ADB Approves $10M Grant to Boost Public Sector Reform and Inclusion in Kiribati

This initiative reinforces Kiribati’s long-term development vision, supporting governance modernization, women’s empowerment, and ocean protection—critical priorities for one of the world’s most climate-vulnerable island states.

The Asian Development Bank (ADB) has approved a $10 million policy-based grant to support the Government of Kiribati in strengthening public financial management, advancing gender equity, and enhancing environmental stewardship.

The grant—part of the Sustainable and Inclusive Economic Recovery Program (Subprogram 2)—builds on previous reform milestones and aims to support inclusive, resilient, and sustainable growth in the Pacific Island nation.

“These policy reforms promote a more vibrant private sector capable of delivering jobs and growth, while improving women’s workforce participation as a catalyst for economic progress,” said Aaron Batten, Regional Director of ADB’s Pacific Subregional Office.

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Key Reform Priorities Under Subprogram 2

The latest phase of reforms focuses on three transformative areas:

1. Strengthening Public Sector Management

• Modernization of public financial systems and oversight.

• Broadened tax framework to improve revenue stability.

• Increased transparency in spending through improved public reporting.

• Strengthened governance of state-owned enterprises to ensure accountability and efficiency.

2. Empowering Women and Advancing Social Protection

One of the program’s cornerstone achievements is the establishment of a SafeNet database to track cases of gender-based violence (GBV). This tool will help government and social service providers design targeted support programs, including:

• Job skills and vocational training for GBV survivors

• Financial literacy programs

• Initiatives promoting women’s entry into the workforce and entrepreneurial ecosystem

The program further supports the modernization of digital frameworks, enabling safer financial transactions, digital identity rollout, and better access to online banking—advancing women’s financial inclusion in a traditionally cash-based economy.

3. Protecting Ocean and Fisheries Resources

Kiribati’s new fisheries and ocean resource management policy ensures that its globally significant marine resources—representing one of the world’s largest exclusive economic zones—are:

• Managed sustainably

• Protected through stronger environmental enforcement

• Leveraged responsibly for long-term economic benefit

This policy supports biodiversity, the livelihoods of coastal communities, and long-term climate resilience.

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Strategic Financing for Vulnerable Economies

The grant is funded under ADB’s Asian Development Fund (ADF)—designed for the poorest and most climate-vulnerable economies—alongside parallel support from:

• The European Union

• The Governments of Australia and New Zealand

• The World Bank

The ADF plays a vital role in supporting fragile states across Asia and the Pacific. Between 2021 and 2024, ADF support helped 384,000 people rise out of poverty and generated nearly 500,000 jobs.

Unlike traditional infrastructure financing, policy-based grants are transferred directly into national budgets once agreed reforms are completed—helping governments close fiscal gaps and implement structural reforms without debt pressure.

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This initiative reinforces Kiribati’s long-term development vision, supporting governance modernization, women’s empowerment, and ocean protection—critical priorities for one of the world’s most climate-vulnerable island states.