Pacific Island countries are stepping up efforts to strengthen private sector development, recognising its central role as the backbone of their economies and a key driver of long-term growth, employment and innovation.
The private sector remains the region’s largest employer and a major contributor to productivity, competition and wealth creation. It also plays a critical role in reducing poverty by generating jobs and improving living standards across Pacific economies.
Policymakers across Forum Member countries are now moving to elevate private sector development ambitions by promoting reforms that improve the business environment, address market failures and support enterprise creation. Efforts are also under way to enhance the capacity of Pacific businesses to participate more actively in domestic, regional and global markets.
At the national level, governments have introduced a range of initiatives, including private sector development strategies, public-private partnerships and targeted industry incentives. However, officials say the absence of a coordinated regional framework has limited the ability to fully leverage shared strengths across the Pacific.
To address this gap, the Pacific Regional Private Sector Strategy (PRPSS) was mandated by Forum Trade Ministers in 2021, aimed at driving sustainable and resilient economic growth, job creation and innovation across the region.
The inaugural strategy, covering 2025 to 2030, places a strong emphasis on micro, small and medium enterprises (MSMEs), widely regarded as the engine of Pacific economies. MSMEs are expected to play a pivotal role in economic diversification, employment generation and the promotion of entrepreneurship.
Globally, MSMEs account for between 50% and 60% of GDP, represent about 90% of businesses and contribute roughly 70% of employment. However, their full economic contribution in Pacific Island countries remains difficult to quantify due to high levels of informality and limited data collection systems.
Under the theme “Strengthening Foundations for Resilient and Inclusive MSME Growth,” the strategy aims to build a more supportive business environment and address structural challenges that constrain MSME development.
The plan focuses on six priority areas: improving the business enabling environment; supporting business growth and innovation; expanding access to finance; building resilience to economic shocks; promoting inclusive entrepreneurship; and strengthening regional dialogue.
Officials said the strategy seeks to ensure that women-led, youth-led and rural enterprises, as well as businesses in the informal sector, are given equal opportunities to grow, formalise and contribute to economic activity.
Implementation will take place over five years, with a focus on “regional collective actions” — joint initiatives undertaken by multiple countries to maximise resources and address shared challenges. These actions will be carried out in collaboration with technical agencies, development partners and international organisations.
Where regional approaches are not feasible due to differing national contexts, the strategy allows for tailored country-level interventions.
A mid-term review is planned to assess progress and enable adjustments in response to evolving economic conditions and emerging opportunities.
Officials said the strategy is designed to complement existing national reforms, while fostering deeper regional integration, knowledge-sharing and cooperation across Pacific economies.
