World Bank Backs Tonga’s Push for Better Jobs and Business Growth With $15M Grant

More than one in four young Tongans are outside employment, education or training, highlighting the limited opportunities available to people preparing to build a working life.

Tonga is set to receive a US$15 million grant to support reforms expected to generate hundreds of additional, better-paying jobs and open more opportunities for people and businesses across the country. Approved by the World Bank Group, the support comes through the International Development Association (IDA), the World Bank's fund for low-income countries, and will help Tonga make better use of its public, human and natural resources to strengthen private sector-led growth.

Giving young Tongans more routes into work

More than one in four young Tongans are outside employment, education or training, highlighting the limited opportunities available to people preparing to build a working life. The Tonga First Growth and Jobs Development Policy Financing will support stronger workforce skills and apprenticeships as part of a broader effort to raise productivity and help more people participate in the economy. These reforms place practical preparation for employment alongside improvements to the conditions businesses need to invest, expand and create jobs.

The operation is the first in a two-part program supporting changes across skills development, financial services, the business environment and ocean management. Its employment goals extend beyond increasing the number of available jobs to encouraging better-paying work, with private sector development expected to play a central role. Strengthening the economy's ability to cope with future shocks forms another part of the program, reflecting the need for opportunities that can endure difficult economic conditions and disaster-related disruption.

Helping businesses grow and families access support

Expanded access to digital payments and financial services is a key part of the reform package, supporting financial inclusion alongside measures to improve conditions for private investment and business growth. For Tonga, these changes form part of the effort to create an economy in which more people can participate and businesses have stronger foundations for expansion. The package connects improvements in financial access with investment and workforce reforms, addressing several constraints on economic opportunity through the same program.

Tongan Finance Minister Hon. V. Sivoki Lavemaau described the initiative as a way to help people create jobs, support businesses and strengthen the resilience of households and the wider economy. He highlighted stronger assistance for vulnerable families when support is most needed, placing household security within the program's broader growth agenda. His comments also emphasized the responsibility to protect Tonga's ocean resources so they can continue supporting livelihoods and future generations.

Protecting ocean resources that sustain livelihoods

New approaches to marine spatial planning and ocean management will help Tonga balance conservation with livelihoods and economic development, supporting the sustainable growth of fisheries, tourism and other ocean-based industries. These measures recognize that the country's natural resources are central to its economic prospects and need careful management as opportunities develop. Protecting marine resources forms part of the same reform effort as creating jobs and encouraging investment, linking future economic activity with the health of the ocean.

Tatiana A. Proskuryakova, World Bank Division Director for the South and North Pacific, acknowledged the resilience Tongans have shown through significant economic and disaster-related challenges. She identified private sector development, stronger skills, financial inclusion and sustainable resource management as areas where reforms can expand opportunities and support more resilient growth. The IDA grant backs this first stage of policy changes, with the expected employment gains forming part of a wider effort to strengthen Tonga's economy and broaden access to its opportunities.