Development assistance in Vanuatu
Economic recovery in Vanuatu
This page provides an overview of how Australia is working in partnership with Vanuatu to deliver support against the Economic Recovery pillar of Partnerships for Recovery. It outlines key related initiatives and provides summaries of programming and related documents.
Australia is working in partnership with the Vanuatu Government to assist their economic recovery efforts through: support for the Government’s economic stimulus package; assistance to remove constraints to growth and boost conditions for business and investment; improved service delivery through policy, regulatory and management reforms; and strengthened public financial management.
Revitalisation and delivery of high quality and climate resilient infrastructure, including improvements to rural roads are facilitating the movement of people, goods and services and boosting rural economic growth.
We are also supporting Vanuatu to strengthen the national skills base and improve economic opportunities for ni-Vanuatu women and men through technical and vocational training.
Governance for Growth Phase 3
$ 20 million, Year 2017 to Year 2021
The Governance for Growth Program (GFG) supports the Vanuatu Government by helping to remove constraints and bottlenecks to economic growth, improving service delivery through policy, regulatory and management reforms and improving public financial management. Through GFG, Australia supports the policy and management roles of two central agencies, the Vanuatu Prime Minister's Office and the Ministry of Finance and Economic Management. It also supports several other central Ministries, including the Ministry of Climate Change through the Department of Energy and the Ministry of Trade and Tourism. This involves working closely with ni-Vanuatu officials on economic and financial reforms, developing good financial management systems, and supporting better planning and coordination of the government's development initiatives.
The dual crises of the COVID-19 global pandemic and Tropical Cyclone Harold have had an immediate and profound impact on Vanuatu. Consequently, GFG repositioned to respond to these crises and the needs of the Vanuatu Government, including through:
- redeploying in-country advisors to assist the Ministry of Finance and Economic Management to implement the Vanuatu Government's COVID-19 economic stimulus package
- redirecting GFG support to the Chamber of Commerce and Industry to promote business resilience and establish a support centre for businesses seeking assistance
- providing analytical support to the Ministry of Trade, Ministry of Agriculture and the Prime Minister’s Office to assist senior officials in understanding the ongoing consequences of the COVID-19 crisis and potential policy responses.
Key outcomes for this program include:
- supporting Vanuatu’s reform agenda and economic management; and
- partnering with the private sector to facilitate growth.
Roads for Development Program Phase 2
$35 million, 2019 – 2024
Australia is working with Vanuatu's Public Works Department in the Ministry of Infrastructure and Public Utilities to provide a well-maintained and reliable national road network. This program supports the Government of Vanuatu to effectively plan, build and maintain its road transport infrastructure.
The long term goal of the program is that people in Vanuatu have increased access to, and derive economic benefit from, a well-maintained, affordable and integrated road network.
Key outcomes sought are:
- the Public Works Department's strategic framework guides management and operational decision making, and
- the Public Works Department manages and maintains the road network in a cost-effective manner.
Vanuatu Skills Partnership
$20 million, 2016-2020
The Skills for Economic Growth program is an Australian Government funded program working with the Vanuatu Ministry of Education and Training (MoET) and Provincial Governments to coordinate and facilitate the delivery of targeted skills training services in communities. The program works closely with the Vanuatu Qualifications Authority (VQA), which is responsible for the Vanuatu Qualifications Framework, and supports training providers to register and to develop and deliver accredited courses that respond to productive sector demands and are linked to economic outcomes.
Given the economic impacts of COVID-19 and Tropical Cyclone Harold, the program has adjusted to ensure a core focus on developing sustainable livelihoods and food security for ni-Vanuatu.
Key outcomes sought are:
- an integrated sectoral approach for economic outcomes through skills development in four provinces of Vanuatu (Sanma, Malampa, Torba and Tafea) through support for training, business development and employment services, with a focus on expanding women's income-earning opportunities; and
- continue to strengthen the quality of local training providers and the Vanuatu Qualifications Authority to meet skills development requirements.