The Government of Vanuatu and the Asian Development Bank (ADB) have signed a Transaction Advisory Services Agreement to advance the proposed agro-processing project on Espiritu Santo, marking an important step towards strengthening agricultural value addition, investment and economic development in Vanuatu.
The signing ceremony was attended by the Minister of Trade and Commerce, Hon. Robson Iavro, and ADB Regional Director for the Pacific Liaison and Coordination Office, Ms. Jyotsana Varma, alongside government representatives and other stakeholders.
In his remarks, Minister Iavro welcomed ADB’s continued partnership with Vanuatu, acknowledging its longstanding contribution to the country’s development and highlighting the importance of the transaction advisory support in progressing this strategic project.
The Minister emphasized that the Ministry of Trade and Commerce is committed to supporting private sector enterprises and improving market access for Ni-Vanuatu communities and businesses. He noted that private sector participation can bring specialised expertise, new technologies, improved management practices and innovative business models, while effective government oversight and a clear development vision remain essential to creating an enabling business environment.
The agro-processing initiative forms part of the Government’s Economic Development Zone initiatives and its broader Economic Corridor Policy, which seek to promote coordinated development across connectivity, trade, investment, logistics, urban development and private sector participation.
Minister Iavro highlighted the importance of agriculture to Vanuatu’s economy and the livelihoods of its people. The proposed public-private partnership (PPP) project aims to increase the value of agricultural, livestock and fisheries products through local processing and value addition.
By creating opportunities for investment, employment and market expansion, the initiative is expected to contribute to stronger rural incomes, greater economic resilience and a more productive, commercially driven agricultural sector.
“Today’s signing is an important step towards implementing the Government’s Economic Corridor Policy and supporting Santo’s development as an economic hub for Vanuatu,” Minister Iavro said.
ADB Regional Director for the Pacific Liaison and Coordination Office, Ms. Jyotsana Varma, also welcomed the partnership and highlighted its potential to support Vanuatu’s economic development.
“ADB is pleased to partner with the Government of Vanuatu in advancing this important agro-processing initiative. By supporting local processing and value addition, we aim to help unlock investment opportunities, strengthen agricultural value chains and create new opportunities for Ni-Vanuatu communities and businesses. This partnership reflects our shared commitment to sustainable and inclusive economic growth,” Ms. Varma said.
The Minister also outlined other priority agro-processing initiatives, including a coconut processing facility in Santo, a cocoa processing facility in Malekula and a coffee processing facility in Tanna.
To support this broader development agenda, a Sanma Province Economic Summit is planned for the first quarter of 2027. The summit is expected to contribute to the development of a Sanma Province Economic Development Plan and identify sector programmes for future support.
Through the Transaction Advisory Services Agreement, the Government will draw on ADB’s expertise and experience while strengthening its own institutional capacity to progress the project.
The partnership reflects the Government’s commitment to promoting investment, expanding economic opportunities and building a foundation for sustainable development that will benefit present and future generations of Ni-Vanuatu.