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.
Vanuatu at a glance
Simplified and modernized business laws
Faster business registrations
35% increase in new company registrations
Secured transactions framework
8,000 securities registered
Vanuatu now has a Competition and Consumer Protection Policy. The Council of Ministers recently passed the PSDI-drafted policy, which articulates the government’s goals for developing competitive markets and empowering consumers.
Since 2015, PSDI has been assisting the Government of Vanuatu to develop a new competition and consumer policy. In August and September, consultations were held to discuss the PSDI-drafted Public Issues Paper on Competition Policy and Law for Vanuatu. In October, the draft National Competition Policy was presented by PSDI at a public workshop hosted by the Ministry of Tourism, Trade, Commerce and Ni-Vanuatu Business. The draft policy aims to chart a...
Acting Director General of the Ministry of Tourism, Trade, Commerce and Ni-Vanuatu Business George Borugu (standing, right) opens the public workshop in Port Vila on 12 October. A consultation draft of Vanuatu’s National Competition Policy prepared by PSDI was presented at a public workshop hosted by the Ministry of Tourism, Trade, Commerce and Ni-Vanuatu Business on 12 October. George Borugu, Acting Director General of the Ministry of Tourism, Trade, Commerce and Ni-Vanuatu Business, opened...
Participants at the business registry information session in Lakatoro, Malampa province, on 22 June with PSDI Business Law Reform Expert Aaron Levine (centre). The benefits of Vanuatu’s new online business registry and modernized, simplified business laws have been highlighted in a country-wide awareness-raising campaign by PSDI in partnership with the Vanuatu Financial Services Commission. From August 2015 to June 2016, presentations on how to use the system were delivered to provincial leaders and...
Ms. Serah Obed, Acting Commissioner, Vanuatu Financial Services Commission (left) and Ms. Nancy Wells, ADB's Development Coordinator in Vanuatu, share a handshake in Port Vila yesterday at the signing of an MOU committing their organisations to work together to build what will be the Pacific's "most comprehensive suite of electronic business registries". After working together to achieve business law reform, PSDI and Vanuatu’s financial services regulator have agreed to build online business registries that will lower costs, boost transparency,...