RBV pays record VT700M dividend to Government

July 2, 2025 10:09 pm | Posted in Business News | Share now TwitterFacebook

By Ezra Toara and Hilaire Bule.

The Reserve Bank of Vanuatu (RBV) is currently hosting its third Economic Symposium from 2–3 July 2025 at Unity Park in Luganville, Santo, with a major moment marking the event — the official handover of a record-breaking VT700 million dividend from the central bank to the national government.

This is the largest-ever dividend issued by the RBV, more than double last year’s VT300 million transfer, which was based on the bank’s 2023 financial operations. Deputy Prime Minister (DPM) and Minister of Finance Johnny Koanapo, as the minister responsible for the RBV, noted that the government had originally budgeted for just VT300 million in dividends, making the final amount a welcome and unexpected addition to national revenue.

In total, the RBV declared a dividend of VT800 million for the year. From this amount, VT100 million has been allocated to the National University of Vanuatu (NUV) and the Vanuatu Agricultural Research and Technical Centre (VARTC) to support national efforts in education and agricultural research.

Prime Minister (PM) Jotham Napat, speaking at the event, commended the RBV Board and Governor August Letlet for what he described as strong financial management. He added that the government remains optimistic about improved economic outcomes as it works to strengthen conditions for national growth.

The two-day symposium is being held under the theme “An Enabling Environment for Digital & Green Finance for Inclusive Growth and Resilience.” It brings together key players from government, the financial sector, development partners, and local communities to explore strategies for modernising Vanuatu’s economy while ensuring that development remains fair and environmentally conscious.

Among key announcements at the event were the launches of the National Financial Inclusion Strategy 2025–2030, RBV’s Strategic Plan 2025–2030, the National Regulatory Sandbox Guidelines, the Financial Consumer Protection Policy and Guidelines, and the Mobile Money Operating Guidelines.

In his address, PM Napat spoke about the role of financial inclusion in development and welcomed the Reserve Bank’s leadership in this space. He cited findings from the 2024 Demand-Side Survey conducted by the RBV and its partners, which showed that formal financial inclusion — defined as adults with access to a bank account — rose from 47 percent in 2016 to 56 percent in 2024.

However, he noted that financial exclusion also rose, from 32 percent to 43 percent, while reliance on informal financial systems declined.

“These findings must guide future policy to bring those who remain excluded into the formal financial system,” he said.

He also noted that the RBV’s new Financial Inclusion Strategy aligns with the National Sustainable Development Plan and acknowledged the support of the United Nations Capital Development Fund (UNCDF), the Australian Government (DFAT), the New Zealand Government (MFAT), and the European Commission. He gave special thanks to the Asian Development Bank for supporting the development of the Financial Consumer Protection Policy.

The PM urged the RBV to maintain strong collaboration with government ministries, financial institutions, and development partners to improve access across all sectors. He welcomed RBV’s formal partnerships through Memoranda of Understanding with the Ministry of Trade, Ministry of Education and Training, and the Ministry of Agriculture, Livestock, Forestry, and Biosecurity.

PM Napat also encouraged financial institutions to develop gender-responsive products and policies that support women’s financial empowerment, along with inclusive initiatives aimed at youth, persons with disabilities, and the elderly.

“Particular attention must be given to rural areas and the agriculture sector, which remain the least banked despite being the backbone of our people’s livelihoods,” he said.

DPM Koanapo said the payment reflects the RBV’s strong financial results and its commitment to good governance—key factors for maintaining macroeconomic and financial stability that support Vanuatu’s sustainable economic growth.

“The dividend will help the Government improve essential social services, public infrastructure, climate resilience projects, and ongoing fiscal operations,” Mr. Koanapo said.

“As Governor Letlet mentioned earlier, the RBV’s net profit for 2024 was the highest ever recorded. On behalf of the government, I congratulate the Governor, the Board, and staff for this outstanding achievement. This dividend is more than a financial transaction; it represents a partnership and strong collaboration that must continue to support a stronger, more inclusive, and resilient Vanuatu,” he added.

Mr. Koanapo described the Economic Symposium as a platform for fresh ideas, knowledge sharing, and cooperation.

“In a rapidly changing world, we must come together to explore ways to build an environment that supports inclusivity, resilience, and sustainable development,” he said. “I look forward to the discussions and outcomes from this event. Digital and green finance are transformative tools. 

“Digital finance — including mobile money, online banking, and digital currencies — improves access to financial services, especially for people in remote and underserved areas across Vanuatu and the Pacific. Green finance, such as investments in renewable energy and climate-friendly projects, helps protect the environment and reduce climate risks. For a country like Vanuatu, which faces climate change impacts and economic challenges, these tools are essential to support development, protect our environment, and strengthen the economy.”

DPM Koanapo also mentioned the government’s commitment to creating policies and regulations that encourage innovation while protecting the public interest.

“We are focused on strengthening digital infrastructure, promoting financial literacy, and backing green investments that improve livelihoods, especially in rural and outer island communities. This symposium offers a timely opportunity to share experiences, learn from global best practices, and build stronger regional and international partnerships. Let us ensure that these discussions lead to real results that support our shared goal of a resilient, inclusive, and climate-smart economy,” Minister Koanapo concluded.

The RBV Economic Symposium continues today with further presentations and stakeholder discussions focused on shaping the future of inclusive, digital, and sustainable finance in Vanuatu.