Tonga

PSDI is supporting reforms that address private-sector challenges and help the Tongan economy fulfill its long-term growth potential.

PSDI is working with the Government of Tonga to: 

  • Strengthen the governance and operations of Tonga’s public- and private-sector retirement funds.

  • Simplify and modernize business and investment laws, including foreign investment laws, and streamline business registration processes. 

  • Improve the performance of state-owned enterprises (SOEs) and assess public-private partnership (PPP) and privatization opportunities. 

  • Support strong competition and consumer protection legislation and policy development, including the establishment of a multi-sector regulator. 

  • Analyze and work to remove constraints to women’s full economic participation.

  • Support resilience in the tourism sector.

  • Support reforms through advocacy and analytical work.

For detailed information on PSDI activities in Tonga, download the 2024 PSDI Country Overview here.

Tonga at a glance

Simplified and modernized business laws

PSDI assisted the Government of Tonga in preparing the Companies (Amendment) Act, which streamlines the Companies Act 1995 and provides for an electronic registry.

Secured transactions framework

PSDI supported the creation of Tonga’s secured transactions framework with the Personal Property Securities Bill in 2010, and online registry development in 2011.

12,500 securities registered

As of mid-2024, more than 12,500 security interests over movable assets to be used as collateral for loans have been registered in Tonga using the PSDI-supported secured transactions framework.

South Pacific's largest solar plant

built on Tongatapu using commercial finance through a PSDI-supported PPP.

Ports public-private partnership.

PSDI supported the Ports Authority of Tonga to enhance port operations and increase private sector participation through a public-private partnership.

Supporting women business owners

PSDI is supporting the Ministry of Trade and Economic Development with initiatives to understand and support women business owners, particularly those operating in the informal sector.

Supporting gender mainstreaming in tourism

PSDI is working with the Pacific Tourism Organisation (SPTO) and national tourism organizations (NTOs), including the Ministry of Tourism in Tonga, to support improved mainstreaming of women’s economic empowerment in the tourism sector.
Latest News
8 April 2025
Delivering a suite of reforms to foster a stronger, fairer private sector in Tonga

PSDI is supporting Tonga to improve competition and consumer protection, facilitate foreign investment, and simplify business registration processes.

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27 February 2025
PSDI discusses women’s role in the private sector at the Tonga National Business Conference

PSDI attended the Tonga National Business Conference last week to present and discuss research findings on women’s role in Tonga's private sector.

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21 February 2025
Upgraded Registry Makes Doing Business Simpler, Faster, and Less Expensive in Tonga—ADB

Tonga now has an upgraded online business, foreign investment, and personal property securities registry, developed by the Ministry of Trade and Economic Development, with the support of the Asian Development Bank's Pacific Private Sector Development Initiative.

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4 November 2024
PSDI Supports Consultations to Strengthen Consumer Protection in Tonga

PSDI and MTED held consultations in Vava'u, Tonga in September 2024 to discuss strengthening Tonga's consumer protection framework.

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1 October 2024
PSDI presents on renewable energy transition at Pacific Power Association Conference

Renewable energy can bring cost savings for Pacific utilities, but achieving these benefits requires strategic planning, careful integration of storage systems, and appropriate regulatory frameworks, according to PSDI SOE/PPP Expert, Laure Darcy, speaking at the Pacific Power Association Conference.

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23 September 2024
Increased private sector involvement is bringing enhanced efficiencies to Tonga’s ports

PSDI has been working with the Ports Authority of Tonga since 2018 to improve port operations and increase private sector participation, culminating in a public– private partnership that is making the port’s cargo handling more transparent and efficient.

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Key Publications
PSDI Annual Report FY2024
PSDI Annual Report FY2024
This annual report outlines how the Pacific Private Sector Development Initiative supported the enabling environment for business and helped foster inclusive private sector-led economic growth in the Pacific during FY2024 (1 July 2023 - 30 June 2024).
PSDI Country Overviews 2024-2025
PSDI Country Overviews 2024-2025
These fact sheets provide an overview of PSDI activities in each country to 2025.

PSDI Annual Report FY2023
PSDI Annual Report FY2023
This report gives an overview of PSDI activities from 1 July 2022 to 30 June 2023.
Leadership Matters 2024: Benchmarking Women in Business Leadership in the Pacific
Leadership Matters 2024: Benchmarking Women in Business Lead...
This is the second edition of the Leadership Matters series, which collects and analyzes data on women’s representation on boards and in senior management in 14 Pacific countries.
Unlocking Potential: A Gender Inclusive Private Sector Framework for the Pacific Report and Country Assessments
Unlocking Potential: A Gender Inclusive Private Sector Frame...
The Gender Inclusive Private Sector Framework serves as a practical checklist for Pacific governments and institutions to measure progress and identify areas where further improvements are needed.
Innovative Financing Mechanisms in the Pacific
Innovative Financing Mechanisms in the Pacific
This paper examines the potential benefits and issues to consider around implementing Innovative Financing Mechanisms in the Pacific, which can lower barriers and provide more options for businesses seeking finance.