Vanuatu’s economy is seeing fresh signs of entrepreneurial energy, with post-pandemic startups beginning to drive new growth in agriculture, renewable energy, and services. A feature in Vanuatu Business Review profiled how small but dynamic enterprises are emerging from the challenges of the COVID-19 period and diversifying beyond the country’s traditional reliance on tourism.
One highlighted venture has been developing innovative agricultural processing techniques to add value to local crops. By working directly with farmers, the startup is creating new export products that reach markets in Australia and New Zealand. Another is focusing on renewable energy, installing solar micro-grids that provide rural communities with reliable, climate-resilient power.
The revival of entrepreneurial activity reflects a broader trend in the Pacific, where governments and development partners are encouraging micro-, small- and medium-sized enterprises (MSMEs) as engines of job creation. In Vanuatu, the government has signalled support by easing licensing requirements and offering training initiatives. Donors such as the Asian Development Bank and UNDP have stepped in with financing and technical assistance to strengthen small business ecosystems.
Analysts say Vanuatu’s startup environment remains fragile, constrained by limited access to finance, high logistics costs, and a narrow domestic market. However, the resilience shown by young entrepreneurs is changing perceptions about the possibilities for local business. The willingness of returning graduates to invest skills acquired abroad into new enterprises has also helped.
Observers suggest that if this momentum is sustained, startups could play a critical role in diversifying the economy away from heavy dependence on tourism, which was badly hit by border closures during COVID-19. Their contribution could also align with Vanuatu’s 2050 development strategy, which prioritises climate resilience, inclusive growth, and local innovation.
While challenges remain, the new wave of startups underscores the potential for small island economies to nurture innovation on their own terms and for global partners to support scalable, home-grown solutions.
