The Asian Development Bank (ADB) has approved a US$9 million grant to support Tongan women in business ventures. The initiative aims to promote the growth of women-owned and women-led micro, small, and medium-sized enterprises, providing them with the resources and guidance needed to expand their operations. According to Aaron Batten, regional director of ADB’s Pacific subregional office, the project will unlock bank lending specifically for women entrepreneurs and support the development of inclusive financial products and tailored services.
Tonga’s small and climate-vulnerable economy presents limited and uneven opportunities for entrepreneurship, particularly for women. Although women constitute a significant share of the private sector, they remain largely excluded from formal financial services and specialized business support. Structural barriers, including rigid collateral requirements, restricted land ownership rights, and the absence of gender-responsive financial products, have constrained women’s access to credit. Previous government initiatives to address these gaps have often lacked targeted support, coordination, and integration with business development services, resulting in financial dependency rather than sustainable empowerment.
A 2024 report by the Pacific Private Sector Development Initiative (PSDI), an ADB technical assistance program funded by Australia and New Zealand, highlighted that while women’s representation in business leadership in the Pacific region surpassed global averages, disparities remained. In Tonga, craft and related trades were the most common occupations among women, while they were underrepresented in industries such as construction, transportation, and storage. The report also noted that official support for women workers, especially in the private sector, is limited, and gender gaps in labor force participation persist despite gradual improvements since 1990.
An informal business survey conducted in 2021 by PSDI in collaboration with Tonga’s Ministry of Trade and Economic Development examined 2,301 informal businesses across 1,519 households, with 56 per cent operated by women. The survey revealed that most businesses were launched with personal funding and minimal involvement of official institutions, and over 60 per cent of business owners were unaware of registration requirements. This underscores the need for targeted initiatives, such as the ADB grant, to provide women entrepreneurs with financial access, business development support, and pathways for long-term economic empowerment.
