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Development assistance in Tuvalu

Flag of Tuvalu

Overview of Australia's aid program to Tuvalu

How we are helping

2018-19 Total Australian ODA Estimated Outcome
$9.0 million

2019-20 Bilateral Budget Estimate
$6.6 million

2019-20 Total Australian ODA Estimate
$9.3 million

Australia has a longstanding, relationship with Tuvalu based on shared development and security goals. Australia is one of the largest bilateral aid donors to Tuvalu and is committed to strengthening Tuvalu's economic and environmental resilience through our aid program.

The Australian Government will provide an estimated $9.3 million in Official Development Assistance (ODA) to Tuvalu in 2019-20. This will include an estimated $6.6 million in bilateral funding managed by the Department of Foreign Affairs and Trade (DFAT).

Tuvalu's prospects for economic growth are constrained by its distance from markets, small and dispersed population and vulnerability to both economic and environmental shocks. Gross national income per capita is USD5,840 per annum and Tuvalu has limited options to generate revenue. Its main sources of income are fishing licences, aid, the leasing of '.tv' internet domain name and distributions from the Tuvalu Trust Fund.

The private sector is small and offers limited employment opportunities. Tuvaluans rely primarily on the public sector as their principal source of employment. Tuvalu also faces development challenges arising from limited education opportunities, and modest natural resources. Climate change impacts will exacerbate these development challenges.

In line with Australia's aid policy and Tuvalu's National Strategy for Sustainable Development, Australia is working with Tuvalu to pursue the following objectives:

Objective 1: Improved governance and fiscal resilience

Australia is working with the Government of Tuvalu and other development partners (Asian Development Bank, World Bank and New Zealand) to improve the country's governance and economic prospects.

Investments for governance

Objective 2: Improved education and human resources

Australia is supporting efforts to develop a skilled and educated Tuvalu workforce by providing $1.8 million in tertiary awards for Tuvaluans to study in Australia and in the region. In 2017–18, Australia will also provide an estimated $1.25 million for the Basic Education Support Program to enhance access to quality education, curriculum development and teacher development.

Investments for education and human resources

Objective 3: Building resilience to environmental and climate change impacts

Australia is supporting Tuvalu to meet its international climate change commitments and access international climate financing by building the capacity of the country's Climate Change and Disaster Coordination Unit ($0.7 million over 2016-2020).

Investments for the environment and climate change

Cross cutting issues

Australia is working to address issues of gender equality across all our investments. The Pacific Women Shaping Pacific Development Country Plan for Tuvalu aims to reduce the incidence of gender based violence, improve the economic empowerment of women, and increase the participation of women in public life and decision making. It forms part of the regional Pacific Women Shaping Pacific Development program. Australia provided an estimated $1.8 million in technical assistance for implementing the first three years of the Country Plan for Tuvalu (July 2015 to June 2018). Supplementary support from regional organisations will be provided through the regional Pacific Women Shaping Pacific Development program allocation. A Gender and Social Inclusion adviser based in Tuvalu will guide this work in mainstreaming gender equality.

Our results

Australia's aid program has contributed to:

Objective 1: Improved governance and fiscal resilience

  • Australia has supported the Government of Tuvalu to undertake significant economic reforms in fiscal sustainability and public financial management. These reforms have also increased the transparency and accountability of government services.

Objective 2: Improved education and human resources

  • In 2017-18 we assisted the Government of Tuvalu to improve the quality of education in primary and secondary schools by providing additional teaching resources (in science, English and mathematics) and supporting a range of school management reforms, including upgrades to the curriculum and the professional development of teachers. These reforms included new minimum quality service standards, which ensure all school children receive the same quality of education (eg. teacher to children ratios, sanitation standards). Schools receive small grants to assist them to implement their improvement plans to meet the standards.
  • In 2018, Australia provided 18 Australia Awards university scholarships to Tuvaluans to study in Australia and the region.

Objective 3: Building resilience to environmental and climate change impacts

  • Australia supported Tuvalu to recover from the destruction caused by Tropical Cyclone Pam. Together with the Red Cross, Australia immediately released pre-positioned water and medical supplies and deployed experts in logistics and water and sanitation. Australia is supporting longer-term recovery and reconstruction efforts in consultation with the Government of Tuvalu, including support to improve health services, re-establish crops and to strengthen the operations of the Tuvalu Red Cross and Tuvalu Government Disaster and Relief Coordination Unit.

Our changing program

Australia's proposed aid objectives are guided by priorities agreed with the Government of Tuvalu and an assessment of key constraints to economic growth and poverty reduction. They reflect an understanding of where our aid can most effectively support Tuvalu's development, strengthen its economic and environmental resilience and complement support provided by other development partners working in Tuvalu.

We have broadened our support for labour mobility by expanding opportunities for Tuvaluan workers under the Seasonal Worker Programme. The program, led by the Department of Jobs and Small Business, connects Pacific island workers with Australian employers experiencing seasonal labour shortages. A new Pacific Labour Scheme commenced on 1 July 2018. The scheme enables citizens of Tuvalu and other Pacific island countries to take up low and semi-skilled work opportunities in rural and regional Australia for up to three years.

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