SPBD is a network of microfinance organizations working in Fiji, Samoa, Tonga and the Solomon Islands dedicated to eradicating poverty by empowering women in poor rural villages with the opportunity to start, grow and maintain sustainable, income generating micro-enterprises.

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Vanuatu

What is the Need and Extent of Poverty in Vanuatu

The Republic of Vanuatu is ranked 134 out of 187 countries in the 2016 Human Development Index (HDI) and with a $2,800 USD GDP per capita, it is listed as one of the United Nations Least Developed Nations. Similarly, 65% of the population does not have access to electricity.

26 percent of the population lives in the urban centers of Port Vila (capital) and Luganville. Vanuatu’s population of just over 277,000 inhabits 65 of the 80 islands in the country’s archipelago.

SPBD Microfinance Ltd (Vanuatu)

SPBD Microfinance (Vanuatu) Ltd. has commenced its operation in April 2017. It is the fifth entity in the SPBD network of microfinance institutions in the South Pacific region following the success of SPBD Samoa (2000), SPBD Tonga (2009) and SPBD Fiji (2010) and SPBD Solomon Islands (2012).

About Vanuatu:

Vanuatu is an island country in the South Pacific Ocean made up of 80 islands that stretch to 1,300 kilometers (810 mi) and total area of 4,706 square miles. The capital, Port-Vila, is located on the island of Efate.

More than 80% of the country’s population is concentrated in rural areas. Vanuatu has perhaps the lowest formal-sector employment in the region. Formal sector employment is around 15%. In the rural economy, where about 70% of population find their livelihoods, only about 10% of the workforce is in formal employment. Most of the ni-Vanuatu living in rural areas are engaged in subsistence agriculture.

Vanuatu is undergoing social and economic change, but the great majority of the population still lives and works in rural areas and most households remain engaged in traditional networks of mutual obligation and support. These bonds extend across the rural/urban divide.It worth noting that only 20% of the GDP is produced in agriculture, mainly due to the lack of value added to the local produce.

There are three banks in Vanuatu: Australia New Zealand (ANZ), Bank South Pacific (BSP) and the National Bank of Vanuatu. ANZ is headquartered in Australia while BSP is headquartered in Papua New Guinea. Port Vila serves as the Vanuatu headquarters for all three banks.

Vanuatu is ranked low in the 2019 Human Development Index at 141 out of 189 countries. The index is a summary measure of the average achievement in key dimensions of human development: a long and healthy life, education, and a decent standard of living. South Pacific Business Development Microfinance (Vanuatu) Ltd. was established in 2016 and since then, has been making a huge contribution to Vanuatu’s development.

75% of the population of Vanuatu lives in rural areas; the economy is largely based on small-scale agriculture, which employs two thirds of the population. Other important sectors in the economy are tourism, fishing, and offshore financial services. Efate, the island on which SPBD operates in Vanuatu, was hit hard after the destructive Cyclone Pam in 2015; tourism was especially affected, and the island still struggles to return to its previous tourism level.

Several widespread problems affecting the ni-Vanuatu include a lack of access to reliable drinking water and obstacles to economic growth. This includes dependence on only a few commodity exports, far-away main markets, and potential destruction due to vulnerability to natural disasters. SPBD Vanuatu seeks to improve overall living conditions throughout the island by creating and strengthening small businesses in order to build a stronger, more sustainable economy.

Since 2017, SPBD Vanuatu has disbursed more than 11,000 loans, worth over US $6 million. In the coming years, we aim to grow our reach in Vanuatu to provide more women with economic opportunities.