The Asian Development Bank (ADB) and the Australian government have committed $12.85 million to the fifth phase of the Pacific Private Sector Development Initiative (PSDI), aimed at improving business regulations, expanding access to finance and encouraging private sector investment across the Pacific.

In a statement on October 12, ADB said the renewed funding would support reforms designed to make it easier for businesses to start, operate and expand, while addressing emerging challenges involving digitalisation, climate resilience and financial regulation.

The initiative, launched in 2007, has supported more than 500 reforms across ADB's 14 Pacific developing member countries, including improvements to business registration systems, financial markets and state-owned enterprise governance.

The fifth phase will receive $3 million from ADB's Technical Assistance Special Fund and $9.85 million in co-financing from the Australian government.

ADB Pacific Department Regional Head for Private Sector Development Haroun Khawaja said the funding would allow the programme to continue modernising the legal and regulatory frameworks governing business activity.

“With this commitment, PSDI’s important work to modernize the laws and frameworks that underpin business activity will continue, and so too will its efforts to ensure those reforms work in practice: stronger institutions, digital systems that simplify business processes, and finance that reaches small enterprises and women entrepreneurs,” Khawaja said.

He also acknowledged Australia's longstanding support for the initiative, which has helped Pacific governments implement private sector reforms for nearly two decades.

Focus on business reforms and access to finance

Under Phase V, PSDI will work with Pacific governments to modernise business, investment and financial sector laws while strengthening the institutions responsible for implementing regulatory reforms.

The programme will continue supporting online business registries, which have reduced the time and cost of establishing businesses in participating countries.

It will also develop financing mechanisms for micro, small and medium-sized enterprises (MSMEs), building on earlier reforms involving secured transactions frameworks, capital markets and innovative financing arrangements.

ADB said Pacific economies continued to face significant barriers to private sector growth, including small and geographically dispersed markets, high operating costs, limited access to finance and exposure to climate-related disasters.

Outdated legal and regulatory frameworks have also constrained investment, employment and business opportunities, particularly for women and small enterprises.

The new phase will therefore place greater emphasis on digital government, climate and disaster resilience, anti-money laundering and combating the financing of terrorism (AML/CFT), and disability inclusion.

Expanding opportunities for women

Women's economic empowerment will remain a priority, with PSDI seeking to strengthen the data, systems and institutions that support women's participation in business and leadership.

Previous phases helped develop a pipeline of qualified women for senior executive and board positions across the region.

The initiative has also supported reforms intended to improve financial inclusion and create opportunities for women entrepreneurs.

Under the latest programme, ADB said these efforts would be expanded alongside institutional reforms and knowledge-sharing activities aimed at encouraging governments and businesses to adopt improved regulatory practices.

The programme will also continue efforts to strengthen the governance and performance of state-owned enterprises, which play important roles in delivering essential services and supporting economic activity across Pacific countries.

Nearly two decades of regional support

Since its establishment in 2007, PSDI has received substantial financial backing from Australia, New Zealand and ADB.

Across its first four phases, the Australian government contributed $76.2 million, while New Zealand provided $8.9 million and ADB committed $11.1 million.

The latest $12.85 million commitment brings total funding for the initiative across its five phases to approximately $109.05 million.

ADB said the programme would continue working with partner governments to ensure regulatory reforms translate into stronger institutions, more efficient business processes and greater opportunities for private sector development.

The initiative forms part of ADB's broader efforts to promote sustainable, inclusive and resilient economic growth across Asia and the Pacific.

Fiji has pledged US$10 million to the Pacific Resilience Facility (PRF), as Pacific nations step up efforts to secure climate and disaster resilience financing ahead of the COP31 climate summit.

Fiji Prime Minister Sitiveni Rabuka announced the contribution during the high-level event Turning Climate Finance into Community Resilience, held on the sidelines of the Pacific Pre-COP31 meetings in Nadi on 9 October.

Denmark also announced a contribution of US$2.3 million, while the Netherlands pledged a further US$1 million to support the facility's operationalisation.

The latest commitments bring total pledges to the PRF to US$190 million, moving the regional initiative closer to its initial capitalisation target of US$500 million. The facility aims to build towards US$1.5 billion to support climate resilience efforts aligned with limiting global warming to 1.5°C.

Established by Pacific Islands Forum members, the PRF is designed to provide accessible, predictable and sustainable financing for climate and disaster resilience, with Pacific priorities, ownership and decision-making at the centre of its operations.

Pacific Islands Forum leaders reaffirmed the facility as the region's leading climate investment priority at their annual meeting in Palau in early September.

Pacific Islands Forum Secretary-General Baron Divavesi Waqa welcomed the new contributions, describing the facility as an expression of regional leadership in developing solutions to climate change.

He said the initiative placed Pacific priorities, ownership and solutions at the centre of efforts to build a more resilient region, while acknowledging the continued support of forum leaders, members and international partners.

The PRF is intended to help Pacific communities access funding for climate adaptation and disaster resilience, addressing the region's efforts to translate international climate commitments into practical support for communities exposed to climate-related risks.

As the Pacific prepares for COP31, the facility is expected to play a central role in the region's push for climate financing mechanisms that respond to local needs and strengthen community resilience.

Solomon Islands Prime Minister Matthew Wale has called on major greenhouse gas emitters to make deep, economy-wide emissions cuts, warning that the world is on track to exceed the 1.5°C global warming threshold.

Addressing the leaders’ plenary at the Pacific Pre-COP31 meeting in Nadi, Wale said decades of climate negotiations had failed to deliver the ambition required under the Paris Agreement.

“COP31 cannot be another talkfest,” Wale said, urging Group of Seven (G7) countries to increase their climate ambition in line with their historical responsibility and major emerging economies, including BRICS members, to lead on emissions reductions.

He highlighted the scale of fossil fuel subsidies, citing International Monetary Fund estimates of US$7.43 trillion, which he said exceeded global climate finance of US$2.1 trillion in 2025 by more than three times.

“We are paying to fuel the overshoot,” he said.

Wale also criticised global spending priorities, noting that military expenditure reached nearly US$2.9 trillion last year, more than 16 times official development assistance, even as aid declined by almost a quarter.

“The shortfall in what reaches us is not because the world lacks money. It is because it lacks political will,” he said.

He called for climate finance to be grant-based, demand-driven and channelled through national systems. He also urged development partners, multilateral development banks and climate funds to use the Multi-Dimensional Vulnerability Index (MVI) when determining access to funding.

“Finance must follow vulnerability,” he said.

Wale further called for published disbursement timelines, independent tracking of pledges against actual delivery, full capitalisation of the Pacific-led Pacific Resilience Facility (PRF) and a strong third replenishment of the Green Climate Fund.

Solomon Islands calls for accessible climate finance

Solomon Islands Environment, Climate Change, Disaster Management and Meteorology Minister Wayne Ghemu echoed the call for climate finance that responds to the needs of vulnerable Pacific communities.

Speaking at Pre-COP31, Ghemu said adopting the MVI would better reflect the circumstances of small island developing states and help unlock development and climate finance from public and private sources.

He cited Tropical Cyclone Malia, which caused more than US$30 million in damage to Solomon Islands, as an example of why funding mechanisms must be suited to the needs of climate-vulnerable countries.

Ghemu said Pacific governments were strengthening their own financial management systems through measures such as climate budget tagging and linking public spending to vulnerability assessments.

“These reforms are about Pacific leadership, ownership and agency,” he said.

However, he stressed that stronger national systems did not diminish the responsibility of international partners to provide adequate and predictable funding.

“The international community must continue to meet its responsibility to provide climate financing that is adequate, predictable and accessible for vulnerable countries like ours that are at the frontline of climate change,” he said.

Ghemu also welcomed the PRF, which Pacific leaders backed at their September 2025 meeting in Honiara and which is already supporting community projects in nine Pacific countries.

He urged development partners to convert their pledges into paid-in capital to enable the facility to expand its support for climate resilience across the region.

The calls from both leaders underscore the Pacific's push for stronger emissions reductions, funding arrangements that account for countries' vulnerability, and greater accountability for climate finance commitments ahead of COP31.

The Asian Development Bank (ADB) and the Australian government have committed $12.85 million to the fifth phase of the Pacific Private Sector Development Initiative (PSDI), continuing efforts to improve the business and investment environment across the region.

The initiative will help governments in ADB’s 14 Pacific developing member countries modernize business, investment and financial sector regulations, strengthen institutions and expand access to finance for micro, small and medium-sized enterprises.

Since its launch in 2007, PSDI has supported more than 500 reforms, including improvements to business laws, online business registries, secured transactions frameworks and capital markets. It has also supported reforms to strengthen state-owned enterprises and increase women’s representation in senior executive and board positions.

ADB Pacific Department Regional Head for Private Sector Development Haroun Khawaja said the new funding would sustain efforts to modernize business regulations and strengthen institutions, digital systems and financing mechanisms for small enterprises and women entrepreneurs.

ADB also cited its long-standing partnership with Australia as central to the initiative’s work since 2007.

Pacific economies face high business costs, limited access to finance and small, geographically dispersed markets. Exposure to climate-related disasters and regulatory frameworks that have not kept pace with changing business needs also constrain investment and job creation.

PSDI Phase V will support reforms to business and financial regulations, strengthen business registries and state-owned enterprises, and develop financing approaches for smaller businesses.

The program will also promote women’s economic empowerment through improved data, systems and institutional support, while producing research and outreach materials to encourage reform.

New priorities include climate and disaster resilience, digital government, anti-money laundering and countering the financing of terrorism, and disability inclusion.

The latest phase is funded by $3 million from ADB’s Technical Assistance Special Fund and $9.85 million in Australian government cofinancing.

Across its four previous phases, PSDI received $76.2 million from Australia, $8.9 million from New Zealand and $11.1 million from ADB.

ADB is a multilateral development bank established in 1966 to support sustainable, inclusive and resilient growth across Asia and the Pacific. It is owned by 69 members, including 50 from the region.

Fiji is seeking to expand financing for climate-resilient infrastructure and attract greater private investment as Pacific countries face growing climate risks, the Ministry of Finance said.

Finance Minister Esrom Immanuel and ministry officials participated in Pre-COP31 discussions focused on climate resilience, infrastructure development and access to finance across the Pacific.

At the invitation of the World Bank, Immanuel joined a panel discussion titled “Building Resilience Without Sacrificing Growth: Pathways for the Pacific”, which examined how countries can strengthen climate resilience while sustaining economic growth.

Drawing on the World Bank Group's Country Climate and Development Reports for Fiji, Kiribati, Tuvalu and the Republic of the Marshall Islands, participants discussed investment priorities in infrastructure, tourism, fisheries, human capital, clean energy and ecosystem protection.

The discussions also covered climate finance, governance and practical measures to implement these priorities.

Immanuel attended a bilateral meeting between Prime Minister Sitiveni Rabuka and Asian Development Bank President Masato Kanda, which highlighted the development bank's support for Fiji and the wider Pacific, particularly in infrastructure development.

Following the meeting, Immanuel and ADB Pacific Department Director General Emma Veve signed an agreement. The ministry's announcement did not specify the agreement's details.

Ministry officials also attended a KPMG-organised side event, “From Ambition to Investment: Financing Pacific Infrastructure”, represented by Debt Management Unit Manager Sisilia Nalaide and Infrastructure Sector Manager Tevita Tuibau.

The event brought together government representatives, development partners, financiers and private sector leaders to explore ways to mobilise investment in sustainable and climate-resilient infrastructure across the region.

Another plenary session, “Vulnerable to Investable: Reimagining Finance for the Pacific”, examined ways to improve climate readiness and increase funding for national and regional priorities.

Participants discussed attracting financing beyond public funds, including private investment, philanthropic support and blended finance combining public and private capital.

The discussions reflect efforts by Pacific governments and development partners to mobilise additional funding for infrastructure and climate adaptation, while balancing resilience requirements with economic growth.

The Association of Development Financing Institutions in the Pacific (ADFIP) has highlighted the Fiji Development Bank’s (FDB) launch of the Lau Seascape Impact Facility Fund, a new financing mechanism designed to strengthen climate resilience, protect biodiversity and support sustainable economic development across Lau Province.

The facility was officially launched during the annual Matabose ni Yasana o Lau in the presence of traditional leaders and chiefs representing the 13 districts of Lau.

FDB is delivering the initiative in partnership with Conservation International (CI) Fiji, with the facility designed to provide more inclusive financial pathways for communities and businesses involved in sustainable economic activities.

The financing mechanism will support micro, small and medium enterprises (MSMEs), eco-tourism ventures and blue economy projects through a combination of concessionary climate loans, business coaching and financial literacy training.

The initiative seeks to address the financing needs of businesses and communities while supporting activities that contribute to the sustainable management of marine and coastal resources.

By integrating financial access with community training and traditional stewardship, the facility aims to link conservation with sustainable economic development, enabling communities to pursue livelihoods while strengthening environmental resilience.

The rollout is already underway in Yasayasa Moala. FDB and its partners are planning further visits to Matuku, Totoya, Lakeba, Vanua Balavu and Cicia, as well as neighbouring islands, to take the programme directly to communities in the outer islands.

The geographic rollout is intended to improve access to financial and technical support for communities outside Fiji’s main urban and economic centres, while recognising the role of local communities and traditional leadership in managing natural resources.

ADFIP said the initiative highlights the role development finance institutions can play in bridging financial inclusion and climate resilience.

The association said FDB’s work demonstrates how development financing can be structured to support not only access to capital but also the skills, knowledge and community structures needed to build sustainable businesses and livelihoods.

The facility also reflects FDB’s broader focus on climate risk financing, sustainable agriculture and community-driven development, particularly as Pacific communities face increasing environmental and economic pressures associated with climate change.

For Lau communities, the initiative provides potential financing and capacity-building support for activities linked to tourism, marine resources and the broader blue economy, while promoting conservation and sustainable use of natural resources.

ADFIP congratulated FDB and Conservation International Fiji on the launch of the facility, highlighting the initiative as an example of how development finance can support locally driven economic opportunities while strengthening climate and environmental resilience across the Pacific.

The Asian Development Bank (ADB) has approved a $12.6 million grant to strengthen urban resilience and disaster preparedness in Vanuatu’s Greater Port Vila area.

The financing is the third ADB grant for the Greater Port Vila Urban Resilience Project and is funded through the Asian Development Fund. It is complemented by a $5.6 million grant from the Green Climate Fund through the Community Resilience Partnership Program Investment Fund and a $700,000 in-kind contribution from the Vanuatu government.

“Vanuatu is highly exposed to disasters caused by natural hazards which are becoming increasingly frequent and severe,” said Jyotsana Varma, regional director of ADB’s Pacific Liaison and Coordination Office.

“This additional financing will build on the strong foundation already established through the project in providing shelter during such emergent situations,” she said.

The new financing will support the construction of three multipurpose emergency shelters in Agathis, Freshwind and Nambatri.

The shelters will provide safe and resilient facilities for vulnerable communities during disasters, while serving as community gathering spaces and markets during normal periods.

The financing will also support the development of an emergency shelter strategy to regularly assess shelter capacity, identify service gaps and guide the planning and prioritisation of future shelter investments.

ADB said the project is expected to directly benefit at least 23,400 people, including 11,700 women, by 2031 through improved access to resilient urban assets and services.

ADB began financing the project in 2020 with a $9.6 million grant to support urban service delivery, climate resilience and disaster preparedness in Vanuatu.

A further $2.9 million grant was provided in 2022 to expand urban resilience planning and infrastructure investments and launch nature-based coastal protection measures in Greater Port Vila.

Varma said ADB was working with the Vanuatu government and local communities on arrangements to use and maintain assets created under the project.

“We are pleased to be working closely with the government and local communities, including on arrangements to use and maintain the assets already created, so that these investments continue to serve people well into the future,” she said.

The Asian Development Bank has approved a new rapid-response financing project for Vanuatu, giving the Pacific island nation faster access to funds following disasters and other major emergencies.

The Vanuatu Rapid Response Contingent Project is the first project approved under ADB’s Rapid Resource Reprogramming and Deployment Option (3RDO), a region-wide mechanism that allows countries to redirect existing undisbursed ADB financing towards emergency response and early recovery.

ADB said the financing can be used to support affected families, provide essential supplies and equipment, and restore damaged public services and infrastructure.

“The economic shocks hitting the region from the conflict in the Middle East are the latest crisis, but they won’t be the last,” ADB President Masato Kanda said.

“Vanuatu will face any crises in the future with a financing route open and ready to move money where it is needed most. This project is designed to get help to families and restore essential services before a shock becomes a prolonged emergency.”

Disaster exposure 

Vanuatu has suffered average annual disaster-related losses of $35.7 million since 2006, with weather-related events including tropical cyclones, droughts and floods accounting for 86 per cent of those losses, according to ADB.

The bank said Vanuatu’s dispersed islands, limited infrastructure and underlying social and economic vulnerabilities make disasters particularly disruptive to agriculture, fisheries, tourism, health, education and housing.

The new financing mechanism can be activated following earthquakes, tsunamis, tropical cyclones, severe droughts and El Niño-related impacts.

It can also respond to food, health and biological emergencies, pollution or contamination incidents, as well as economic crises, including external price shocks, disruption to connectivity and prolonged utility outages.

Under the 3RDO mechanism, small island developing states such as Vanuatu can reallocate up to 25 per cent of their undisbursed and uncommitted public-sector ADB portfolio through a pre-arranged rapid-response contingent project.

ADB said the mechanism would be integrated into Vanuatu’s national disaster risk-management system and complement existing disaster-risk financing instruments.

It is also intended to strengthen the country’s institutional preparedness so that financing can be deployed more quickly when a crisis occurs.

Regional mechanism 

The Vanuatu project represents the first use of 3RDO since ADB introduced the mechanism to accelerate emergency financing across Asia and the Pacific.

The bank said the approach is intended to ensure that countries do not have to establish a new financing arrangement from scratch after a disaster, allowing resources to be redirected through a pre-arranged structure.

ADB said the mechanism would help Vanuatu respond to future shocks while supporting early recovery and the restoration of essential services.

The initiative comes as Pacific island countries face continuing exposure to climate-related disasters and economic disruptions, while their geographic dispersion and infrastructure constraints can increase the cost and complexity of emergency response.

Fiji Development Bank staff are taking part in an international peer-to-peer learning exchange in Thailand aimed at strengthening approaches to agricultural, rural and climate finance.

The exchange, running from Aug. 17 to 21, brings FDB staff together with the Bank for Agriculture and Agricultural Cooperatives (BAAC) in Thailand. The programme is facilitated by the Agri-PDB Platform hosted by the International Fund for Agricultural Development (IFAD), in partnership with the Asia-Pacific Rural and Agricultural Credit Association (APRACA).

The two development-focused financial institutions are exchanging experiences on supporting smallholder farmers, rural communities and climate-resilient agriculture.

Key areas of the programme include climate-smart and agroecological agriculture, green and climate finance, blended finance and innovative financial instruments, agricultural and rural development financing, value-chain development and financial inclusion.

The exchange also covers institutional knowledge and capacity building, giving participants an opportunity to examine practical approaches and implementation challenges.

BAAC has more than five decades of experience in agricultural development finance and serves millions of farming households across Thailand.

FDB is Fiji's national development financial institution and is a Green Climate Fund Direct Access Accredited Entity. The bank said the exchange would help strengthen its role in financing Fiji's transition towards a more resilient and sustainable economy.

The programme is intended to go beyond a study visit by allowing the institutions to share experiences, identify effective approaches and bring lessons from the exchange back to Fiji.

FDB said stronger knowledge and partnerships can contribute to better financing solutions for farmers and rural communities while supporting more resilient communities and a sustainable future for Fiji.

Fiji’s Ministry of Tourism and Civil Aviation has opened applications for a pilot fund aimed at helping locally owned micro and small tourism businesses expand and diversify their products and services.

Applications for the Pilot Tourism Micro and Small Enterprise Fund for the 2026-27 financial year opened Wednesday and will remain open until Sept. 30, 2026.

The fund will provide grants to eligible Fijian-owned tourism businesses, with support covering both capital projects and operational activities.

The ministry said the initiative is intended to strengthen the sustainability of tourism micro and small enterprises and support the development of new tourism products and experiences that can benefit visitors and local communities.

Eligible applicants must be Fijian citizens aged at least 18 and own a registered business that has operated for a minimum of two years.

Businesses must be at least 51% Fijian-owned, generate the majority of their revenue from tourism and be able to contribute at least one-third of the total project cost.

Funding can be used for product and experience improvements, website upgrades and other efforts to improve business visibility, technology adoption, visitor amenities and signage, small-scale infrastructure such as trails, and equity funding through financial institutions.

The fund also covers activities involving culture and heritage, environmentally sustainable tourism such as birdwatching and trekking, accessibility improvements, heritage-site upgrades, agritourism and wellness tourism.

Businesses with annual turnover of more than F$300,000 are excluded from the program, along with proposals for debt refinancing, applications from civil servants and large-scale infrastructure projects.

The ministry said applicants should review the Pilot MSE Tourism Fund Policy before submitting their applications.

Applications are being submitted online through the Ministry of Tourism and Civil Aviation website. The ministry also has an appeal and grievance process for applicants who want to challenge aspects of the program or decisions made during assessment.

The fund is part of the government’s efforts to strengthen participation by smaller businesses in Fiji’s tourism industry, which relies heavily on micro, small and medium enterprises.

Applications close on Sept. 30, 2026.

Fiji has launched its first climate risk insurance product designed specifically for micro, small and medium enterprises (MSMEs), offering businesses rapid financial assistance after cyclones and floods through automatic payouts triggered by predefined weather conditions.

The product, unveiled by Minister for Commerce and Business Development Esrom Immanuel, uses parametric insurance, which differs from conventional insurance by releasing payments once agreed triggers—such as cyclone wind speeds or excessive rainfall—are met, eliminating the need for lengthy damage assessments.

The initiative aims to help affected businesses quickly replace inventory, repair damaged premises, retain employees and resume operations following extreme weather events.

The launch comes as climate-related disasters continue to impose heavy economic losses on Fiji. According to estimates by the Reserve Bank of Fiji, cyclones and floods cost the country more than US$500 million (about FJ$1.1 billion) annually, equivalent to more than 5 percent of gross domestic product.

MSMEs account for more than 80 percent of Fiji's registered businesses, yet many remain financially vulnerable. Studies presented during the launch showed that nearly 80 percent of MSMEs are affected by natural disasters each year, while many lack adequate insurance coverage.

"When MSMEs thrive, Fiji thrives; when they are vulnerable, our economy is vulnerable," Immanuel said.

"This product gives our entrepreneurs assurance that they can recover, rebuild and continue supporting their families, employees and communities."

The insurance product was developed following consultations with more than 850 MSMEs and through collaboration among the Fiji government, the Reserve Bank of Fiji, the United Nations Capital Development Fund (UNCDF), the United Nations Development Programme (UNDP), Tower Insurance and other partners.

The initiative forms part of the government's broader MSME development strategy, which includes more than FJ$140 million in planned investments during the new financial year for financial assistance, advisory services, financial literacy and entrepreneurship training.

The government said it will continue working with insurers and development partners to expand awareness and access to the insurance product, particularly among businesses in rural and maritime communities.

Officials said the scheme is expected to strengthen climate resilience by enabling faster business recovery, protecting livelihoods and preserving jobs across Fiji.

The Fijian government, together with the International Fund for Agricultural Development (IFAD) and the Global Environment Facility (GEF), has launched the Fiji Blue Economy and Green Community Development Programme (BE-GREEN), a $24.26 million initiative aimed at transforming rural livelihoods while restoring ecosystems on Vanua Levu.

The multi-phased investment program will help rural communities transition from subsistence farming to market-oriented enterprises, including agroforestry, seaweed farming and eco-tourism. It also seeks to restore degraded forests, mangroves and abandoned sugarcane fields while strengthening value chains for cocoa, root crops, beekeeping, seaweed and sea grapes.

Speaking at the launch on July 24, Prime Minister Sitiveni Rabuka said the initiative supports Fiji's National Development Plan 2025–2029 and Vision 2050, which aim to promote inclusive economic growth, environmental protection and development in rural and island communities.

Implemented by the Ministry of Agriculture, Waterways and Sugar Industry, in partnership with the Ministry of Environment and Climate Change, BE-GREEN will support community-led business and environmental plans through matching grants for rural entrepreneurs and cooperatives investing in eco-tourism, agricultural processing and value-added products.

The program will also pilot a partnership with the Reserve Bank of Fiji to encourage households to channel overseas remittances into productive rural savings and investments.

The first phase is expected to directly benefit about 6,550 households, or approximately 39,300 people, with a focus on women, youth and iTaukei communities.

IFAD Associate Vice President Donal Brown said the program demonstrates how restoring forests, freshwater systems and coastal ecosystems can improve rural incomes while protecting natural resources that support Fiji's agriculture and tourism sectors.

BE-GREEN aligns with IFAD's Pacific Islands Regional Strategic Opportunities Programme (RESOP), which guides the organization's investments across 13 Pacific Island countries through 2033 to address rural poverty, food insecurity, climate change and geographic isolation.

IFAD has supported development programs in the Pacific for more than four decades, mobilizing $557 million in investments, including $194 million from its own loans and grants, benefiting around 1 million people across the region.

Solomon Islands has strengthened its partnership with Japan after signing a Development Policy Loan agreement with the Japan International Cooperation Agency (JICA) aimed at supporting fiscal stability, governance reforms and long-term economic resilience.

The agreement was signed in Tokyo by Minister for Foreign Affairs and External Trade Rick Houenipwela, who described the financing as an important step in advancing the government's reform agenda.

"This initiative supports our commitment to strengthening governance, advancing sound fiscal reforms and building a more resilient and inclusive economy," Houenipwela said.

He said the partnership supports the government's four national priorities: strengthening institutions, building a productive economy, responsibly managing natural resources and investing in people.

JICA President Akihiko Tanaka said Japan remains committed to supporting Solomon Islands' development agenda, describing the government's priorities as "a clear and forward-looking vision."

"We believe this project will strengthen the institutional and fiscal foundations needed to advance these priorities and support sustainable development," Tanaka said.

He noted that JICA has partnered with Solomon Islands for nearly five decades, supporting projects in infrastructure, natural resource management and public investment systems.

"Japan remains a trusted partner supporting the government's reform efforts and development aspirations," he said.

Houenipwela welcomed Japan's continued assistance, describing the country as a reliable development partner that has supported Solomon Islands through both challenges and opportunities.

He said the agreement would further strengthen bilateral relations while contributing to sustainable economic growth and improved public sector governance.

Both sides expressed confidence that the partnership would help build a more resilient, inclusive and prosperous future for Solomon Islands.

The Solomon Islands government has signed contracts with 83 companies under its Preferred Supplier Arrangement (PSA), clearing the way for the full implementation of the 2026 Constituency Development Fund (CDF) programme.

The Ministry of Rural Development (MRD) said the legally binding agreements followed the completion of the government's supplier qualification process, enabling the approved companies to provide goods, materials, equipment and services for development projects across the country's 50 constituencies.

Of the successful suppliers, 39 are indigenous-owned businesses and 44 are foreign-owned, reflecting stronger participation by local companies compared with previous years.

The ministry said the signing marked a key milestone in rolling out the 2026 CDF budget by allowing constituencies to begin procuring resources needed for rural infrastructure and community development projects.

The PSA is a government procurement mechanism designed to improve purchasing efficiency by pre-qualifying legally registered suppliers for commonly procured goods and services.

Under the arrangement, procurement will be conducted in accordance with Sections 73 and 74 of the Public Financial Management Act 2013 and Section 28 of the Constituency Development Fund Act 2023. The contracts will remain valid for 12 months.

MRD said procurement activities would be jointly monitored by the ministry and the Ministry of Finance and Treasury to ensure compliance with procurement laws and safeguard the delivery of quality goods and services to constituencies.

The ministry said supplier selection underwent a rigorous technical evaluation, including site inspections by the MRD Technical Evaluation Committee, followed by reviews from the Ministry of Finance and the Central Tender Board before contracts were awarded.

It also negotiated fixed prices for a range of commonly purchased items based on prevailing market rates to improve value for money and provide pricing certainty throughout the contract period.

The qualified suppliers will provide products across multiple sectors, including hardware and building materials, forestry products, marine and fishing equipment, plant and motor vehicles, electrification supplies, plumbing and sanitation equipment, communications equipment, sporting goods, agricultural equipment, tailoring and fabric printing equipment, kitchenware and retail goods.

The ministry said 86 companies submitted bids after the tender opened in January, with three applicants disqualified for failing to meet minimum technical requirements.

Under the 2026 programme, the Solomon Islands government has allocated SI$250 million for constituency development, with each constituency receiving SI$5 million.

Of the allocation, SI$3.2 million per constituency will be spent through the Preferred Supplier Arrangement, while the remaining SI$1.8 million will be provided as direct grants.

Funding will be distributed in line with the Constituency Development Fund Act 2023, with 40% allocated to productive and resource sectors, 20% to essential services, 20% to cross-sectoral, inclusivity and gender initiatives, and 20% to social and cultural obligations.

The Ministry of Rural Development said implementation of the 2026 Constituency Development Fund programme is progressing as planned.

Senior officials from Pacific Islands Forum (PIF) member countries, regional organisations and development partners have gathered in Nadi this week to strengthen regional access to climate finance and develop a pipeline of investment-ready projects ahead of the inaugural Pacific Climate Finance Investment Forum in 2027.

The three-day Climate Finance Access and Mobilisation Strategy (CFAMS) Preparatory and Prioritisation Workshop, running from 15 to 17 July, marks a key milestone in implementing the strategy endorsed at the Special Meeting of the Forum Economic Ministers in March 2025.

The workshop aims to translate the strategy's regional priorities into a coordinated programme of investable climate and resilience projects capable of attracting greater international climate finance.

Senior officials from finance, planning and climate change ministries across Forum member countries are participating in discussions to better align national priorities with regional financing objectives while identifying high-impact investments that can be advanced through regional cooperation.

Pacific Islands Forum Secretary General Baron Divavesi Waqa said the workshop was an important step towards achieving the region's long-term development ambitions.

"The 2050 Strategy reminds us that our future will be shaped by Pacific-led solutions and stronger regional cooperation. Climate finance is fundamental to achieving that vision," Waqa said.

"Through this workshop, our members are identifying shared priorities, strengthening collaboration and preparing a portfolio of strategic investments that reflects Pacific ownership. The 2027 Pacific Climate Finance Investment Forum will provide an opportunity to connect these priorities with partners who are ready to invest in a more resilient and sustainable Blue Pacific."

Opening the workshop, Pacific Islands Forum Deputy Secretary General Desna Solofa said climate change had become not only an environmental issue but also a development, economic, fiscal and existential challenge for Pacific island countries.

She said climate impacts were affecting every aspect of Pacific economies, from infrastructure, agriculture and fisheries to health, water security and disaster resilience, while the scale of investment required far exceeded the fiscal capacity of most countries.

Although the international community increasingly recognises the vulnerabilities of Small Island Developing States, Solofa said access to climate finance remained constrained by lengthy approval processes, fragmented funding arrangements, limited institutional capacity and increasingly complex financing requirements.

She said these challenges prompted Forum Economic Ministers to endorse the Climate Finance Access and Mobilisation Strategy as the region's collective framework for improving access to and mobilisation of climate finance.

According to Solofa, the strategy provides a practical roadmap to improve regional coordination, strengthen institutional capacity, build investment-ready project pipelines, expand partnerships and increase the scale and effectiveness of climate finance reaching Pacific communities.

She stressed that the strategy was not intended to replace national development plans, Nationally Determined Contributions or National Adaptation Plans, but instead to identify where countries share common priorities and investment opportunities.

"Where multiple countries face similar challenges, similar investment needs and similar opportunities, we have the opportunity to elevate those priorities into regional programmes that can unlock economies of scale, strengthen collaboration and attract larger and more strategic investments," she said.

Solofa said bringing national priorities together would enable the region to present a stronger case to development partners, multilateral development banks, climate funds and private investors.

She said the workshop would validate country priorities, identify regional investment opportunities, examine financing pathways and begin shaping the Pacific Climate Finance Investment Forum planned for 2027.

"The success of that Forum will depend entirely on the quality of the work we undertake here this week," she said.

"Our objective is to leave this workshop with a clearer understanding of where our collective priorities lie, what investments are ready to progress, where additional preparation is required, and how regional collaboration can help accelerate access to finance."

Solofa called for closer collaboration among governments, regional organisations and development partners, saying continued cooperation across the Blue Pacific would be essential to transforming today's priorities into tomorrow's investments.

As climate impacts continue to intensify across the region, the workshop underscores the Pacific's commitment to improving access to climate finance and converting regional priorities into bankable projects that strengthen resilience, support sustainable development and deliver long-term benefits for Pacific communities.

The inaugural Pacific Climate Finance Investment Forum, scheduled for 2027, is expected to become the region's flagship platform for climate investment.

The forum will bring together Forum member governments, multilateral development banks, climate funds, philanthropic organisations, private investors and development partners to mobilise financing for transformative projects aligned with the Pacific's climate and development priorities.

The Fiji government has defended its borrowing programme, arguing that public debt is being used primarily to finance long-term infrastructure projects that will strengthen economic growth and improve productivity rather than fund day-to-day government expenditure.

Responding to public debate over the country's fiscal position following the release of the 2026-27 National Budget, the Ministry of Finance said much of the government's recent borrowing has been directed towards roads, bridges, water infrastructure, public buildings, border facilities and digital government systems that are expected to deliver economic benefits for decades.

The ministry said these investments should be viewed as capital expenditure rather than recurrent spending, noting that modern infrastructure is essential to attracting private investment, supporting tourism, improving logistics and creating economic opportunities throughout Fiji.

Officials said better transport networks, more reliable utilities and upgraded public infrastructure would reduce business costs, improve connectivity and raise productivity across key sectors of the economy.

The government acknowledged that Fiji, like many countries, experienced a sharp rise in public borrowing during and immediately after the Covid-19 pandemic as authorities sought to protect employment, support businesses and maintain essential public services during the economic downturn.

Since then, restoring fiscal sustainability while continuing to invest in infrastructure has become one of the government's principal economic objectives.

The ministry said improving revenue collection, maintaining responsible expenditure management and supporting stronger economic growth will remain central to its fiscal strategy as it works to gradually reduce the budget deficit while sustaining investment.

The government's position comes as Fiji's 2026-27 National Budget adopts what officials describe as a strategy of fiscal consolidation rather than sweeping reform, reflecting an economy where tourism has largely recovered, construction activity remains robust and private investment continues to improve.

One of the budget's most notable features is the decision to leave major tax settings largely unchanged.

Corporate income tax, personal income tax and value-added tax remain broadly intact, providing businesses with greater policy certainty and allowing investors to plan long-term projects with increased confidence, particularly in sectors such as tourism, manufacturing and construction.

Infrastructure remains the centrepiece of the government's economic strategy.

Funding has been allocated to transport infrastructure, water systems, public services, border facilities and digital government initiatives, including measures to streamline building approvals through digital platforms to improve the ease of doing business.

The government said these investments are intended not only to support employment during construction but also to improve long-term productivity and lower operating costs for businesses.

The budget also places increased emphasis on workforce development as Fiji continues to address shortages of skilled labour.

Measures include revisions to the National Training and Productivity Centre levy and enhanced tax deductions for employer-funded training programmes, reflecting concerns over the continued migration of experienced workers overseas and the need to strengthen domestic skills.

The most debated measure in the budget is the introduction of a five per cent Tourism Services Tax on larger tourism operators.

The government said the levy will help finance aviation and tourism infrastructure needed to support the industry's long-term growth.

However, the Fiji Hotel and Tourism Association has warned that the additional tax comes at a time when operators are already facing rising labour costs, higher insurance premiums and increased prices for imported goods.

While the tourism sector remains internationally competitive, industry representatives have cautioned that additional costs could affect pricing as Pacific destinations compete for visitors.

Economists generally distinguish between borrowing for productive investment and borrowing to finance ongoing operating expenses, noting that infrastructure spending can strengthen future economic performance provided projects are carefully selected, efficiently implemented and generate measurable returns.

Business organisations have broadly welcomed the government's emphasis on infrastructure investment, policy stability and skills development, while continuing to call for prudent debt management and disciplined project execution to preserve investor confidence.

The ministry said balancing infrastructure investment with debt sustainability will remain one of the country's key economic policy challenges.

It added that maintaining access to development finance, strengthening public finances and delivering projects efficiently will be critical to sustaining confidence among international lenders, development partners, businesses and private investors.

Rather than pursuing dramatic fiscal changes, the government said the 2026-27 Budget seeks to build on Fiji's post-pandemic recovery through careful fiscal management, continued infrastructure investment and measures designed to support long-term economic growth.