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: 

  • 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 2022 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
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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24 July 2024
Cost Savings Will Grow as Renewable Energy Investment Increases—PSDI

Pacific island countries have ambitious targets to increase their investments in renewable energy, which will reduce electricity generation costs and improve supply reliability, according to a new policy paper published today by the Pacific Private Sector Development Initiative.

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25 October 2023
PSDI presents Gender Inclusive Private Sector Enabling Environment Framework assessment in Tonga

A large group of representatives, including government, business owners, and development partners gathered in Nuku’alofa, Tonga last week for the Tonga National Business Conference where PSDI presented the gender-inclusive private sector enabling environment framework assessment for Tonga.

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16 March 2023
Tonga's SOE framework among Pacific's best, but reforms should continue—ADB PSDI report

Tonga has one of the strongest SOE governance and monitoring frameworks in the Pacific, but its government should continue to seek out new commercialization opportunities, a new ADB PSDI report says.

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8 March 2023
PSDI supports Pacific digital gender gap study in PNG, Samoa, and Tonga

As International Women's Day 2023 shines a light on the digital gender gap and technological inclusion, watch this video to find out more about PSDI’s support for a digital gender gap audit of Papua New Guinea, Samoa, and Tonga.

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Key Publications
PSDI Country Overviews 2024
PSDI Country Overviews 2024
These fact sheets provide an overview of PSDI activities in each country to 2024.

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.
Investment For Growth: A review of foreign direct investment frameworks in the Pacific
Investment For Growth: A review of foreign direct investment...
This study reviews the FDI frameworks in Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu, to support countries to attract, retain, and assess FDI efficiently and effectively.