Vanuatu

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. 

Vanuatu2007 2019 web2

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

For detailed information on PSDI activities in Vanuatu, download the 2022 PSDI Country Overview here.

Vanuatu at a glance

Simplified and modernized business laws

PSDI supported a comprehensive reform to foundation business laws in partnership with the Vanuatu Financial Services Commission and the State Law Office.

Faster business registrations

Following the implementation of an online business registry, the average time needed to register a business fell from more than 6 weeks, to just 1.5 days.

35% increase in new company registrations

per year, since the implementation of an electronic registry in 2015.

Secured transactions framework

PSDI supported the creation of Vanuatu’s secured transactions framework with the Personal Property Securities Bill in 2008, and the implementation of an associated securities registry in 2009.

8,000 securities registered

As of end-2019, more than 8,000 security interests over movable assets to be used as collateral for loans have been registered in Vanuatu using the PSDI-supported secured transactions framework.
Latest News
31 August 2022
'Conscious and sustained' effort required to boost women in business leadership—PSDI Leadership Matters Vanuatu roundtable

Almost 40 government, business, and civil society representatives in Vanuatu have gathered to discuss the findings of PSDI's Leadership Matters study on women in Pacific business leadership.

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12 February 2020
With a More Competitive Private Sector, Everybody Wins

Competition in the marketplace is healthy for a country’s economy—everybody benefits.

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12 September 2019
Vanuatu Competition and Consumer Protection Policy passes

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.

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11 November 2016
Drafting a New Competition Policy in Vanuatu

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...

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14 October 2016
PSDI Presents Draft Competition Policy in Vanuatu

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...

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30 May 2016
Spreading the Word on an Easier Way to do Business in Vanuatu

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...

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Key Publications
PSDI Annual Report FY2022
PSDI Annual Report FY2022
This report gives an overview of PSDI activities from July 2021 to June 2022.
PSDI Tourism Infographic Brochure
PSDI Tourism Infographic Brochure
This infographic brochure illustrates PSDI’s work and key achievements in the Pacific tourism sector.
Finding Balance 2023: Benchmarking Performance and Building Climate Resilience in Pacific State-Owned Enterprises
Finding Balance 2023: Benchmarking Performance and Building ...
This report reviews the performance of SOEs in nine Pacific island economies and looks at how policymakers can help state-owned power utilities address climate risk.
A Secure Retirement: Leveling the Playing Field for Women in the Pacific
A Secure Retirement: Leveling the Playing Field for Women in...
This publication proposes a series of priority reforms to address women’s disadvantage in accessing benefits from Pacific retirement funds.
PSDI Country Overviews 2022
PSDI Country Overviews 2022
What is PSDI doing in the Pacific? These fact sheets provide an overview of all PSDI activities at the country level to 2022.
Reopening Borders to Tourism in Pacific Island Countries: Key Lessons and Guidance
Reopening Borders to Tourism in Pacific Island Countries: Ke...
PSDI has launched a tourism reopening framework for Pacific island countries, providing critical policy guidance as international tourists return in the post-COVID-19 era.