Vanuatu’s share of VT1.5B Pacific business initiative yet to be decided

October 13, 2026 10:36 pm | Posted in Business News | Share now TwitterFacebook

By Nicholas Mwai.

Vanuatu’s share of a new VT1.52 billion Pacific business development initiative has yet to be determined, although the country will continue receiving technical assistance under its fifth phase, which began this month.

The Asian Development Bank (ADB) and the Australian Government have committed US$12.85 million (approximately VT1.52 billion) to Phase V of the Pacific Private Sector Development Initiative (PSDI), running from October 1, 2026, to June 2031.

In a response to the Vanuatu Daily Post, ADB confirmed that Vanuatu is among 14 Pacific countries covered by the new phase. The country has received PSDI support throughout the initiative’s four previous phases since 2007, totalling approximately US$4.1 million (VT484 million) in technical assistance.

The regional budget has not been divided among participating countries in advance. The level of assistance Vanuatu receives will depend on government requests and priorities identified through an individual country strategy.

ADB plans to prepare Vanuatu’s strategy early in Phase V, in consultation with the Government, development partners and the private sector.

One area already receiving assistance is anti-money laundering and combating the financing of terrorism (AML/CFT). PSDI has supported Vanuatu for about two years in preparing for its mutual evaluation scheduled for November 2026.

The new phase will also target better access to finance for small businesses, simpler business laws and regulations, stronger competition and consumer protection, and improved commercial performance of state-owned enterprises.

ADB says the measures aim to make it easier for businesses to secure finance and reduce operating costs.

The initiative will support stronger secured transactions frameworks for small business lending, work with lenders to improve lending policies, and explore financial products such as value chain financing and technology-enabled financial services.

Secured transactions frameworks allow businesses to use movable assets as collateral for loans, rather than relying solely on land.

Previous PSDI assistance in Vanuatu included support for the country’s Personal Property Securities framework and electronic registry, launched in 2009. By October 2023, more than 10,722 security interests had been registered through the system.

The initiative also supported the online registry for companies, business names and charitable associations, launched in 2015 in partnership with the Vanuatu Financial Services Commission.

The online system reduced the average time needed to register companies and other business entities from more than three weeks to less than three days.

During Phase V, PSDI will continue assisting with improvements to business registration, digital government systems and legal frameworks to simplify regulatory compliance. The specific activities in Vanuatu will depend on the priorities agreed through the country strategy and the Government’s requests for assistance.

Women entrepreneurs are another focus of the new phase. Planned work includes removing legal barriers affecting women in business, developing financial products that prioritise women-owned enterprises, strengthening women’s business leadership and improving data on women’s business ownership.

This builds on PSDI research involving 166 women business owners across six provinces in Vanuatu, examining barriers to doing business and opportunities for reform.

The initiative has also examined challenges facing women in tourism-related businesses. Its research found that cyclones and other disasters were among the five leading challenges for women operating tourism businesses.

Under Phase V, PSDI will incorporate climate and disaster risks into business, investment and competition laws, while supporting financing that can help small businesses protect their assets against disasters. The programme will also consider how climate-related shocks affect women and women-owned businesses.

The new phase will be financed through US$3 million (approximately VT354 million) from ADB’s Technical Assistance Special Fund and US$9.85 million (approximately VT1.16 billion) in cofinancing from the Australian Government.

PSDI will continue working with Pacific governments to strengthen private sector development and create a more supportive environment for investment, business growth and economic participation.