Business Advantage Pacific Islands 2010/11

Page 59

Country Profiles

Kiribati is a group of 33 islands (23 inhabited) in the central Pacific that straddles the Equator. The islands lie about halfway between Hawai’i and Australia. The three island groups of Kiribati are spread over a 3.5 million sq km Exclusive Economic Zone (EEZ), which is equivalent to the landmass of New York City spread out across the width of continental US. The independent republic has a history of sound fiscal management but faces the kinds of challenges typical of Small Island Developing States. Kiribati’s isolation and geographical fragmentation make transport and communications costly. This poses substantial difficulties for remote communities on the outer islands who make up over 50% of the total population. Climate change is another challenge for the low-lying nation. The main sources of revenue are the Revenue Equalization Reserve Fund (RERF), established in 1956 by the British

CREDIT: SWIRE SHIPPING

Kiribati

administration and financed by phosphate mine royalties; foreign aid totalling 25% of the GDP; licence fees for foreign fishing in Kiribati’s EEZ; and remittances of seafarers on overseas ships. Anote Tong was returned for a second term as President of Kiribati following elections in October 2007. The Government’s National Development Strategy focuses on six key policy areas: partnership of public and private

Population:

108,000 (2009)

Capital:

Tarawa

Surface Area:

811 sq km, EEZ 3.5 million sq km

investment in infrastructure and production; equitable distribution of services and economic opportunity; improving public sector performance; equipping people to manage social and economic change; sustainable use of natural resources and physical assets; and preserving financial reserves (the RERF) while using them to finance development. The country has large marine grounds abundant in both seafood and mineral resources and tourism is another potential area of opportunity.

Contact Kiribati Ministry of Commerce, Industry & Cooperatives Foreign Investment Promotion Division PO Box 510, Betio, Tarawa Kiribati Tel: +686 26 157/158 Fax: +686 26 233 Email: btofinga@mcic.gov.ki

Data compiled with the assistance of Pacific Islands Trade & Invest (Sydney).

People: Micronesian 98.8%, other 1.2% Time Zones: GMT +12 hrs, Tarawa GMT +11 hrs, Kiritimati GMT +14 hrs Rawaki, Phoenix Islands GMT +13 hrs Language: English/Gilbertese Political Status:

Independent republic

Nominal GDP: US$114 million (2009) INFLATION:

9.1% (2009)

Currency: Australian dollar Major industrial sectors:

Fisheries, agriculture, remittances, copra

Exports:

Fish, copra, coconut oil, seaweed

Major export markets: USA, Belgium, Japan, Australia, Bangladesh Imports: Food and live animals, machines, transport equipment, manufactured goods, mineral fuels, beverages and tobacco Major import markets: Australia, Fiji, Japan, New Zealand, Taiwan WORLD BANK EASE OF DOING BUSINESS RANKING 2010:

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