Vanuatu

Vanuatu’s economy is stabilizing after the devastation of Tropical Cyclone Pam and political instability that resulted in a change of government in early 2016. However, key constraints limit economic growth, including remoteness, small market size, underdeveloped institutions, and limited absorptive capacity. 

PSDI is working with the Government of Vanuatu to address these constraints and create an enabling and inclusive environment for business.

In Vanuatu, PSDI is supporting reforms that create an enabling and inclusive environment for business.

PSDI is working with the Government of Vanuatu to:

• Increase access to finance through the implementation of a secured transactions framework, and by working with the Reserve Bank of Vanuatu to develop nationally-appropriate financial sector reforms;

• Strengthen financial institutions, through increased capacity, improved governance, and appropriate regulations;

• Simplify and modernize business laws, and streamline business registration processes through the implementation of an online companies, business names, and charitable associations registry;

• Assist Vanuatu to meet the changes required for the anti-money laundering/combatting the financing of terrorism (AML/CTF) framework;

• Strengthen state-owned enterprise policies and governance, and assess opportunities for public-private partnerships;

• Support strong competition and consumer protection legislation and policy development;

• Analyse and work to remove constraints to women’s full economic participation; and

• Support reforms through advocacy and analytical work.

Resources and Spending

The greatest proportion of PSDI’s spending in Vanuatu is on business law reform, which accounts for 33% of the $3.2 million in PSDI assistance the country has received. This proportion includes the the comprehensive reform of Vanuatu's foundational business laws, culminating in the creation of a multiple entity business registry, which was launched in August 2015.

Financing growth initiatives have received 23% of total funding, used to strengthen the institutional capacity of the Vanuatu Financial Services Commission, support the creation of a secured transactions framework, and pursue microfinance related activities. State owned enterprise (SOE) reform has received 21% of overall funding, including the preparation of an SOE policy and act and ongoing support moved to identifying SOE reform priorities and providing training for SOE directors. 

On this website, $ refers to US dollars unless otherwise stated.

For detailed information on PSDI activities in Vanuatu, download the 2022 PSDI Country Overview here.