VNPF declares 2.5% interest rate for members
September 22, 2025 9:40 pm | Posted in Business News | Share now TwitterFacebook
By Anita Roberts.
The Vanuatu National Provident Fund (VNPF) will be paying an interest of 2.5% for the 2024 financial year with VT583 million to be credited to its members, an increase of VT127 million compared to 2023.
To calculate their portions, members should multiply their 2024 total savings by the interest rate of 2.5%. The funds were expected to be paid into the accounts of all members by yesterday (Monday) afternoon.
VNPF has gradually raised its interest rates from 1.2% in 2019 to 1.3% in 2020, followed by 1.4% in 2021, 1.5% in 2022, 2% in 2023 and 2.5% for last year. The rates depend on the financial performance of the Fund.
The Deputy Prime Minister (DPM) and Minister of Finance, Johnny Koanapo, announced the 2.5% interest rate yesterday following the completion on the financial audit on the 2024 financial year.
VNPF achieved a commendable net profit of VT1.04 billion despite the financial year 2024 being marked by significant challenges, including the catastrophe earthquake of December 17th, which disrupted operations in Port Vila and financial earnings for numerous organisations, said Minister Koanapo.
“From this surplus, we (VNPF) successfully increased the balance of the General Reserve Account from VT803 million in 2023 to VT1.6 billion in 2024,” he said.
“This impressive growth underscores the strength and resilience of VNPF, a true testament to the effective governance leadership of the board and management.”
The DPM attributed the achievement to the dedication and hard work of the General Manager, staff and management of the Fund including the support from the board.
He also thanked all employers who have faithfully contributed to their employees’ contribution fees, including voluntarily contributors.
DPM Koanapo also launched the revised Investment Guidelines for VNPF and its 5-year Strategic Plan yesterday.
Since 2006, the Fund has adhered to an investment policy that is now 19 years old and has become outdated.
“The previous Investment Guidelines did not adequately provide the necessary support and framework for VNPF to diversity its investments prudently, both in local and international markets. This launch marks a transformative step towards enhancing VNPF’s investment strategies and ensuring the Fund’s future sustainability. It represents a commitment to enhanced governance, improved risk management, and alignment with the Fund’s long-term investment objectives as well as its statutory requirements,” said the minister.
He commended the Asian Development Bank for its technical assistance and the Reserve Bank of Vanuatu for its contributions.
VNPF’s Strategic Plan for 2025 to 2029 builds upon the previous plan and serves as an overarching roadmap for achieving the Fund’s goals and objectives. It emphasizes priorities such as governance, growth, development, investment, quality control and adaptability within the Fund.
The previous strategic plan, which spanned from 2021 to 2024, laid a strong foundation for the Fund’s continued growth in the next five years.
