Phosphate extraction is a major source of funding for Nauru’s economic growth. The majority of the island’s landmass has been used for mineral excavation and preservation. As a response, the country’s GDP increased to an approximated $160 million in recent years. It is attempting to expand its industry. AU$25.8 million in foreign assistance to Nauru’s industry amounts to another significant source of finance for the country’s market.
The opening of the Australian National Assessment Facility for refugees in 2012 encouraged commercial expansion. Because of this, Nauru has a job growth rate and greater mean domestic earnings.
Business and investment opportunities
The main contributor to international direct capital in Nauru is Australia. Australia has contributed an average of $24.6 million annually to Nauru’s GDP during the past four years. The Nauruan legislature places a high preference on exploring areas outside of the Coral sea and locating diverse streams of FDI.
Throughout 2020, the Asian Development Fund invested a sum of US$131.57 million. The creation of significant ventures in the transportation and power industries has also been effective. The richness of fish in Nauruan wetlands has not yet been fully exploited. If money were invested in this sector, it might become a hub for traveling overseas fishermen and gaining access to fisheries accords with other Commonwealth nations.
Since the majority of Nauru’s labor is employed in the phosphate extraction industry, fostering the growth of other industries through learning and coaching would assist in broadening the economic system. Below is further information about these natural resources’ economic potential.
Fisheries
The profits the island receives from its fisheries were tried to be evaluated in the latest studies by experts. The research provided the statistics that were available regarding how fishing and aquaculture contributed to the economy, trade, tax revenues, and jobs. Official figures revealed that fish farming is accountable for 10.2 % of the national revenue. 97% of the surveyed local families were discovered to be fishing-related. As a result, aquaculture has a major impact on the industry, economic output, and Development.
The state of the Nauruan industry and any growth in seafood prices are elements that will affect the consumption of fisheries in the coming years. The fishing business will also be impacted by the overfishing of coastal regions, rising fuel prices, and shifts in the national population.
The authorities have several plans to enhance the availability of fish in the country. These entail boosting canoe construction, fish selling, and fish farming. In an attempt to reduce overfishing, there are also initiatives to support community-based administration of fisheries supplies.
Import-export industry
The GDP of Nauru was estimated to be US$111 million in 2020, growing by 12.4% annually. Fishes, crabs, mollusks, and other underwater creatures accounted for 80% of all sales, at a sum of US$110 million. Thailand, the Philippines, the US, and South Korea were the primary trade markets. The island’s primary exports are hardware, soil and mineral products, electronic goods, sodium, and sulfur.
In 2020, imports totaled USD 112 million. Natural oils, petroleum distillates, electronics, industrial devices, nuclear plants, furnaces, and non-railroad automobiles were the most popular goods purchased. Taiwan, Australia, Japan, and China were the top four import source nations.
Renewable energy
Nauru presently depends largely on expensive, dirty petroleum diesel supplies, but it wants to switch to sustainable energy alternatives including sun, turbine, and other options. By 2030, the authorities reportedly pledge to increase fuel productivity by 30% and electrify 20% of their fleet of vehicles. To accomplish these objectives, however, it needs global economic assistance.
By 2030, regular reports will be provided on these voluntary power pledges, which will also be made open and recorded on an electronic website. At the High-level Discussion, it is anticipated that many additional power compacts would be revealed.
