Australia is supporting Tonga to strengthen public finances and administration, improve the business environment, and invest in improved infrastructure for productivity and growth.
Australia is providing elevated levels of direct budget support to the Government of Tonga in recognition of recent shocks to ensure fiscal stability and economic recovery. In collaboration with the Government of Tonga and other development partners, Australia's budget support is boosting Tonga's social protection mechanisms, and leveraging fiscal and public sector policy reforms. We continue to provide support to democratic institutions including the electoral commission.
We are supporting Tonga's key priorities in economic services and nation-building infrastructure, including the upgrade of Nuku'alofa's main port, investing in a second international fibre optic cable, construction of a new parliament house building, a hospital and nursing school, as well as upgrades to basic education infrastructure across all of Tonga's island groups. Australia continues to provide targeted assistance to the aviation sector to improve domestic connectivity and the quality and reliability of the aviation sector, to maximise economic opportunities, particularly for tourism.
Regional programs are supporting sustainable economic development through labour mobility and agriculture and identifying opportunities for commercial growth. Australia is contributing to private sector growth through support for growers to upgrade their operations and enter export markets under the regional Market Development Facility program. Labour mobility continues to play a significant role in Tonga's economy through the PALM scheme.
Related initiatives
Kafa-Taha – Australia-Tonga Partnership for Governance
$100 million, 2024 – 2029
Kafa Taha: Tonga-Australia Governance Support Program aims to strengthen Tonga's fiscal stability, governance and economic performance. The Program supports a range of initiatives to improve public financial management, national budget planning and execution, public service management, as well as measures to promote economic growth. The program is delivered through performance-linked budget support, policy dialogue, technical assistance and training. Kafa-Taha builds on the previous Tonga Economic Governance program and the COVID-19 Pacific Economic Response Package.
Related documents
Queen Salote Wharf Upgrade
$31 million, 2023-2026
Australia, through the Australian Infrastructure Financing Facility for the Pacific (AIFFP) partnered with the Asian Development Bank to upgrade Tonga's main international wharf.
Tu’I Vava’u Submarine Cable Branch System
$35.6 million, 2024-2026
Australia, through AIFFP, has improved Tonga's telecommunications redundancy and resilience via the installation of an undersea cable. With support from the New Zealand Government, a 383-kilometre long cable was constructed from a branching unit on the Hawaiki Transpacific Cable to an existing cable landing station in Vava'u, Tonga. The second undersea cable, named Tu’i Vava’u, provides more reliable service to the public, with flow-on benefits for Tonga's natural disaster resilience, and national digitalisation and economic goals. Tonga has another international undersea cable, connecting Fiji to Tongatapu, and a domestic cable connecting Tongatapu, Vava'u and Ha'apai.
Parliament House and Office of the Legislative Assembly
$18 million, 2025-2028
Australia, through AIFFP, is partnering with the New Zealand Government to design and build Tonga's new Parliament House and Office of the Legislative Assembly, which were destroyed by Tropical Cyclone Gita in 2018. The Tonga Parliament Buildings Project aims to deliver a modern and climate resilient building design that will strengthen Tonga's governance and democratic participation.
Tonga Electoral Support Program
$650,000, 2023-2026
This program enables the Australia Electoral Commission to support Tonga's Electoral Commission to undertake community outreach, manage elections and build the capacity of electoral staff.