Vanuatu and ADB
In the Spotlight
Vanuatu’s economy is now expected to contract slightly more than previously forecast mainly due to the adverse effect of Cyclone Pam that hit Vanuatu in March 2015.
The Government of Australia and ADB have established the Pacific Business Investment Facility, an advisory service for Pacific island businesses requiring commercial finance for growth, diversification, or consolidation of their businesses.
This brief provides representatives of national government and regional organizations—and other key decision makers in climate change, development, fisheries, agriculture, environment, and natural resource management in Coral Triangle of the Pacific (CTP) and similar countries—with policy advice to help rural communities adapt to climate change.
ADB’s energy sector interventions in Vanuatu support greater energy efficiency and investment in renewable energy, including the proposed expansion of distribution grids and development of low-cost hydropower generation to deliver energy to more households and businesses in provincial centers. Download Pacific Energy Update 2015.
Vanuatu’s economic performance has remained strong in recent years, driven primarily by tourism, construction, and aid inflows from development partners. However, the country’s remoteness, small market size, underdeveloped institutions, and limited absorptive capacity are key constraints to implementing assistance programs. The rural economy is primarily agrarian, largely subsistence farming, aside from some copra, beef, cocoa, and kava produced for export.
ADB's country operations business plan (COBP), 2015-2017 for Vanuatu aligns with the government’s Priorities and Action Agenda, 2006-2015. The COBP addresses the development needs of Vanuatu in four core sectors: energy, transport, water and other urban infrastructure and services, and private sector development.
Projects in Vanuatu
- State-Owned Enterprise Rationalization Program
- Interisland Shipping Support Project
- Expanding Access to Financial Services
- Financial Services Commission-Institutional and Legal Reform (formerly Modernizing the Legal Infrastructure for Commerce and Finance/formerly Strength
- Secured Transactions Reforms
0.27(2014) Population in millions
2.6%(2009-2014) Average annual population growth rate
12.7%(2010) Population living below the national poverty line