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LAND AREA: 21.1 SQ. KM. BACKGROUND The Republic of Nauru is one of only two single island nations in the South Pacific. It is located 41 kms. south of the equator and has a land area of only 21 sq. kms., although its Exclusive Economic Zone (EEZ) covers 310,000 sq. kms. The Nauruan Government comprises 18 elected members headed by a president who is both head of state and de facto prime minister. Nauru's rich phosphate deposits have made it the wealthiest nation in the South Pacific with a per capita GNP of US$4,640. The local labor force is insufficient to meet the phosphate mining needs and the Nauru Phosphate Commission imports contract workers from areas such as the Philippines, Hong Kong, Kiribati, Tuvalu and other Pacific Islands. INVESTMENT CLIMATE Government Policy Nauru has never had a specific foreign investment policy, mainly as a result of its economic situation and because of the limited space available for development. The Government, therefore, has never actively encouraged foreign investment and offers no incentives as such for investors. It does, however, operate a financial center which allows international companies to register there for tax planning purposes. Laws and regulations have been designed to promote the further development of this center. Nauru is a beneficiary of the South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA) which gives its products preferential access to Australian and New Zealand markets. It is not, however, partner to the Generalised System of Preferences (GSP) and the Lomé Conventions which benefit the trading agreements of many other Pacific nations. Banking Banking is handled by the Bank of Nauru which is wholly owned and operated by the Government. By special arrangement, Nauru has remained within the Australian monetary system and the currency is the Australian dollar. Trade Nauru's sole export is high quality phosphate. The estimated value of exports over the period 1989-93 was US$95 million. The trade balance is heavily weighted in Nauru's favor even though virtually every commodity is imported. Main suppliers of imports are Australia and New Zealand. There are no import duties except on tobacco products and alcoholic beverages. Primary Production Primary production is confined to fruit and vegetables for domestic consumption although the country is nowhere near self-sufficient and commercial fishing does not exist on any scale. Tourism Nauru has not developed as a tourist destination; most arrivals are in transit on Air Nauru flights or returning expatriate workers. Taxation The Nauru Government does not impose any taxes except for an Airport Departure Tax imposed on foreigners passing through Nauru. PROMOTION OF INVESTMENT OPPORTUNITIES There are no official promotion documents other than an entry in the:
Contact for Further Information: Secretary
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