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.
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
80% faster business registrations
29% increase in new business registrations
Secured transactions framework
9,500 securities registered
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