Private sector reforms are leading to increases in business investment across the Pacific, including Tonga, according to the latest Pacific Private Sector Development Initiative (PSDI) progress report for the 2014-15 period.

The PSDI works with the Asian Development Bank’s (ADB) Pacific member countries to make it easier to invest or start businesses in the Pacific islands countries as well as supporting private sector involvement leading to economic growth in the region.

The Regional Director of the ADB’s Pacific Liaison and Coordination Office, Andrea Iffland, stated on 15 February that PSDI’s achievements and expansion of support outlined in the report shows this initiative is effective and is working for the Pacific.

“With continued commitment from Pacific governments and our partners, there is enormous potential to build on this work and develop private sectors geared to sustainable, inclusive growth,” she said.

The report also details how funding sources for Pacific businesses have improved because of PSDI’s financing growth activities making it easier to lend funds using moveable property as security in the Federated States of Micronesia, Palau, the Marshall Islands and three other countries.

During the reporting period, there has been an increase in requests for PSDI assistance with its competition program expanding into five countries with all five of PSDI’s core work areas to improve economic growth implemented in Fiji. In addition, four pilot projects to empower women in business, one of PSDI’s core work areas, were started in PNG, Solomon Islands and Tonga.

PSDI was launched in 2006 and is cofinanced by ADB and the governments of Australia and New Zealand.