VT2.5 billion EU programme to back climate-smart agriculture

June 25, 2025 10:19 pm | Posted in Business News | Share now TwitterFacebook

By Ezra Toara.

The Government of Vanuatu and the European Union (EU) have officially launched the Vanuatu Sustainable and Inclusive Rural Development Programme (VaVaC II), a major initiative worth EUR 18.8 million (VT2.5 billion) to support the country’s agricultural sector and agrifood businesses.

VaVaC II consists of two main components: EUR 16 million (VT2.1 billion) in budget support and EUR 2.7 million (VT0.3 billion) for technical assistance. The six-year programme will promote climate-resilient rural development through improved agricultural research, advisory services, and traditional food systems such as agroforestry and intercropping—methods suited to harsh weather conditions.

Acting Prime Minister (PM) and Minister of Finance and Economic Management, Johnny Koanapo Rasou, welcomed the EU’s support, calling it “very timely,” particularly following the December 2024 earthquake.

He said the presence of EU officials in-country has made a real difference in helping to revitalise the economy. “On behalf of the government, I thank the EU for its ongoing support,” Koanapo said.

The Acting PM also acknowledged the work of field teams and called for continued high-level visits and collaboration with government departments.

Speaking on behalf of the EU, Maurizio Cian, Head of Cooperation to the Pacific, said the programme builds on the EU’s long-term partnership with Vanuatu.

“Agriculture is a key part of the economy. Through VaVaC II, we are supporting national agricultural policy, private sector development, and a stronger rural economy. Together, we can build a more sustainable future,” he said.