The Asian Development Bank (ADB) and the Australian Government have committed US$12.85 million to a new phase of the Pacific Private Sector Development Initiative (PSDI), extending a nearly two-decade partnership aimed at improving business conditions, encouraging investment and expanding access to finance across Pacific Island economies.
The fifth phase of the program will work with governments in ADB’s 14 Pacific developing member countries to modernise business regulations, strengthen financial systems and improve the institutions responsible for supporting private-sector activity.
Launched in 2007, PSDI has supported more than 500 reforms covering business legislation, company registration, financial markets and the governance of state-owned enterprises.
The new funding comprises US$3 million from ADB’s Technical Assistance Special Fund and US$9.85 million from the Australian Government.
ADB Pacific Department Regional Head for Private Sector Development Haroun Khawaja said the commitment would allow the initiative to continue modernising the regulatory frameworks underpinning business activity.
He said the emphasis would be on ensuring that reforms produced practical results through stronger institutions, digital systems that simplify business processes and financing mechanisms reaching smaller enterprises and women entrepreneurs.
Pacific businesses face persistent challenges arising from geographically dispersed markets, high operating costs, limited access to commercial finance and exposure to natural disasters.
The latest program will seek to address these constraints through improvements to investment and financial legislation, business registries and regulatory institutions.
Particular attention will be given to micro, small and medium-sized enterprises, including the development of financing arrangements that make capital more accessible.
Women’s economic participation remains a priority, building on earlier initiatives that supported women entrepreneurs and increased opportunities for women to occupy senior management and board positions.
The program will also expand its focus on digital government, climate resilience, anti-money laundering measures, counter-terrorism financing safeguards and disability inclusion.
State-owned enterprises will remain an important area of reform, reflecting their central role in providing utilities, transport and other essential services.
Across the previous four phases, Australia contributed US$76.2 million, New Zealand US$8.9 million and ADB US$11.1 million.
The renewed commitment is intended to help Pacific governments build more competitive business environments, attract investment and create sustainable employment opportunities.
