A one million pa'anga grant fund for tourism and manufacturing business development was launched by the Tonga government in Neiafu, Vava‘u on 20 September, and again in Nuku‘alofa on 23 September 2013.

The Minister for Commerce, Tourism and Labour Hon. Viliami Latu was joined by the Minister for Finance and National Planning, Hon. Lisiate ‘Akolo to launch the new grant scheme.

Hon. Latu said that that the fund would assist local micro to small businesses and income generating groups to be successful and sustainable, particularly those that did not have access to loans from commercial banks.

“Those banks are not in businesses in Tonga to attend to the needs of our local small and micro businesses, youth groups, women’s groups, and communities as they cannot meet the collateral requirements of the banks.”

He said the lack of access to finance by these businesses had convinced Government of the need to provide this grant assistance to those businesses most in need.

Under the grant assistance, T$500,000 is allocated to the tourism sector and T$500,000 for the manufacturing sector, where T$250,000 is for the handicraft industry. A grant leaflet, application form and contract are available both in Tongan and English languages.

In a statement the Ministry of Commerce, Tourism and Labour together with the Ministry of Finance and National Planning said that they would jointly manage and monitor the consistency of the grants.

The Minister for Finance and National Planning Hon. Lisiate ‘Akolo emphasized that the grant assistance was “to ease access to finance with the aim to protect and empower the poorest sectors of the population such as women’s groups, and it offers them opportunities to make sound business decisions.”

Local businesses will be accorded priority, he said.

Applications for the grant scheme are now open and, the grant leaflet, application form and related documents are now available online and can be downloaded from the Ministry of Commerce, Tourism and Labour website.