, with the objective to provide an opportunity for networking between the private sector representatives and the leaders. Throughout the week, the Cook Islands Chamber of Commerce hosted a ‘Clean and Green Industry Showcase’, which included large and small industries from around the world that are doing their part to develop business while also caring for the environment. The private sector statement from the Dialogue was presented to the Forum Leaders by Mrs Teresa Manarangi Trott who was the President of the Cook Islands Chamber of Commerce and Industry.

Fiji’s Minister for Women Dr Jiko Luveni with participants of the Women in Business conference Private Sector Dialogue in Rarotonga chaired by Teresa Trott.

Country Visits and NPSO Mentoring and Capacity Building

In order for PIPSO to be relevant and to create awareness on the role it plays, regular visits are made to its member countries. This allows PIPSO to gauge member’s needs and plan its programmes and activities appropriately to assist private sector development and businesses. PIPSO conducted a series of incountry private sector visits to member NPSOs. Private Sector visits in 2012 included:

•

Kiribati (1st - 5th March)

•

Solomon Islands (17th – 20th April)

•

Nauru (10th – 12th December)

NPSO Mentoring Visits As part of its services to members, to build capacity and strengthen the NPSOs, PIPSO conducts private sector visits to ascertain how the NPSO is fulfilling its role at the national level, meet with individual businesses, and meet with key Government Ministers and stakeholders. These trips help PIPSO identify the challenges faced by the NPSOs and businesses, understand national Government plans and strategies in order to determine how PIPSO can provide effective assistance. Tuvalu PIPSO worked closely with the Tuvalu National Private Sector Organisation (TNPSO) and secured a funding grant of AUD $24,000.00. The funding was provided to assist the TNPSO to fund priority programme including:

•

Capacity building

•

Mentoring programme

•

Public/Private dialogue and consultations.

Kiribati Further to the private sector visit that was undertaken in February 2011, a follow up visit was conducted in early March to ascertain the status of progress of the work undertaken by Kiribati Cahmber of Commerce and Industry (KCCI). KCCI is part of the NPSO mentoring and where some initial funding has been provided by PLP through PIPSO to assist KCCI. The follow-up visit was timely since the Executive Council had just been elected in the February AGM. The visit provided the opportunity to explain the role of PIPSO and its expectation of the NPSO. In line with the recommended corrective actions, the KCCI successfully completed the development of their strategic plan and was progressing work on conducting surveys of businesses on Tarawa to be able to build a better understanding of the capacities and needs of their members. Nauru The Nauru NPSO required further assistance in regards to their structure and set up. Discussions were held with the Government representatives on how they could assist the NPSO. More work is required to be done. The purpose of the visit was to: • Reconcile the two parties of the NBPSO and map a way forward

•

Meet with the Executives of the NBPSOs and discuss the needs of the NBPSO to enhance its Secretariat Services

•

Meet with the Private Sector members

•

Meet with Key Government Ministries to outline private sector issues

“

The best mentors are people who have been in business, not necessarily a success story but those whose failures can be learnt from.

“

Hafiz Khan

• To establish a complementary relationship with PIFS in which PIPSO implements policies and programmes that impact on Private Sector Development • To provide advice and guidance to PIFS on the development of private sector policies • To assist members to formulate national private sector strategies and policies • To advocate the interests of the private sector at regional and international fora.

Part 2 Partnerships

Regional Partnerships

Pacific Islands Forum Secretariat Under PIPSO’s partnership strategic goal, it is expected that PIPSO establish a complementary relationship with PIFS in the policies and programmes that impact on private sector development. At the same time, PIPSO is expected to provide advice and guidance to PIFS on the development of private sector policies. To fulfill the above goal, PIPSO has been involved in a number of consultation meetings and has provided views on private sector issues at various forums, committees and advisory groups. The recognition of PIPSO’s role allows it to be included at these various forums both at the regional and international level. The contribution made by PIPSO’s representatives allows assistance and funding to be directed to areas that are needed and important for private sector development in the Pacific. Second Non-State Actors (NSA) Dialogue on ‘Engaging with Non-State Actors on PACER Plus: Improving Consultations’ - 26th March 2012, Brisbane, Australia The Second NSA Dialogue was held in Brisbane at the Novotel Hotel on the 26th of March, 2012. PACER Plus Officials attended the meeting from the Forum Member countries and representatives of a range of national and regional NSAs from both the private sector and from civil society organisations. The dialogue provided an opportunity for Officials involved in the PACER Plus to brief NSAs on the content and progress of the PACER Plus negotiations. It also provided an opportunity for NSAs to discuss critical issues of interest to their members, ask questions and provide views on the goals and objectives of a free trade agreement between the Pacific islands countries, Australia and New Zealand. The Dialogue for 2012 focused particularly on ways to deepen consultations between NSAs and the national governments during the process of negotiating PACER Plus. Leading up to the meeting, PIPSO conducted a survey of the 14 NPSOs on the consultation process of PACER Plus. The result of this survey were presented at this Dialogue, which highlighted the lack of consultation and the limited knowledge of businesses on trade issues. This highlighted the need to educate and increase the knowledge and understanding of the private sector on trade issues and how to make use of existing trade agreements.

PIPSO Granted Observer Status at the Forum Trade Officials and Forum Trade Ministers Meetings Following PIPSO’s application to PIFS, PIPSO was granted observer status at the Forum Trade Ministers meeting held on 11th May 2012, at Majuro, Republic of the Marshall Islands. The Decision of the Forum Trade Ministers on the admittance of PIPSO as an observer to the Forum Trade Officials and Ministers meetings subject to a number of conditions. PIPSO Granted Observer Status at the Pacific ACP (PACP) Trade Officials and Ministers Meetings Following the PACP Trade Ministers’ meeting in Nuku’alofa, Tonga on 16th-17th August 2012, the PACP Trade Ministers agreed to grant PIPSO an observer status. PIPSO’s participation as the regional private sector representative was encouraged. At the meeting the PACP Trade Officials and Ministers noted the importance of an inclusive approach to regional policy making and economic development and have acknowledged the private sector’s role in creating economic prosperity and driving opportunities for growth. EDF 11th Consultations – 11th-12th October 2012, Suva, Fiji PIPSO was invited by the EU Office in Fiji to a workshop held on 11th – 12th October to outline to all regional organisations the process regarding the 11th European Development Fund (EDF). The first consultation on the regional programming for the Pacific region was conducted on 12th October 2012. The drafting of the 11th EDF Pacific Regional Indicative Programme is expected to be completed by mid-2013 for EU approvals by the end of 2013. Further consultations with key stakeholders will be facilitated.

Pacific ACP countries, the French Pacific Overseas Countries and Territories (OCTs), regional and international organisations, civil society representatives, European Union (EU) and its Member States as well as development partners exchanged their perspectives on the assistance needed to support development initiatives in the Pacific region. Policy Steering Committee Meeting – 6th November 2012, Suva Fiji The PSC-SPEITT is an annual meeting to provide overall high level policy direction and advice on programme and project implementation. The PSC is set up to oversee and validate the overall direction and policy of the SPEITT programme. PIPSO is a member of this policy committee that provides advice on project implementation and how projects can be effectively implemented with tangible impact. SPEITT is an EDF Funded Programme and there are 4 projects supported under the SPEITT Programme: 1. Increasing Agriculture Commodity Trade (IACT) 2. Pacific Integration Technical Assistance Project (PITAP) 3. Trade Facilitation in Customs Cooperation (TFCC) 4. Pacific Regional Tourism Capacity Building Project (PRTCBP) 5. PIPSO receives funding under the PITAP component that is administered by PIFS.

Review of the Private Sector Dialogue Process The Forum Economic Ministers meeting in July 2012 tasked the Pacific Islands Forum Secretariat (PIFS) to “….seek the views of the Private Sector, members and development partners on ways to improve the format and operation of the private sector dialogue with a view to implementation in 2013”.

This was also discussed in the Private Sector Dialogue in August 2012 and further on during PIPSO’s Strategic Planning Workshop in the context of PSD discussions. A number of recommendations were discussed by the members were submitted to PIFS. Secretariat of the Pacific Community - IACTMembership in IACT Technical Advisory Group Two representatives of PIPSO sit on the IACT Technical Advisory Group, which deliberates on the application from private sector enterprises for the IACT Funding. The Chair of the Advisory Group is PIPSO Board member, Sala Epa Tuioti. Public / Private Partnership Roundtable: 30th May–1st June 2012, Radisson, Denarau, Fiji The Public Private Partnership Roundtable meeting was held at the Radisson Resort from May 30th – 1st June, 2012. Representatives from local municipal councils and the private sector from eight Pacific Island Countries were present at the meeting: Fiji, Samoa, Tonga, Kiribati, Vanuatu, PNG, Palau and Solomon Islands. In addition, two representatives from Tuvalu and Cook Islands were also present as observers. Over the three-day workshop, presentations were made by various speakers on projects that could be undertaken by the private sector in partnership with their local councils. Various examples of PPPs were also highlighted in the workshop, which included experiences from Bangladesh, Nepal and the Caribbean. A PPP Clinic was also conducted on the 2nd day of the workshop to identify how the various Pacific Island countries implement the ideas derived from the workshop in their own countries. Foire Du Pacifique, 4th–7th October 2012, Noumea, New Caledonia PIPSO facilitated the participation of private sector representatives at the above trade event. A number of companies and organisations participated at this event.

Building Partnerships with 2 Regional Organisations MSG Industry and Heads of Investment Promotion Agencies Meeting: 5th – 7th September 2012, Port Vila, Vanuatu The Melanesian Spearhead Group (MSG) hosted its first meeting of the Industry Officials and Heads of Investment Promotion Agencies in Port Vila, Vanuatu from 5th - 7th September 2012. The focus of the meeting was to identify areas where the MSG could engage and complement national programmes on Investment and Private Sector Development for its member countries. PIPSO presented on the role of the private sector. The outcomes from discussions formed the basis of an MSG Strategy for Investment and Private Sector Development. The Strategy will guide the future work of the MSG Secretariat and strengthen co-operation amongst and between MSG investment and private sector institutions.

Australia Volunteers International - Provision of Volunteer Worker – Ms Casey Morecroft (ANZ Sydney) AVI provided a volunteer worker, Ms Casey Morecroft from ANZ Sydney to work at PIPSO. Ms Casey worked as the Financial Adviser for three months. Her work involved the provision of financial training for businesses. Basic and immediate financial training were conducted in Kiribati and the Solomon Island that was facilitated through the assistance of ANZ branches in those countries. The financial training programme included the participation of ANZ staff that explained to participants about the various products on offer, the requirements for credit and why banks request particular information. In addition, Ms Morecroft also conducted a financial survey on access to finance and the barriers experienced by businesses in accessing credit. After the completion of her term, PIP has identified the need for another volunteer from AVI. This application was approved and with a longer term of two years. Mr Leslie Massey has been appointed as the Financial Management Trainer for Small & Medium Enterprises with PIPSO in Suva and is due to begin in June 2013.

NZ Business Mentors PIPSO continued to work with NZ Business mentors by connecting NPSOs who would require mentoring for their members. Mentoring began in the Melanesia region in 2012 with PNG and Fiji. Feedback from these countries has highlighted the success of the programme with continued demand expressed by businesses. Additional training has been provided to businesses following the mentoring which have been funded by PIPSO. UNDP Pacific Centre Steering Committee Planning Meeting - 7th December 2012, Suva, Fiji The UNDP Pacific Centre (UNDP Pac) Steering Committee conducted a meeting on its 2013 work plan on 7th December 2012 and invited PIPSO’s participation, as a developing partner. The purpose of the meeting was to present to the partners the outcome of UNDP Pac’s work in 2012; to guide their thinking on the focus of their regional programme delivery for 2013; and help in beginning the process of identifying how UNDP could best work with Governments, Regional Organisations, non-government organisations and other partners under the next regional programme cycle 2014-2017.

Pacific Youth Council – Youth Employment Forum – 11th September 2012 PIPSO was invited by the SPC to present on the private sector’s role in driving youth employment and how young leaders could effectively engage with the private sector in their countries. Youth leaders attended the Forum from the FSM - Chuuk and Kosrae, Tuvalu, Tonga, Niue, Nauru, Cook Is, Vanuatu, Solomon Is, Fiji, Kiribati and Samoa.

Investment Fiji Export Seminar – 22nd September 2012 Investment Fiji invited PIPSO to present to key export stakeholders on Sustainable development in the region. Vice Chair Mark Mathews made the presentation on behalf of the Secretariat. His presentation focused on the role of PIPSO in supporting the private sector. He also stressed the importance of membership in NPSO like the Fiji Commerce and Employers Federation. Millennium Development Goals Workshop (UNDP) - 10th–12th October 2012 A Pacific Consultation workshop was jointly organised by the United Nations Development Programme (UNDP), Asian Development Bank (ADB), Economic and Social Commission for Asia and the Pacific (UNESCAP) in cooperation with the Pacific Islands Forum Secretariat (PIFS) and the Asia Pacific Community of Practice on Managing for Development Results (APCOP). PIPSO was invited to participate as the voice of the private sector. The three-day workshop was held in Nadi and was attended by Government officials, civil society representatives, PIPSO and development partners representing 14 Pacific Island Countries.

Representatives of Investment Promotion Agencies in the Pacific.

PIPSO’s CEO at the US International Visitor Leadership Programme

The Workshop was the second in a series of regional and subregional workshops and consultations on the post-2015 development agenda and the post-Rio+20 processes led by the ESCAP/ADB/UNDP regional partnership. 4th Aid for Trade Round Table Meeting - 1st December 2012 PIPSO was represented at the 4th Aid for Trade RTM in Samoa on 1st December 2012 that was organised by the Pacific Islands Forum Secretariat and the World Trade Organisation. Ms. Margaret Malua (CEO of Small Business Enterprise Centre) represented PIPSO at the meeting. Regional organisations and the Director General of the World Trade Organisation also attended the meeting and discussed trade negotiations and economic reforms driven by the WTO. Also discussed was an MOU with the Pacific Regional Trade Development Facility with the Pacific Islands Forum Secretariat. Under the MOU WTO will work closely with the Forum Secretariat to provide trade related technical assistance to member countries of the Pacific Islands Forum.

“

US International Visitor Leadership Programme – US Trade Policy - 30th April – 18th May 2012 PIPSO CEO was a recipient of the above programme, which took place from 30th April to 18th May 2012. This programme was designed for economic and trade specialists, policy formulators, entrepreneurs and business leaders, legal specialists, academics, and journalists reporting on financial issues. She spent two weeks learning and examining U.S. trade interests, policies, and institutions, and the political, economic, social and cultural factors that affect U.S. trade policy. The programme explored efforts at the federal, state, local and private industry levels to increase American competitiveness in the global marketplace and the role of the U.S. in international trade agreements at the international and regional levels.

• To provide or facilitate technical advice and guidance on business developments in the Pacific • To identify the priority needs of members and provide appropriate assistance • Strengthen the capacity of members to develop strategic policies

Participants were provided insights on how the US Government crafted their trade policies and agreements and the various institutions that contributed to the formulation. Noticeably the private sector organisations make very important contribution to the trade policy formulation. This has been brought about by the well-organised structures of the private sector organisation who lobby and advocate for the interests of the private sector.

The Pacific needs to emulate the Carribean experience and work towards setting up a Regional Development Bank, with the specific goal of being able to provide not only Public Private Partneships financing but also ‘seed’ funding for SMEs and Women in Business.

“

Hafiz Khan

Part 3: Technical Support 26

1 Direct Funding Benefits

BDF Assistance by Industry - 2012

Business Development Fund The Business Development Fund is supported and funded by the Japanese Government. It was established to assist, small and medium enterprises (SMEs) of the Pacific Island Countries (PICs), which are characterised by limited financial resources, lack of access to capital, and often an undue reliance on debt. The grant scheme was reviewed in 2012 to align itself to the international standards and aspirations as with other grant facilities. Moreover, it was important that in addressing the confines in which Pacific businesses operate today, the BDF remains relevant to the country specific business environments giving businesses an opportunity to develop and grow their businesses for a thriving economy as a whole.

Manufacturing 17%

The key objectives under the facility included: • Strengthening Business capacities

•

Encouraging Product innovation

•

Increasing Business Competitiveness and Visibility

•

Capturing and building Markets

Additionally, it is important that the projects are able to demonstrate contribution to improved incomes and to livelihood opportunities or living standards of Pacific Island Communities. Projects should have a positive impact on the industry and other enterprises for that matter as well as to contribute to the empowerment of gender & youth. Furthermore, projects must not to have a negative environmental impact on the economy.

Tourism 26%

Fisheries 3%

Agriculture 19% Trade & Serivces 35%

BDF Assistance by Country - 2012

Tuvalu 3%

Kiribati 4%

Nauru 5%

Niue 2%

Fiji 2%

BDF Assistance by Type - 2012 PNG 6% Staff capacity & training 15%

Palau 4%

Tonga 28%

Vanuatu 2%

Participation at exhibition/ workshop 32%

Exploration visit 16%

Cook Is 14%

FSM 4% Samoa 26% Promotional Material 37%

Detailed List of BDF Recipients No

Name Afemai Fishing Company

BDF Recepients

Country

Industry

Tuvalu

Fisheries

Farmers Associa-

Kiribati

Agriculture

Manufacturing Association of Tonga

Heilala Vanilla Company Limited Sinalei Reef Resort & Spa

Tonga

Manufacturing

Participation at the FOODEX Japan in Tokyo on 6-9 March.

tial suppliers of raw materials and finished

Tonga

Agriculture

Samoa

Tourism

Participation at the South Pacific Food & Wine Festival in Nadi on 14-17 March. Production of promotional materials -post card memorabilia. Participation at the Fiji Village Arts Show at

Fiji Arts Council

Fiji

Tourism

Stuff I.T.

Niue

Trade & Services Development of website.

PNG

Agriculture

Tonga

Trade & Services

FSM

Trade & Services Development of website.

velopment Corporation Ltd

9 10

TT Diesel Yap Chamber of Commerce

Jones Enterprises

Tonga

Manufacturing

Treasure House

Samoa

Tourism

Tonga Forest

Tonga

Agriculture

Kauvai Agency

Wilex Samoa

Highland Paradise

Manufly Ltd

Seasonal Workers Agency

Cook Islands Samoa Cook Islands Cook Islands Vanuatu

Trade & Services Manufacturing Tourism Trade & Services

Mamanu Inc

Samoa

Trade & Services

Belau Tourism

Palau

Tourism

Matafonua Lodge

Tonga

Pacific Travel Solu-

Cook

tions

Islands

Isitolo Leota

Samoa

Trade & Services

Iti Prints

Nauru

Trade & Services

the World Cup Rugby in Auckland, NZ.

Produce documentary on development of coffee in PNG. Participation at the HAF Life Raft Service Training course in NZ.

Participation at the Fine Foods Fair in Melbourne, Australia. Produce promotional materials for marketing business. Produce promotional materials for marketing business. Develop promotional materials to facilitate marketing efforts. Exploration visit to USA to expand business markets. Develop marketing materials to increase the visibility of the business. Develop marketing materials to facilitate the marketing efforts of the business.

Trade & Services Exploration visit to NZ to expand business.

3,966.00

5,594.90

8,000.00

products for the Tongan market, 3-9 April.

Murray Coffee De-

Fisheries Boat Yard for 4 Weeks in February

Exploration visit to Malaysia to secure poten-

(MAT) 4

(FJD)

2012.

tion (KOFA) 3

Grant Amount

Boat Building attachment with Vanuatu

Kiribati Organic 2

Purpose

Tourism Tourism

Participation at the Fiji Fashion Week exhibition. Development of website. Assistance to attend Diving Equipment Marketing Association Show in USA. Assistance for website upgrade. Conduct business development exercise for staff to build staff capacity. Attend training course on screen printing in Brisbane.

7,135.00

1. TT Engineering and Marine (Tonga) Established in 1994, T.T Diesel Services is a sale and repair shop for outboard motors. Dealing in Marine chandlery, sale and repair of engines, equipment types, shore based or marine, parts, procurement, maritime advice and support and more, based in Neiafu, Vava’u in Tonga. T.T. Engineering was supported by PIPSO to participate at a Life Raft Service Training and Certification Workshop in New Zealand to be able to build staff capacities as well as the business’s image as the only recognised HAF Liferaft service technicians in Tonga.

4. Yap Chamber of Commerce (FSM) The Yap Chamber of Commerce is a member of the FSM Association of Chamber of Commerce who is a member of PIPSO. The Yap Chamber sought funding for the maintenance and marketing of its published website. Besides maintenance, updates, and marketing, the website contents and appearance required a lot of work. Tasks also included updating information, upgrading features, applying modifications, optimising page contents for fast loading, optimising database, creating regular site backups, and other tasks needed to keep the site running efficiently and effectively. 5. Kauvai Customs Agency Ltd (Cook Is) Kauvai Customs Agency has been in business since 2006 and is involved in customs clearance and documentation, handling custom matters relating to tariffs and duty on goods imported into the country and also documentation requirements for goods exported out of the Cook Islands. PIPSO supported Kauvai Customs to develop promotional materials, in a bid to market the business and generate opportunities in new markets.

2,560.59 2,341.78 2,336.93

8,025.00

3,870.00 5,000.00 3,235.00 4,505.00 3,304.65 2,896.81 10,025.00 6,725.00 5,025.00

2. Treasure House (Samoa) Established in 2012, Treasure House is a retailer of jewellery, watches, pearls and handicrafts. Its long-term goal is to make its own jewellery and handicraft. This is the only establishment of its kind in Savaii with two-full time staff. This business sought support to improve the businesses marketing and promotion efforts. A small business with much potential, the Treasure House wanted to grow its current clientele with a range of promotional products which were developed with the support of the fund and included the design of a logo, which was incorporated onto a new Street Sign, development of pamphlets and letterheads which could be distributed at various resorts and hotels on Savaii.

2,896.12 7,990.50 4,405.42 10,025.00 2,688.57 79,18.52

3. Taste of Tonga (Tonga) Trading as Jones’ Enterprise Ltd, Vava’u, this business is involved in the production of virgin coconut oil (VCO) and Taro Chips. Its current key markets are the domestic market in Tonga and Australia for it’s VCO. By the end of June they were shipping over 2,000 litres of VCO to Australia. Jones’ enterprise was supported to attend the Fine Food Fair to seek opportunities to grow their markets in Australia.

6. Highland Paradise Cultural Centre (Cook Is) Highland Paradise Cultural Centre is an activity centre that provides entertainment to tourists and locals alike. Situated in Rarotonga, the 205-acre property perched on the mountain has up to 400 visitors in a month. Highland Paradise is one of the few properties in the Cook Islands, which showcases traditional Cook Island living. PIPSO supported this business with the construction of signage at the entrance of the property near the main road, as there wasn’t any form of signage to direct people from the main road to the property. This was to improve the visibility of the property and potentially spur activity.

6,828.15

7. Wilex Samoa Soaps & Detergents (Samoa) Established in 1998, the company looks at agro-processing of soap and body oils. Very recently it expanded into Koko Samoa, a branded commodity from Samoa of cocoa based products. The company was looking to explore market opportunities in the United States of America with close liaison with a US-based company Deaborne International. PIPSO supported this market exploration visit to the US allowing this Samoan company to meet with potential buyers in the US for cocoa products as well as to identify the best product mix for the US markets. The Koko Samoa initiative supports the livelihood of a number of cocoa farmers in Samoa.

show. The FOODEX show was from 6 – 9 March, held in Mabuhari Messe (Nippon Convention Centre) in Tokyo Bay. PIPSO supported the participation of KOFA to this event on the recommendation of the KCCI.

to be able to develop marketing and promotional materials. PIPSO supported MCDCL to produce a short documentary on the company’s coffee development, which would be used to market the produce to potential international buyers.

10.

Manufacturing Association (Tonga) Established in 2009, the Manufacturing Association of Tonga (MAT) is a private sector group under the chamber of commerce from the manufacturing sector. MAT was established with the aim of identifying opportunities for its members and addressing issues to ensure its members develop into sustainable businesses that will contribute to the development and growth of the Tongan economy.

13.

PIPSO supported the MAT in its exploration visit to Malaysia on 3-9 April 2012, and this visit was an ideal opportunity for many to source machinery, packaging materials, and business contacts for products. MAT will be planning follow-up visits to other potential Asian markets in the future.

15.

11.

Heilala Vanila (Tonga) Heilala Vanilla Company Limited commenced business in 2001, establishing plantations in Ugtunake, Vava’u. This involved sourcing vanilla plants, clearing land, building plantation and other infrastructure (shade house, sheds, and accommodation for the manager, water and power supply).

8. Manufly Ltd (Cook Is) The company Manufly Ltd, is a retail shop in Rarotonga, selling mainly dry goods and dairy products. They sought assistance from PIPSO to construct a neon-lit sign outside the shop to be able to attract customers and visitors to the shop. With very slow business over the past few months, business owners realised the need to increase publicity and visibility with perhaps this simple form of marketing. PIPSO assisted Manufly in the form of marketing and promotion for the construction of the shop signage.

Sinalei Reef Resort (Samoa) Sinalei Reef Resort and Spa was founded in 1996. The hotel’s goal is to create an environment where guests are able to relax and enjoy their natural surroundings while creating memories. In 2009 the hotel suffered extreme damage from the tsunami that swept the South Coast of Upolu. Major reconstruction took place that saw the hotel close for 6 months. Upon re-opening, PIPSO assisted Sinalei Reef Resort with the production of promotional materials to market and sell the resort to its potential cliental both locally and overseas through its international network as well as through tourists who stay at the hotel.

PIPSO supported the participation of Heilala Vanila to the South Pacific Food & Wine Festival in Nadi on 14-17 March, which was a success for the product and the company.

16.

Tonga Forest Products Ltd (Tonga) Tonga Forest Products Ltd was formerly known as the Tonga Timber is currently presided over by new management since April 2011. Tonga Forest had attended Trade Pasifika in Nadi from the 25-27 June and was supported under the BDF in the development of its marketing materials including, banners and brochures. The impact of the materials as with any other marketing material is that the focus is to create awareness on Tongan Timber on a global level.

17.

Seasonal Worker Agency-Vanuatu (SWAV) (Vanuatu) SWAV is a recruitment agency facilitating the process of exporting labour to NZ under the Recognised Seasonal Employer (RSE) Scheme. PIPSO assisted the agency to conduct an 11-day visit to NZ (Hawkes Bay and Bay of Plenty) commencing on 8th December to explore opportunities with NZ RSEs & Farmers to secure positions for Vanuatu workers for the next season commencing in February 2013. This field exercise was conducted in preparation for the 2013 season as the company is seeking to expand services to other potential employers within the programme.

18.

Kiribati Organic Farmers Association (KOFA) Pacific Island Centre (PIC), Tokyo, invited Pacific Island countries to participate at the Food and Beverage Exhibition, FOODEX 2012, one of the biggest food shows in Japan. The Ministry of Commerce Industry and Cooperatives chose the Kiribati Organic Farmer’s Association, members who processed coconut value added products, to represent the country. KOFA was also entrusted with the products of other Kiribati’s companies/organisations, which they also displayed at the

Elefa Handicraft Shop (RMI) Elefa Handicraft Shop owned by Lucia Guavis, is a Marshall Islands company specialised in the export and distribution of fine Marshallese handicrafts, giftware, and decorations. PIPSO supported the participation of Elefa Handicraft Shop at Trade Pasifika 2012 held in Nadi, Fiji. The business was able to make a lot of new business contacts and markets for their products here in Fiji.

PIPSO funded the training to allow the owner/entrepreneur to attend a boat-building course in Santo, Vanuatu. The company plans to build outboard and inboard boats. The diversification of the business will provide a competitive edge for the company over its competitors.

14.

12.

Murray Coffee Development Corp Ltd (PNG) MCDCL is a coffee development project, which is the planting of coffee trees, which began in 2007. The company was formally registered in 2010. With the coffee plants now ready for its first ever harvest, the company began to look for assistance

Afemai Fishing (Tuvalu) Afemai Fishing Company began operations in 2005 and the business focuses solely on catching and selling fresh fish to the Tuvaluan community. With the business doing well, Afemai Fishing had immediate plans to expand its current operations to include a boat-building facility. With this new facility, it will be a new source of revenue and will reduce the business costs of purchasing new boats, which has been an expensive exercise over the years.

Mamanu Inc. (Samoa) Mamanu Inc. is an association of Samoan Elei printing businesses and boutiques. Mamanu Inc. is a member of the Samoa Chamber of Commerce and this application was made on behalf of four separate businesses:

•

Susana o Samoa

•

Gardenia Hinano

•

Malia’s

•

Loriana’s

The businesses are clothing boutiques involved in traditional hand painting of materials, designing and sewing. PIPSO supported these businesses participation at the Fiji Fashion Week, which ran from the 16th – 20th October 2012 in Suva, Fiji.

19.

Belau Tourism Association (Palau) BTA was established by private sector businesses in the Tourism industry to serve the growing interests of Tourism service providers in Palau. It currently provides customer service programmes and advocates for numerous legislations at both the national and state level. The association works closely with the Palau Community College’s Tourism & Hospitality School to develop various curriculums supporting the Tourism industry. PIPSO supported the BTA with the establishment of the website. With this website, the BTA will be able to promote its services better and also be able to promote its members via the website. It has plans to have the website promote their new AliiHost Fundamentals Customer Service Training Program for the North Pacific.

21.

Pacific Travel Solutions Ltd (Cook Is) This company is a travel agency from the Cook Islands. The company was looking to improve its website by incorporating an Adword Campaign. An online marketing tool which makes search engines pickup specific keywords that the customer uses to find products & services related to the business. PIPSO funded the upgrading and updating of the companies website

Matafonua Lodge (Tonga) A Beachfront Dive and Whale watch Resort on Foa Island in the Ha’apai Group. What started off as an accommodation and bar business expanded into a dive centre and whale watching business. The owners are avid divers having been in the profession for over 22 years. Support was provided to Matafonua Lodge to attend the Diving Equipment Marketing Association (DEMA) Show from the 14-17 November 2012 in Las Vegas, USA. The DEMA Show is the biggest Dive Show in the world and the business featured on behalf of Tonga on the list of the Exotic Dive locations in the world.

22.

Isitolo Leota (Samoa) This accounting firm was established in 1992 and provides accounting, auditing, taxation and general business advisory services to clients. The company in looking to expand its current scope of work was interested in developing business strategies in order to understand and implement appropriate strategies to different business scenarios. PIPSO supported a staff capacity building training which was planned for the 25 October – 1 November. This training was delivered by Mr. Courtney Clowes a consultant based in Australia from a company called Knowledge Equity. Iti Prints of Nauru Iti Prints is a product of UNDP funded programme – Nauru Entrepreneurship Development (NED). After acquiring a micro loan in 2010 from UNDP/NED the company was able to commence a printing business. To build the capacity of the staff PIPSO assisted the business to send 2 staff to attend a fabric printing workshop at the Brisbane Institute of Arts from 10th – 11th of November, 2012.

“

The Pacific is an integral part of the ACP grouping and the Pacific must be accorded equal fair share of the cake. It is on this note that I’m glad BizClim, amongst other operators in Brussels has been able to realize this particular concept and to make the dream come true.

“

Roy Mickey Joy – Vanuatu’s Ambassador to Brussels’ – 1st Pacific European Union Business Forum

Apart from funding training, attending workshops, policy and dialogue issues, PIPSO also provides other non-financial services to its members. Facilitation of Business Enquiries PIPSO facilitated business enquiries from many businesses and organisation. The secretariat connects enquiries to NPSOs and businesses directly. Likewise, it also facilitates any business enquiries from the region to the various offices of the Pacific Islands Trade and Invest.

23.

20.

Non-Financial Benefits 2 to members

Monthly e-newsletter The Secretariat sent out monthly newsletters to its members and networks via a service provided by Webmedia, a company that had been contracted in 2011 to revamp the website. The newsletter featured PIPSO’s activities during the month, upcoming events of both the Secretariat and other regional organisations and profiles of successful and innovative business people. However after August, it was decided to make the newsletter a quarterly publication. Providing Information The Secretariat keeps abreast of any upcoming business information and news. When it receives information that could benefit its members, the Secretariat forwards this information to its members who distribute it widely to their networks.

•

Trade show dates and venues

•

Scholarships and study opportunities

•

Upcoming training and capacity building opportunities

•

Newsletters from other regional organisations

•

Commodity Prices – palm oil, crude oil, coconut oil, coffee, cocoa

•

Interesting news articles – media

Assistance to University Students PIPSO also assists students seeking information to assist them with their assignments. Topics include: organisational structures, the work of regional organisations, private sector development, Millennium Development Goals, Policy Development, Economic Growth, Investment and so forth.

Business Surveys The Secretariat conducts regular research on issues affecting the private sector. Results of these surveys form the basis of publications and reports that PIPSO shares with its members.

•

Surveys conducted last year:

•

Access to finance - Kiribati and Solomon Islands

•

Progress of Pacer+ Consultations in member countries

•

NPSO Secretariats Survey

•

Women in Business Survey

•

Government Policies, regulations and assistance programmes for Women in Business survey

•

Cost of internet in the Pacific

Business Advice PIPSO provides advice and guidance to entrepreneurs with regards to business opportunities, investment, product development and exports. This includes other areas as follows.

•

Business refinancing

•

Investment opportunities

•

Licensing

•

Export and import duty and regulations

•

Regulatory requirements

•

Business ethics and corporate governance

•

Quality control

•

Product development

•

Marketing and Communications

•

Supporting letters

Facilitation of Regional and International Forums PIPSO facilitated private sector representatives and presentations at various regional and international forums. This is to ensure that the opportunity to present and be heard is maximized and that the key issues affecting the private sector in the region are continually advocated.

Training 3 PIPSO supported a number of trainings that was carried out across the Pacific for its members. The training is in two fold, one is for the capacity building of the NPSOs and the second is for businesses that are members of the NPSOs. There is a specific fund for NPSOs for capacity building, which is provided by the PLP (AusAID). It was established to support National Private Sector Organisations to build their capacity to provide better services to its members, build capacity of members when engaging in private and public dialogue and partnerships, build capacity of NPSOs to contribute effectively to national policies related to private sector development and investment at national, sub-regional and regional level.

the 3-day workshop, various presentations were made by the speakers regarding Public/Private partnerships.

Regional

Productivity Workshop, 20-21 September 2012, Fiji FCEF sought support from PIPSO for a workshop organised in collaboration with the New Zealand Business Mentors (NZBM) focused on improving productivity. This workshop was a result of the Business Mentoring Programme carried out by NZBM in Fiji, which highlighted the issues of poor productivity and work ethics among Fijian businesses. Due to poor productivity, many businesses are met with excessive overheads and unnecessary support services with poor efficiency. The objectives of the workshop include:

Leadership and Governance Workshop for PIPSO Board Members and National Private Sector Organisations Executive Members, 27th-28th February 2012, Nadi, Fiji In 2008 and 2009, PIPSO conducted a national private sector survey on its 14 member countries to ascertain the establishment and strength of the national private sector organisations. The results of the survey highlighted the different strengths and requirements of the NPSOs. One of PIPSO’s key activities is the capacity building of the NPSOs. In undertaking capacity building it has been established that NPSOs require strong leadership and governance at national level. This is important to build the credibility and accountability of the NPSOs, especially since they deal with national governments and development partners. In June 2010, PIPSO conducted a Regional Business Seminar, which covered the areas of building strong NPSOs and Effective Corporate Governance. As a follow up to that regional business seminar and NPSOs mentoring capacity, this workshop was conducted to reinforce and emphasise the leadership aspect which is lacking in many NPSOs. Strong leadership is essential to ensure that plans are implemented and issues that need to be addressed are followed. PPP May Denarau, Nadi - May 30th – 1st June 2012 The Public Private Partnership Roundtable meeting was held at the Radisson Resort from May 30th – 1 June, 2012. Representatives from 8 Pacific Island Countries were present for the meeting: Fiji, Samoa, Tonga, Kiribati, Vanuatu, PNG, Palau and Solomon Islands. In addition 2 representatives from Tuvalu and Cook Islands were also present as observers. Over

•

Strategising for leading and managing a productive business

•

Developing a sustaining productive business.

25 business participants from FCEF membership attended the training that was facilitated by Chris Elphick, Learn. Fast. Chris is a mentor under NZBM programme. Korea Yeosu Expo, Seoul Korea, 18th-22th July 2012 FCEF attended the Korea Yeosu Expo 2012, which was a trade exposition showcasing businesses from across the Pacific. Thereafter, FCEF signed an MOU with FCEF Korean counterparts FKI. FKI is one of the most prestigious economic organisations in Korea and its primary objective is to promote Korea’s international interests in relation to trade and growth. This MOU is to facilitate more trade and business opportunities between Korean and Fijian businesses. Financial Management Workshop: Kiribati and Solomon Islands (13 -14 April 2012) Access to finance is a key impediment to the development and growth of many of our small businesses. A lot of this is due to poor financial literacy, lack of visibility and communication on the part of financial institutions, and lack of focus on the

development of small businesses because of the associated risks involved. PIPSO in collaboration with ANZ Bank (Kiribati and Solomon Islands) conducted two Financial Management Workshops covering key topics including:

•

Adequate Record Keeping

•

Preparation of financial statements including Balance Sheet, Profit & Loss Statement, and Cash flow Statement

•

Preparing a Business Plan and Marketing Plan for your business

•

Managing your working capital

•

Accessing finance / Types of Finance

•

What banks require to provide finance

•

Identifying key challenges for your business and how to grow your business.

These workshops proved to be a success with anticipation that such workshops could be replicated in other countries.

Youth Entrepreneurship Programme: Tonga and Palau In the Pacific, more education and a healthier outlook have not resulted in more chances of finding paid work (State of Pacific Youth). PIPSO in collaboration with the Tonga Chamber of Commerce as well as the Palau Chamber of Commerce designed Youth Entrepreneur Schemes to stimulate entrepreneurial for the youth in these countries. Modeled on the YEP Program out of Canada and the YES Program from the United States, the Youth Entrepreneurship Training Project (YET Project) aimed to provide young talents with a window of opportunity to hone their talents and turn these into a lucrative business venture. The project is an outcome of the Sub regional Workshops conducted in the region in 2011 that looked to address the development goals under the MDG Goals.

In the true spirit of ‘private sector development’, it is envisaged that in creating a business-acumen/culture among younger adults it will to establish lucrative businesses that could in turn offer employment for people, income for families and progress the development of country. PIPSO supported the development of Project Proposals and successfully sought funding from the UNDP-Pacific Centre for these projects. The Youth projects were run successfully in both Tonga and Palau. Clean & Green Industries Showcase and Leaders’ Breakfast: Cook Islands – 28th -31st August 2012 The 43rd Forum Leaders’ Dialogue took on the theme of a ‘Clean and Green Industries: Promoting Sustainable Businesses in the Pacific’. In line with this, the Cook Islands Chamber of Commerce with some financial support from PIPSO, hosted a Clean and Green Industry Showcase highlighting the importance of maintaining Pacific environment while at the same time building sustainable businesses and providing for economic development. The Showcase put on display different sized industries that are doing their part to develop businesses while also caring for the environment. In addition to this, PIPSO also co-funded the Breakfast Programme with Leaders organised by the Cook Islands Chamber of Commerce. The two-day dialogue focused on innovative approaches to a sustainable clean and green environment, sustainable finance for Pacific entrepreneurs, and sustainable workforce, touching on issues relating to resource and development. Niue Private Sector Strategic Development PIPSO assisted the Niue Chamber of Commerce to develop its Strategic Development Plan for 2012-2015. This included the review of the strategies created five years ago and developed a new plan designed to grow the private sector. The developed plan considered all constraints to the growth of the private sector. The Niue Private Sector Strategic Plan was finalised and approved by the Niue Chamber of Commerce.

Operations 1 Finance The PIPSO Secretariat has had another successful year in terms of programmes and work activities for 2012. PIPSO received a total funding of $1,551,329 compared to $999,695 in 2011. The increase in funding reflects the increased work activities and initiatives that PIPSO has been involved in during the year. Pacific Leadership Program, as always, continued to be PIPSO’s foremost co-funder and provided support for the Secretariat’s programme/activities as well such as the Trade Pasifika and the Women In Business Conference. The Government of Japan and the Pacific Islands Forum Secretariat also continued its support to the Secretariat through the Business Development Fund and Pacific Integration Technical Assistance Program (PITAP) respectively. In addition to the above, PIPSO also partnered with the ACP Business Climate Facility Program (BizClim) in two projects. Although these projects did not involve any direct funds flowing through to PIPSO, the value and outcomes derived were quite significant.

• Continue strengthening the Secretariat to provide effective services to its members

PIPSO Membership For the first time since PIPSO’s inception in 2007, all the 14 NPSOs had settled their membership dues. PIPSO also gained two new associate/affiliate members namely Pacific Cooperation Foundation and Learn Fast NZ. Review & Amendment Of BDF and CBF Guidelines In 2011, the Secretariat had reviewed the BDF guidelines to aid in the access of the assistance scheme. In 2012, these guidelines were reviewed further to ensure that all businesses are able to apply for the assistance scheme through the respective NPSOs. The Capacity Building Fund guidelines were also reviewed to make the funds accessible to the NPSOs with ease for various activities that they carry out during the year. The revised guidelines were disseminated to all NPSOs and are also available on the PIPSO website.

Part 4: Secretariat

Staffing The Secretariat’s Project Officer, Elisabeta Boletawa resigned from PIPSO in May 2012. Elisabeta was with PIPSO since the Secretariat’s inception in 2007 and has provided much valuable input to PIPSO over the years. In August 2012, two new staff joined the Secretariat. An additional Programme Officer, Winifred Gauna joined PIPSO from the Reserve Bank of Fiji (RBF). Erica Lee joined PIPSO as the Communications & Research Officer from the Fiji Independent Commission Against Corruption (FICAC). Casey Morecroft from ANZ Australia also joined PIPSO for a short period (January to April) as part of the Australian Volunteers Program. While with PIPSO, she used her expertise to provide financial training to NPSOs. Annual General Meeting & Trade Pasifika - 28th June 2012 PIPSO held its 6th AGM on 28th June, which was attended by all the 14 NPSO representatives. Apart from a number of important issues and decisions discussed, PIPSO also held its general elections in the AGM with the new Chairman and Vice-Chair being elected for PIPSO along with new board members. Induction training was carried out for the new board members. Out-going members: • Hafiz Khan, Fiji (PIPSO Chair)

•

Epa Tuioti, Samoa (PIPSO Vice-Chair)

•

Teresa Manarangi-Trott, Cook Islands (Board Member)

•

Martin Tofinga, Kiribati (Board Member)

•

Francis Remengesau, Palau (Board Member)

New Board Members • Paula Taumepeau, Tonga (elected as PIPSO Chair)

•

Mark Matthews, Fiji (PIPSO Vice-Chair, resigned December 2012)

•

Katarina Tofinga, Kiribati (Board Member)

•

Klaus Stunzer, Samoa (Board Member)

•

Avraham Rubin, Niue (Board Member)

•

Bruce Saunders, Solomon Islands (Alternate Board Member)

Council members at PIPSO’s Strategic Planning workshop in Nadi, Fiji A resolution was also passed at the AGM to amend PIPSO’s constitution to include the immediate past Chair and ViceChair in the Board as Ex-officio members. The AGM was held concurrently with Trade Pasifika, a threeday event held at Sheraton Nadi. PIPSO Strategic Planning PLP Consultant on the Strategic Planning Workshop – 12th – 14th September 2012 Prior to the Strategic Planning Workshop, the assistance of a Strategic Support Adviser was provided by the PLP to work with PIPSO’s CEO and staff to undertake a range of preliminary planning and focusing exercises in preparation for the workshop. The Adviser also provided a summary report of the assignment with her thoughts about the emerging role and initial impressions and observations in relation to the key support areas identified by PIPSO; preliminary thoughts and recommendations for future directions; and identification of key risks and challenges, and ways to manage these. Strategic Planning Workshop PIPSO held its strategic planning workshop from September 18th – 20th where PIPSO’s performance for the period 20102012 was reviewed. PIPSO’s strategic goals and key focus areas for the next three years (2013 – 2015) were also established.

Mission Statement: “To lead the facilitation of private sector-driven economic growth for the benefit of the region”. Revised Strategic Goals: • Build strong and responsive NPSOs

•

Promote and facilitate greater cooperation and information sharing with the private sector

•

Improve private sector dialogue and partnerships with government and partners;

•

Facilitate and build private sector business, trade and competitiveness

•

Strengthen private sector involvement in national and regional policy development and support implementation

•

To maintain a sustainable, effective and relevant PIPSO

Installation of Office Signage An office signage has been installed outside the Secretariat Office to enhance its visibility. PIPSO contracted a marketing firm to design and install the office/business signage with contact details of PIPSO.

PIPSO’s Mission Statement and Strategic Goals were amended during workshop to reflect the changing role of PIPSO over the years: All in all, this has been another successful year for PIPSO with most of the work activities completed as planned.

Part 5: Tables & Statistics 40

Tables and Statistics

Direct Financial Benefits to Members 2011 - 2012

Regular Members: 1

Cook Islands Chamber of Commerce (CICC)

Federated States of Micronesia Association of Chambers of Commerce (FSMACC)

Fiji Commerce & Employers Federation (FCEF)

Kiribati Chamber of Commerce

Marshall Islands Chamber of Commerce

Nauru Chamber of Commerce

Niue Chamber of Commerce (NCOC)

Palau Chamber of Commerce (PCOC)

Papua New Guinea Chamber of Commerce & Industry (PNGCCI)

Samoa Chamber of Commerce Inc (SCCI)

Assistance by Countries 2011

Solomon Islands Chamber of Commerce & Industry (SICCI) Tonga Chamber of Commerce & Industry (TCCI)

Tuvalu National Private Sector Organisation (TNPSO)

Vanuatu Chamber of Commerce & Industry (VCCI)

Business Mentors NZ

Cook Is. 9% Nauru 5%

Kiribati 3%

Niue 5%

RMI 9%

Associates & Affiliates Australia Pacific Islands Business Council

Fiji 4%

Tuvalu 8%

Vanuatu 4%

Tonga 6%

Samoa 7%

Solomon Is 5%

FSM 10%

Fiji Export Council

Pacific Cooperation Foundation

Pacific Islands Small Business Development Centre Network

PNG 12%

Palau 13%

Subscription per country vs total assistance per country

Assistance by Countries 2012

150,000

Vanuatu 3.05%

Tonga 7.82%

Fiji 3.29%

Cook Is. 6.88% Nauru 7.19%

Tuvalu 3.30%

120,000 90,000

Kiribati 8.56%

60,000

Niue 6.35%

30,000

RMI 7.20%

Subscription per country

2011

2010

2012

To ng a

u Va nu at u

Tu va l

at i rib

M FS

au Pa l

G PN

m oa So lo m on Is .

iu N

au ru N

Is .

Co ok

Samoa 7.37%

FSM 8.92%

Solomon Is 6.28%

Palau 14.41%

PNG 9.38%

Direct Financial Benefits to Members 2011 - 2012 Capacity Building 6%

Categories of Assistance to PIPSO Members 2011

NPSO Visits 10% Working group meetings 8%

BDF Funding 20%

Direct Financial Benefits by Region 2012

Melanesia 22%

Micronesia 46%

Building partnerships & relations 2%

Workshops/ Trainings 28%

Northern PPD 12% Polynesia 32%

AGM & Business seminar 14%

Categories of Assistance to PIPSO Members 2012

Capacity Building 3%

Direct Financial Benefits by Economy Size 2012

Financial Training 1% NPSO Visits 4% Leadership & Governance 15%

Women in Business 30%

Large Economies 13%

Medium Size Economies 24%

PPP Roundtable 7%

Northen PPP 4%

BDF Funding 12% Strategic Planning 10% AGM 12%

Trade Pasifika Assistance 2%

Small Economies 63%

1,000.00 3,000.00

Niue Samoa

10,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 3,000.00 3,000.00 40,000.00

PNG Palau FSM RMI Kiribati Tuvalu Vanuatu Tonga TOTAL

Is.

3,000.00

1,000.00

Nauru

Solomon

1,000.00

10,000.00 -

42,264.66

8,400.44

10,885.60

22,978.62

Visits

try

Per Coun-

Cook Is.

Fiji

Country

Npso

tion

Subscrip-

17,646.12

68,845.93

18,447.36

152,022.49

- 14,250.24

26,919.82

5,337.25

8,448.50

7,209.60

19,461.83

7,262.46

3,625.15

11,117.21

5,610.46

4,389.60

6,084.04

10,075.16

4,929.65

14,027.20

10,092.46

8,661.04

14,933.65

3,003.71

10,228.96

3,357.15 -

table

nance

45,317.35

17,461.74

13,605.37

Round-

& GoverPpp

Ppp

Leadership Northern

- - - 5,244.00 1,332.40 3,751.65 6,758.10 - - - - - - 3,456.10 20,542.25

17,335.38 6,828.15 2,336.93 32,999.61 0.00 8,025.00 4,405.42 5,000.00 - 5,594.90 3,966.00 2,896.12 35,569.65 127,298.94

sistance

sifika As-

Trade Pa-

2,341.78

Funding

Bdf

122,722.03

6,100.46

4,636.46

7,517.46

12,540.96

10,779.19

17,367.18

18,867.31

13,007.96

8,192.06

5,542.96

7,375.68

0.00

10,040.03

754.26

Agm

1,028,859.86

5,876.98

1,399.94 - 9,390.76 - 7,025.00 -

2,025.00 27,141.60

26,874.89 23,325.50 17,620.72 12,229.07 18,430.26 40,920.90 46,362.44 23,977.85 31,353.82 20,353.07 12,408.07 12,097.07 13,407.68 311,146.16

6,522.82 6,775.27 13,296.59 13,135.26 0.00 8,267.95 18,621.07 9,550.77 0.00 13,076.82 0.00 3,771.82 7,401.26 105,681.47

- 2,938.49

2,938.49

7,300.90

11,784.87

5,261.82

Training

6.88% 7.19% 6.35% 7.37% 6.28% 9.38% 14.41% 8.92% 7.20% 8.56% 3.30% 3.05% 7.82%

70,834.11 73,934.74 65,339.85 75,779.42 64,569.56 96,545.63 148,243.27 91,804.91 74,029.37 88,067.30 33,983.99 31,416.23 80,507.01

100.00%

3.29%

tance

Assis-

% Total

33,804.50

Country

Building

Business

Total Per

Planning

cial

Capacity

Solomon Is. (3)

Women In

Finan-

Samoa (3)

Strategic

Direct Financial Benefits to Members 2012

Australia (1)

Kiribati (1)

“ Leaders also considered key messages on improving effectiveness of development efforts in the region: develop inclusive and mutually accountable partnerships, recognising the important role of new and emerging development actors, as well as civil society and the private sector. 2012 Forum Leaders Communique

“

Trade Pasifika Exhibitors by Countries Tonga (3)

Niue (1)

Vanuatu (2)

RMI (1)

Fiji (37)

PNG (15)

Exhibitors at Trade Pasifika 2012

Enterprise

Country

Air Pacific Ltd

Fiji

The Balthan Group: Balthan

Fiji

Bank South Pacific (BSP)

Fiji

Bris Kanda Incorporated

PNG

Cas Scales (Fiji) Ltd

Fiji

CJ Patel

Fiji

Cocker Enterprises Ltd

Tonga

Elefa Handicraft Shop

Marshall Islands

Export Freight Services

Fiji

10.

Fairtrade ANZ

11.

Fiji Export Council (FEC)

Fiji

12.

Fiji Ports Corporation Ltd

Fiji

13.

FMF Foods

Fiji

14.

Foods Pacific Ltd

Fiji

15.

Fosters Group Pacific Ltd

Fiji

16.

Fragrance Flowers

Solomon Islands

17.

Goodman Fielder Int’l

Fiji

18.

Innovative Training Services PNG

PNG

19.

Investment Fiji

Fiji

20.

Investment Promotion Authority of PNG

PNG

21.

Kahuna Herbal Products

Fiji

22.

Kokonut Pacific

Solomon Islands

23.

Lapita Cafe

Vanuatu

24.

Loriana’s

Samoa

25.

Motibhai & Co

Fiji

26.

Natural Foods

Samoa

27.

Natures Finest

Fiji

28.

Niue Vanilla International

Niue

29.

Pacific Co-operation Foundation (PCF)

New Zealand

30.

Pacific Green

Fiji

31.

Pacific Islands Private Sector Organisation (PIPSO)

Regional

32.

Pronto Software

Australia

33.

Purple Investment

Solomon Islands

34.

Ram Sami & Sons Ltd

Fiji

35.

Secretariat of the Pacific Communities

Regional

36.

Solar salt, Christmas Island

Kiribati

37.

Sunweave International

Fiji

38.

Tanna Coffee

Vanuatu

39.

TH Plantation

Samoa

40.

Tokino Pearls

Fiji

41.

Tonga Forest Products Limited

Tonga

Transam

Fiji

Virgin Coconut Oil (VCO) – FACT – SPC

Regional

Williams and Goslings

Fiji

ATH inTouch

Fiji

Pacific Coatings Limited - (Dulux Paints)

Fiji

CJS Group

Fiji

Part 6: Audited Financial Statements

Index

Directors’ Report

Page No.

In accordance with a resolution of the Board of Directors, the directors herewith submit the balance sheet of the organisation as at 31 December 2012, and the related statements of income and expenses and cash flows for the year ended on that date and report as follows:

Directors’ Report

Statement by Directors

Independent Auditor’s Report

Statement of Income and Expenses

Balance Sheet

Cash Flow Statement

Notes to the Financial Statements

Detailed Income Statement

DIRECTORS The following were directors of the organisation at any time during the financial year and up to the date of this report: Paula Taumoepeau – Chair Mark Matthews – Vice Chair (appointed 28 June 2012 - resigned 3 December 2012) Howard Politini – (appointed 15 January 2013) Hafiz ud Dean Khan Kenneth T. Ayehura Epa Tuioti John Leahy Katarina Tofinga (appointed 28 June 2012) Klaus Stunzer (appointed 28 June 2012) Avraham Rubin (appointed 28 June 2012) Bruce Saunders – alternate director (appointed 24 September 2012) Teresa Manarangi-Trott (term expired 28 June 2012) Martin Tofinga (term expired 28 June 2012) Francis Remengesau (term expired 28 June 2012)

PRINCIPAL ACTIVITIY The principal activity of the organisation is to be the premiere regional organisation to represent the interests of private enterprise regionally and internationally. During the year ended 31 December 2012 there has been no material change in the nature of the organisation’s activities or in the classes of activities in which the organisation has an interest.

OPERATING RESULTS The surplus in income over expenditure for the year ended 31 December 2012 was $127,089 (2011: $44,104).

RESERVES The directors recommend that no amounts be transferred to reserves in respect of the year ended 31 December 2012

BAD AND DOUBTFUL DEBTS The directors took reasonable steps before the financial statements were made out, to ascertain that all known bad debts be written off and adequate provision was made for doubtful debts. In 2012, the provision for doubtful debts is nil (2011: $7,515) and $6,021 have been written off (2011: nil) which related to the membership fee and registration fee from several members.

CURRENT ASSETS The directors took reasonable steps before the financial statements were made out to ascertain that the current assets of the organisation were shown in the accounting records at a value equal to or below the value that would be expected to be realised in the ordinary course of the business. At the date of this report, the directors are not aware of any circumstances, which would render the values attributable to the current assets in the organisation’s financial statements misleading.

BASIS OF ACCOUNTING The directors believe the basis of the preparation of financial statements is appropriate and the organisation will be able to continue in operation for at least twelve months from the date of this report. Accordingly the directors believe the classification and carrying amounts of assets and liabilities as stated in these financial statements to be appropriate. The directors believe that at the date of this statement there are reasonable grounds to believe the organisation will be able to pay its debts as and when they fall due. 51

Directors’ Report (continued) 8

Statement by Directors

EVENTS SUBSEQUENT TO BALANCE DATE No charge on the assets of the organisation has arisen since the end of the financial year to the date of this report to secure the liabilities of any other person. No contingent liability has arisen since the end of the financial year to the date of this report. No contingent or other liability has become enforceable or is likely to become enforceable within a period of twelve months after the end of the financial year which, in the opinion of the directors, will or may affect the ability of the organisation meet their obligations as and when they fall due.

OTHER CIRCUMSTANCES At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial statements, which would render any amounts stated in the financial statements misleading.

UNUSUAL TRANSACTIONS The results of the company’s operations during the financial year have not in the opinion of the directors been substantially affected by any item, transaction or event of a material and unusual nature other than those disclosed in the financial statements.

In the opinion of the directors: (a)

the accompanying statement of income and expenses is drawn up so as to give a true and fair view of the results of the organisation for the year ended 31 December 2012,

(b)

the accompanying balance sheet is drawn up so as to give a true and fair view of the state of the organisation’s affairs as at 31 December 2012,

(c)

the accompanying cash flow statement is drawn up so as to give a true and fair view of the cash flows of the organisation for the year ended 31 December 2012.

Signed in accordance with a resolution of the directors this 24th day of April 2013.

DIRECTOR

DIRECTOR DIRECTOR

Independent Auditor’s Report R

Opinion Independent Auditor’s Report R

Report on the Financial Statements S

In our opinion the financial statements give a true and fair view of the financial position of the To the Board of Directors of the Pacific Islands Private Sector Organisation Organisation as at 31 December 2012, 2012, and of its financial performance and its cash flows for the year then ended in accordance with the IFRS for SMEs. Report on the Financial Statements S

We have audited the accompanying financial statements of Pacific Islands Private Sector Organisation (the ‘Organisation’). The financial statements comprise the balance sheet of the Organisation as at 31 December 2012 and the statements of income and expenses and cash flows for the yea year then ended and a summary of significant accounting policies and other explanatory notes notes.

We have audited the accompanying financial statements of Pacific Islands Private Sector Organisation Report on Other Legal and Regulatory R Requirements (the ‘Organisation’). The financial statements comprise the balance sheet of the Organisation as at 31 December 2012 and the statements of income and expenses and cash flows for the yea year then In our opinion: ended and a summary of significant accounting policies and other explanatory notes notes.

Directors' and Management’s Responsibility for the Financial Statements

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal interna l control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the e entity’s internal control. control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by directors and management, as well as evaluating the overall presentation of the financial statements.

a) proper books of account have been kept by the Organisation, Organisation, so far as it appears from our Directors' and Management’s Responsibility for the Financial Statements examination of those books, books and Directors and Management are responsible for the preparation and fair presentation of these financial b) the accompanying financial statement in agreement with the books offor account the best statements in accordance with statements InternationalareFinancial Reporting Standards Smalland andtoMediumour information according to the explanatio given to us sizedofEntities (IFRS forand SMEs) and with theexplanations requirements of the Fiji give Companies Act, 1983 1983, and for the information required by Fiji Companies Act,the 1983 in the manner so required. determine is necessary to enable the suchthe internal control as directors and management preparation of financial statements that are free from material misstatement, whether due to fraud or We have obtained all the information and explanations which to the best of our knowledge and belief error. were necessary for the purposes of our audit. Auditor’s Responsibility Restriction riction on Distribution or Use Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require This report is made solely to the Board of Directors of the Organisation,, as a body, in accordance with that we comply with ethical requirements and plan and perform the audit to obtain reasonable Section 165(1) of the Fiji Companies Act 1983. Our audit work has been undertaken so that we might assurance about whether the financial statements are free from material misstatement. state to the Company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. urpose. To the fullest extent permitted by law, we do not accept or assume An audit involves performing procedures to obtain audit evidence about the amounts and disclosures responsibility to anyone other than the Organisation and its Board of Directors as a body, for our audit in the financial statements. The procedures selected depend on the auditor’s judgment, including the work, for this report, or for the opinions we have formed. assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal interna l control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the e entity’s internal control. control. An audit also includes evaluating the appropriateness of Suva, Fiji PricewaterhouseCoopers accounting policies used and the reasonableness of accounting estimates made by directors and Chartered Accountants management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

PricewaterhouseCoopers, Coopers, Level 8 Civic Tower, 272 27 Victoria Parade, Suva, Fiji. GPO Box 200, Suva, Fiji. 199, F: (679) 3300981 / 3300947 T: (679)3313955 / 3315199,

PricewaterhouseCoopers is a member firm of PricewaterhouseCoopers International Limited, each each member firm of which is a sepa separate legal entity.

To the Board of Directors of the Pacific Islands Private Sector Organisation

Directors and Management are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards for Small and Mediumsized Entities (IFRS for SMEs) and with the requirements of the Fiji Companies Act, 1983 1983, and for such internal control as the directors and management determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

STATEMENT OF INCOME AND EXPENSES

BALANCE SHEET

For the year ended 31 December, 2012

Notes

For the year ended 31 December, 2012 2012

2011

Grant revenue

1,434,840

926,344

In-kind contributions â&#x20AC;&#x201C; without cash in-flow

62,757

19,642

Other income

53,732

53,709

1,551,329

999,695

Salaries and wages

(237,986)

(226,697)

Duty travel

(11,106)

(15,881)

(147,841)

(116,147)

Consultancy fees Business development grants Programmes:

- NPSO capacity building

(27,142)

- Mentoring program

(22,585)

Notes

497,922

368,997

Receivables

414

15,823

Refundable deposits

4,095

3,895

502,431

388,715

13,201

12,125

515,632

400,840

15,482

27,779

15,482

27,779

492,407

365,318

7,743

500,150

373,061

Non-Current Assets Property, plant and equipment

(18,731)

- Public/Private sector dialogue

(121,077)

(79,202)

Current Liabilities

(50,964)

Payables and accruals

(125,322)

(89,264)

(39,915)

(63,158)

LIABILITIES

(6,562)

(8,987)

- Meetings/workshop attendance

(3,409)

(14,736)

EQUITY

(107,062)

(59,846)

Accumulated surplus

127,089

44,104

365,318

321,214

Accumulated surplus at the beginning of the year Accumulated surplus at the end of the year

492,407

365,318

The above statement of income and expenses is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 59 - 67.

TOTAL LIABLITIES

- Training

Surplus for the year

TOTAL ASSETS

(178,287)

Other expenses

Cash on hand and in bank

- Private sector mentoring visits

Current Assets

(607,924)

- AGM and business seminar

2011

ASSETS

- Sub-regional / regional workshops - Industry working group meetings

2012

Donor grant reserve

TOTAL EQUITY TOTAL LIABILITIES AND EQUITY

515,632

400,840

The above balance sheet is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 59 - 67. These financial statements are approved in accordance with a resolution of the Board of Directors. For and on behalf of the Board

DIRECTOR DIRECTOR

CASH FLOW STATEMENT

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 31 December, 2012

For The Year Ended 31 December 2012 Notes

2012

2011

Cash flows from operating activities Membership fees

64,510

38,135

Operating

1,434,840

945,986

Project

(142,999)

(157,463)

8,562

2,720

(1,228,577)

(809,294)

136,336

20,084

Grants:

Registration fees Payments to suppliers Net cash provided by operating activities Cash flows from investing activities Acquisition of property, plant and equipment

(7,411)

(8,614)

Net cash used in investing activities

(7,411)

(8,614)

Net increase/(decrease) in cash and cash equivalents

128,925

11,470

Cash and cash equivalents at the beginning of the year

368,997

357,527

Cash and cash equivalents at the end of the year

497,922

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements prepared by Pacific Islands Private Sector Organisation are in accordance with the ‘IFRS for Small and Medium-sized Entities’ issued by the International Accounting Standards Board. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1

Basis of Accounting The financial statements of Pacific Islands Private Sector Organisation have been prepared in accordance with the ‘IFRS for Small and Medium-sized Entities’ (IFRS for SMEs). They have been prepared under the historical cost convention.

2.2

Cash and cash equivalents For the purpose of cash flow statement, cash and cash equivalent assets comprise cash on hand and at bank.

2.3

Receivables Receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

2.4

Foreign currency (a) Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements are presented in Fiji dollars, which is the company’s functional currency.

368,997

The above cash flow statement is to be read in conjunction with the notes to and forming part of the financial statements set out on pages 59 - 67.

1 GENERAL The principal activity of the organisation is to represent the interests of private enterprise regionally and internationally. The company is limited by guarantee and not having a share capital, incorporated and domiciled in the Republic of Fiji and its registered office is located at Lynica House, 3 Goodenough Street, Suva. The financial statements were authorised for issue by the Board of Directors on 24th of April 2013.

(b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in surplus or deficit.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2012 2

For the purpose of the cash flow statement, the cash and cash equivalents comprise the following:

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2.5

CASH AND CASH EQUIVALENTS

Plant and equipment The company records all plant and equipment at cost, less subsequent depreciation. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.

2012

2011

Cash at bank

497,722

368,797

200

Petty Cash $

497,922

368,997

All repairs and maintenance expenditures are charged to the statement of income and expenses during the financial year in which they are incurred. Gains or losses on the disposal of plant and equipment are recognised in the statement of income and expenses.

Depreciation is provided on plant and equipment on a straight line basis so as to write off the cost of assets over their expected economic life. The rates currently adopted by the company for furniture, fittings and equipment are 25% - 33% per annum.

2.6

2.7

2.8

2.9

Provisions Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Revenue recognition Revenue for the company comprises mostly of grant income and membership fees and they are recognised when the right to receive payment is established. Income tax The organisation’s income is exempt from income tax in accordance with Section 17 (24) of the Income Tax Act. Comparatives Where necessary, comparatives have been adjusted to conform to changes in the presentation for the current year.

REFUNDABLE DEPOSITS $

$ 2,995

2,995

Others

1,100

900

4,095

3,895

RECEIVABLES

Subscriptions

2012

2011

$ -

23,340

- Fiji

(5,000)

- Marshall Islands

(2,515)

- Solomon Islands

Net Subscriptions

15,825

Registration fees receivable

414

(2)

Less: Provision for doubtful debts for the following

- Nauru

Other debtors $

2011

Rental bond

$ 5

2012

414

15,823

PLANT AND EQUIPMENT Plant and equipment have been included in the financial statements on the following basis: Office Equipment

Total

($)

21,935

5,790

27,725

Accumulated depreciation

(8,969)

(5,555)

(14,524)

235

At 31 December 2011

9,473

2,652

12,125

Additions

6,986

425

7,411

(3,493)

(2,842)

(6,335)

Disposals At 31 December 2012 7

12,966

235

Accruals and other payables $

13,201

16,113

237,986

226,697

2012

2011

Audit fees

8,663

4,766

Debts written off

6,021

GRANTS 2012

2011

Australian Agency for International Development

13,463

27,779

Government of Japan

27,779

Pacific Islands Forum Secretariat

- Pacific Leadership Program

1,240,239

676,362

142,999

157,263

22,748

15,000

28,854

77,719

- PITAP 8

18,103

13,576

210,584

7,515

2,019 15,482

219,883

Reversal of / (provision for) doubtful debts

2011

$ Membership fees received in advance

SURPLUS FROM OPERATIONS

PAYABLES AND ACCRUALS 2012

The surplus for the year has been determined after charging the following as expenses:

3,201

Carrying Amount

Depreciation charge

2011

Fiji National Provident Fund

Cost

$ 12,966

2012

Salaries and wages

Office Furniture and fittings

Carrying Amount

SALARIES AND WAGES

- Training Program

CONTINGENT LIABILITIES There were no contingent liabilities as at 31 December 2012 (2011: Nil).

9 COMMITMENTS The company leases an office space under a cancellable operating lease agreement at an annual rental of $2,440 VEP. The lease term is for 3 years expiring on 30th June 2014. The lease agreement is renewable at the end of the lease period at market rate. The company is required to give three-months notice for the termination of the lease agreement.

Pacific Cooperation Foundation United Nations Development Program - Sub-regional workshops $

1,434,840

926,344

IN-KIND CONTRIBUTIONS WITHOUT CASH IN-FLOW 2012

2011

Pacific Islands Forum Secretariat - Pacific Integration Technical Assistance Program

62,757 $

62,757

19,642 $

19,642

During the year PIPSO also partnered with the United Nations Development Program (UNDP), ACP Business Climate Facility (BizClim) and Pacific Cooperation Foundation (PCF) on several projects as follows:

(i)

(ii)

(iii)

(iv)

(v)

OTHER INCOME (continued) Membership fee comprises of the following:

UNDP - Youth Entrepreneurship Scheme (YES) PIPSO worked with Palau SBDC and the Tonga Chamber of Commerce to develop project proposals to address the unemployment issue with the Youths. The scheme looked at providing youths with particular business ideas supported by training, mentoring and assistance in securing the necessary financial support from banks and financial institutions. These projects were pilots. BizClim - EU Business Forum This was the Pacific – European Union business forum that took place in Port Vila, Vanuatu in June. The purpose of the project was to facilitate Public-Private Dialogue on private sector development issues that would support EU-ACP business endeavours.

2012

2011

Tonga

3,000

Marshall Islands

1,000

Kiribati

1,000

406

Cook Islands

1,000

Nauru

1,000

10,000

Samoa

3,000

Tuvalu

1,000

500

Niue

1,000

685

10,000

Solomon Islands

3,000

Palau

1,000

951

Federated States of Micronesia

1,000

Vanuatu

3,000

1,015

171

- Fiji Export Council

1,000

- Australia Pacific Islands Business Council

1,015

- NZ Business Mentors

1,015

954

484

Papua New Guinea

BizClim – Value Supply Chain The purpose of this project was to empower key stakeholders (in terms of knowledge, capacities and analysis) in undertaking business environment reforms and creating more favourable business and investment conditions in the Pacific Region.

Fiji

BizClim - CARIFORUM Business Forum Biz Clim supported the participation of 7 Pacific Businesses to the CariForum Business Forum held in London from 6-10 August. This was an opportunity for Pacific Businesses to meet with African and Carribean Businesses as well as to identify opportunities from the examples or programmes set by businesses in these countries.

Associates & Affiliates - Pacific Cooperation Foundation

PCF – Marketing & Quality Assurance PIPSO in collaboration with PCF embarked on a project to develop a training toolkit to assist Pacific Island businesses with their marketing requirements and meeting quality assurance levels to be able to export into overseas markets.

- LearnFast NZ

OTHER INCOME

- Pacific Islands Small Business Development Centre Network

The breakdown of other income is as follows: 2012

2011

Membership fees

45,170

41,056

Registration fees

8,562

2,720

9,933

Other income $

53,732

53,709

45,170

41,056

DONOR GRANT RESERVE The movement of donor grant reserve is as follow:

Balance at the beginning of the year Amount (utilised)/received during the year Balance at the end of the year

2012

2011

$ 7,743

10,043

(2,300)

7,743

The donor grant reserve represents funds received from the Secretariat of the Pacific Community for the implementation of the Pacific Regional Strategy Implementation Plan on HIV & AIDS.

DUTY TRAVEL 2012

2011

In country consultations

1,017

Other meetings

10,089

11,106

PACIFIC ISLANDS PRIVATE SECTOR ORGANISATION DISCLAIMER ON UNAUDITED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2012 The additional unaudited supplementary supplementar y information presented on page 18 is compiled by the Board of Pacific Islands Private Sector Organisation. Organisation. Accordingly, we do not express an opinion on such financial information and no warranty of accuracy or reliability is given. We advise that neither the firm nor any member or employee of the firm accepts any responsibility arising in any way whatsoever to any person in respect of such information, including any errors or omissions therein, arising through negligence or otherwise however caused.

Suva, Fiji

PricewaterhouseCoopers Chartered Accountants

PricewaterhouseCoopers, Level 8 Civic Tower, 272 Victoria Parade, Suva, Fiji. GPO Box 200, Suva, Fiji. T: (679)3313955 / 3315199, F: (679) 3300981 / 3300947 PricewaterhouseCoopers is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separ separate legal entity.

DETAILED INCOME STATEMENT

For The Year Ended 31 December 2012

2012

2011

Income Grant revenue

1,434,840

926,344

In-kind contributions â&#x20AC;&#x201C; without cash in-flow

62,757

19,642

Membership fees

45,170

41,056

Registration fees

8,562

2,720

9,933

1,551,329

999,695

Other income

Expenses Advertising Audit fees Reversal of / (Provision for) doubtful debts Debt written off Bank fees and charges Consultancy fees Depreciation Duty travel Business development grants

(1,509)

(8,663)

(4,765)

7,515

13,576

(6,021)

(865)

(480)

(15,881)

(6,335)

(4,660)

(11,106)

(147,841)

(116,147)

(27,142)

(22,585)

Programmes: - NPSO capacity building - Mentoring program

(18,731)

- Sub-regional / regional workshops

(607,924)

(178,287)

- Public/Private sector dialogue

(121,077)

(79,202)

(50,964)

(125,322)

(89,264)

- Industry working group meetings - AGM and business seminar - Private sector mentoring visits

(39,915)

(63,158)

- Training

(6,562)

(8,987)

- Meetings/workshop attendance

(3,409)

(14,736)

(92,693)

(78,121)

(237,986)

(210,584)

(1,424,240)

(955,591)

Office expenses Salaries and wages

Surplus for the year

127,089

44,104

Working with our vision of providing opportunities for the Pacific region to grow and prosper, the theme for the 2012 Annual Report was inspired by the ideas of development, progress and advancement. The font families used on the headers of the report have a rounded and humanistic feel to show our recognition of the human aspect of the work that we do as well as highlight the importance of supporting a culture of inclusion. A more classic and traditional typeface was chosen for the body text to create a sense of professionalism throughout this report. Using existing brand details of the PIPSO tapa design, the elements were re-illustrated to portray the vision, mission and strategic goals of the organisation in a visual manner. The artwork on the pages of this report resemble pathways and networks which signify PIPSOâ&#x20AC;&#x2122;s facilitation of cooperation among its members. They also imply greater connections with partners and stakeholders, as well as indicate the many relationships built on the many roads that are taken on the way to prosperity and growth.

Contact Ph:

(+679) 7736301

Email: bhavinv@pipso.org.fj Postal Address P O Box U30, USP Suva, Fiji Islands Lot 3 Goodenough Street, Lynica House Middle Floor