Improving Vanuatu’s public finances and agricultural value chains

Context

Vanuatu's economy has shifted gradually from the primary sector to services. The latter now accounts for about two-thirds of economic activity (as measured by gross domestic product). Low agricultural productivity and limited agro-processing capacities partly explain why Vanuatu’s primary sector fails to meet increasing domestic demand for agricultural and agri-processed products. Nonetheless, agri-business manufacturing has significant potential for growth and could even contribute to Vanuatu’s exports in the future.

Promoting targeted agricultural value chains can provide lasting benefits that surpass domestic demand and boost exports. The European Union’s (EU) Vanatu Value Chain (VaVaC) Programme focuses on three value chains: coconut, cattle and fruits and vegetables.

Objective

Vanuatu’s agricultural value chains are becoming stronger and contribute to the country’s long-term economic development.

Approach

The overall VaVaC Programme is divided in two components:

1. Budget support for agriculture and trade, implemented by the Government of Vanuatu.
2. Technical assistance to enhance the government’s capabilities in implementing the budget support. Implemented by GIZ.

The technical assistance component supports the relevant ministries, coordination bodies and working groups involved in the implementation of VaVaC budget support. The project is split into four components:

• Component 1: Improve the institutional capabilities of the relevant national authorities of Vanuatu in agriculture and trade development.
• Component 2: Contribute to enhanced service delivery in the coconut, cattle and fruits & vegetables value chains.
• Component 3: Facilitate the successful implementation of Vanuatu's Public Finance Management Reform Road Map.
• Component 4: Ensure the successful management of the EU-financed budget support.

Last update: August 2023