Establishing a business in Bougainville is a difficult challenge. But Robert Critchley, owner of cocoa and copra supplier, Sankamap Exports, describes how it can be done.
Sunkamap’s Robert Critchley. Source: BAI
Sankamap Exports was started in the Autonomous Region of Bougainville in 2011. It exports copra and cocoa, and is described as the leading cocoa buyer on Buka Island.
Founder Robert Critchley, who has a mother from Bougainville and an Australian father, says one of the keys to its success was establishing the right local business relationships.
‘I built a good network to help facilitate what would assist me in properly establishing my business in its initial stages.
‘One of the most influential and important factors was securing a market and connecting to international investors.
‘Having a Bougainville mother also no doubt helped secure this market share.’
Critchley says he was able to attract seed capital from an investor.
‘This allowed me to be more competitive against the existing buyers in Bougainville.
‘Having a Bougainville mother also no doubt helped secure this market share.’
Exports
Critchley says the company exports on average 1500 to 2000 tonnes of dry copra a month. It also exports 30 to 60 tonnes of dry cocoa.
‘We spend an average of K2000 per day on cocoa and copra purchased from the farmers.
‘Bougainville has one of the highest cost of goods in PNG.’
‘My company also employs over 100 employees, our workers.’
Diversification
Critchley says the company has diversified into other business activities, including property construction.
It has also moved into shipping. Critchley says getting ships to come to Bougainville is problematic, and it is also difficult to get shipping insurance.
He hopes that his shipping service will result in ‘more competitive freight rates’ into Bougainville.
‘Hopefully, with lower freight rates, it also lowers the cost of goods into Bougainville.
‘Bougainville has one of the highest cost of goods in PNG.’
‘I am also looking at opportunities in other export markets.’
Critchley’s favourite business move is ‘owning a bar’—and enjoying a drink after work.
Adding value
Critchley is looking to add value to the cocoa and copra exports through downstream processing.
‘I am also looking at opportunities in other export markets. Fisheries, logging and hopefully I will get into importing as well.’
Critchley says he is also hoping to increase the numbers of supplying farmers and improve the service that he provides to them.
‘Eventually participants began to see the value in working together in influencing policies and networking.’
‘This customer supply and orientation is key to business in Bougainville. Businesses are being built and there are opportunities for investors.’
Buka Association
Critchley is President of the Buka Business Association, which was established in 2017. He says the association is recognised by the Autonomous Region of Bougainville government as the voice of the private sector in the island.
‘We know that the private sector needs a voice. The association exists to represent members’ views to the government to build trade and investment, networks, and to help business people to be compliant.’
Critchley acknowledges that forming the association has not been ‘entirely straightforward’.
But, eventually, participants began to see the value in working together to influence policies and network. There are now 40 members.
He says he is developing relationships with other business associations, both inside and outside PNG, to strengthen trade and investment.
‘We are looking to learn from other associations. We also want to have all associations collaborate in establishing a Bougainville Business Association. Bougainville has come a long way and admittedly we have a long way to go if we are to increase the level of private investment.
‘But I believe Bougainville has a bright future.’
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Mr. Critchley I applaud you in your achievements in such a short time you had established yourself back in your motherland. I think we should now be looking at downstream processing instead of just selling our primary produce on commodity export markets at only a fraction of a cost of what we would fetch, if we were to sell them processed as value-added finished products. Price fluctuations also tend to create problems for exporters of primary products not only by prolonged low prices but it also makes it hard for a country to plan it’s economy properly.
Where there are challenges there is a lucrative business opportunity. Most Investors miss that. Robert Cristley is embodiment of Innovation, grit and determination. Bougainville is a post Conflict island, just imagine the various challenges and risk that are just waiting to happen. My hats out to you Bro, I am proud of you and cant wait to do business with you.
This is what Papua New Guineas should be doing simply tapping into Agriculture which was and it’s still the backbone of our economy. Not just to make profit but largely bring services to our people back in the village in very remote areas. We have a society which relies more on our local cash crops to earn income in both a win or win situation for the local and the investor.
Good on you Mr Critchley!!