The Asian Development Bank (ADB) has approved a $9 million grant to expand credit access and create business opportunities for women entrepreneurs in Tonga. The initiative aims to boost the growth of women-owned and women-led micro, small, and medium-sized enterprises (MSMEs) by providing targeted financial and business support.
The Women Entrepreneurs Leveraging Innovative Finance in Tonga Project will develop inclusive financial products, tailored support services, and policies that advance private sector development in the country. According to Aaron Batten, Regional Director of ADB’s Pacific Subregional Office, this marks ADB’s first finance sector initiative dedicated specifically to women entrepreneurs in Tonga and is designed to unlock bank lending to help them grow their businesses.
Women entrepreneurs in Tonga face significant barriers, including limited access to finance due to inadequate collateral—often linked to land ownership restrictions—high levels of business informality, and a lack of business development services. The project addresses these challenges by establishing Tonga’s first risk-sharing facility to ease collateral constraints through partial credit guarantees, creating an enablement fund to improve the bankability of informal MSMEs, delivering tailored business development services via a business advisory hub, and enhancing women’s financial, digital, and entrepreneurial skills.
The grant is funded through ADB’s Asian Development Fund, which supports the poorest and most vulnerable countries in Asia and the Pacific. Between 2021 and 2024, the fund helped 384,000 people escape poverty and generated approximately 500,000 jobs.
Founded in 1966, ADB is a leading multilateral development bank promoting inclusive, resilient, and sustainable growth across Asia and the Pacific. Owned by 69 members, including 50 from the region, ADB collaborates with governments and partners to address complex development challenges, leverage innovative financial tools, build quality infrastructure, and safeguard the environment.
