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: 

  • Increase access to finance through the implementation of a secured transactions framework, and providing assistance to lenders to enhance the framework’s uptake;

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

  • Simplify and modernize business and investment laws, and streamline business registration processes through electronic registry implementation;

  • Improve the performance of state-owned enterprises through reform, PPPs, and transparent performance information;

  • Assess public-private partnership and privatization opportunities;

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

  • Analyse and work to remove constraints to women’s full economic participation, through Women’s Business Leadership pilot projects and incorporating a gender perspective into reform activities; and

  • Support reforms through advocacy and analytical work.

Resources and Spending

Since 2007, Tonga has received $4.7 million in PSDI assistance. 28% of this overall figure has been allocated to business law reform initiatives, which have included development of the Pacific’s first multiple-entity registry and numerous legislative reforms. A broad state-owned enterprise (SOE) reform and public-private partnerships program has also received 28% of total funding. Financing Growth initiatives have received 20% of the overall figure, including the development of a secured transactions framework and associated work to increase the provision of loans secured against movable assets. 

Tonga2007 2019 web2

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

For detailed information on PSDI activities in Tonga, download the April 2020 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.

80% faster business registrations

Following the implementation of an online business registry, the average time needed to register a business fell from 5 days, to just 1 day.

29% increase in new business registrations

per year, following the implementation of an electronic registry in 2014.

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.

9,500 securities registered

As of end-2019, more than 9,500 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

being built on Tongatapu using commercial finance through a PSDI-supported PPP.
Latest News
24 September 2021
Pacific women getting into more leadership positions

NUKU'ALOFA TIMES, TONGA: Tonga is amongst the pace setters according to a new report from the Pacific Private Sector Development Initiative..

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10 February 2021
Tender forum held in Nuku’alofa for prospective bidders for Ports Authority of Tonga stevedoring concession contract

PSDI supported a tender forum for prospective bidders for a Ports Authority of Tonga (PAT) stevedoring contract, held at the PAT headquarters in Nuku’alofa on 8 February.

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22 March 2019
Tonga to build South Pacific's largest solar plant under PSDI supported PPP

A PSDI-supported public-private partnership signed in Nuku’alofa yesterday will see the largest solar plant in the south Pacific built in Tonga.

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21 March 2019
South Pacific's Biggest Solar Plant to Help Tonga Meet Renewable Energy Target

NUKU’ALOFA, TONGA (21 March 2019) — The largest solar plant in the south Pacific will be built in Tonga through the country’s second commercially financed public-private partnership (PPP) after an agreement was signed in Nuku’alofa today.

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19 May 2017
Tonga Becomes First Pacific Country to Publish Detailed SOE Performance Results Online

With PSDI support, Tonga's Ministry of Public Enterprises' website has been updated to provide key information about Tonga’s state-owned enterprises (SOEs)--a first for the Pacific.

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23 April 2016
Empowering Tonga’s Next Generation of Female Business Leaders

The leadership workshops attracted participants from major Tongan businesses and government departments. The Women’s Business Leadership Program took place in Nuku’alofa, Tonga, over three, two-day sessions that aimed to provide attendees with the skills, knowledge, mentoring, and networking opportunities they require to advance their careers. All attendees selected to take part in the workshops currently work in mid-level roles in the public or private sectors. The workshops covered a range of topics,...

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Key Publications
PSDI Infographic Brochure 2022
PSDI Infographic Brochure 2022
This infographic brochure illustrates PSDI’s overall work and key achievements.
State-Owned Enterprises: Board Nomination Practices in the Pacific
State-Owned Enterprises: Board Nomination Practices in the P...
This policy brief challenges policymakers to consider a transparent and objective board nomination process as critical to an SOE’s prospects of achieving its commercial and operational goals.
Economic Empowerment of Women 2022
Economic Empowerment of Women 2022
This infographic brochure illustrates PSDI’s work and key achievements in its Economic Empowerment of Women focus area.
Tonga | Pacific Tourism Sector Snapshot
Tonga | Pacific Tourism Sector Snapshot
This tourism sector snapshot for Tonga provides an overview of the tourism sector before the COVID-19 pandemic and identifies new and existing challenges and opportunities for the tourism industry.
Looking Forward Vol. 1: Evaluating the Challenges for Pacific Tourism after COVID-19
Looking Forward Vol. 1: Evaluating the Challenges for Pacifi...
This PSDI tourism sector assessment provides an overview of Pacific tourism before the COVID-19 pandemic, identifies challenges, and provides recommendations for a sustainable post-pandemic recovery.
Leadership Matters: Benchmarking Women's Business Leadership in the Pacific
Leadership Matters: Benchmarking Women's Business Leadership...
Leadership Matters: Benchmarking Women in Business Leadership in the Pacific collects and analyzes data on women’s representation on boards and in senior management in the 14 Pacific developing member countries of the Asian Development Bank.