Tonga Business Accelerator Pilot Project ^Featured

The project is one of the first for MDF Pacific Regional Expansion since it extended its footprint to Tonga, Samoa, and Vanuatu this year.

The project assisted 18 micro, small and medium businesses in sectors such as baking, food processing, fabric printing and furniture production to reset, recover and rebuild from the multiple impacts of the COVID-19 pandemic and the Hunga-Tonga-Hunga-Ha’apai volcanic eruption in January this year.

“According to a World Bank Disaster Assessment Report, the volcanic eruption contracted our GDP by 18 percent and costing us about TOP $208 million. Any assistance we can mobilize to help our private sector recover is of top priority because it contributes to Tonga’s economic recovery,” Tonga’s Minister of Trade and Economic Development, Hon. Dr. Viliami Uasike Latu, said. “Significant portions of our private sector are in the small and medium business categories, and were heavily affected by the impacts of the volcanic eruption and COVID-19 pandemic.”

With the assistance of an internationally experienced business coach, Steve Cordeiro, the Ministry of Trade and Economic Development supported by the Market Development Facility Pacific Regional and the Pacific Labour Facility, mobilized a team of local business coaches to develop and implement a business mentoring program for the participants. Representatives of the 18 businesses received training in business modelling, financial management, marketing and human resources.

All participants now have a Business Recovery Plan, and the basic information and skills to help them recover and grow their operations.

“We are keen to bring our expertise and knowledge to help Tongan businesses recover and grow following the economic shocks to the country,” MDF Regional Director (Pacific) Nicholas Wolf said.

“We are also committed to bringing market-based solutions to increase economic participation in Tonga and the Pacific to improve livelihoods and reduce poverty.”

The Pacific Labour Facility Quality Learning and Performance Coordinator, Pauline Fatongia said that despite the economic shocks, opportunities for labour mobility continues to grow and presented a unique development opportunity for Tonga. “It is important that we leverage this development potential to enhance its positive impacts on social and economic development of our country and for our people,” Ms Fatongia said.

“Therefore, reintegration is an important area in Labour Mobility in Tonga. With the right management of reintegration in Tonga, the country is able to take the development gains from Labour Mobility opportunities to facilitate skills transfer and investments into the local and private sector by workers when they return. Workers who choose an entrepreneurship option and are committed to business investments can be supported by enrolling in the Business Accelerator programme.”

Both MDF Pacific Regional and PLF will continue to collaborate with the Ministry of Trade and Economic Development in implementing future iterations of the business accelerator program.