The Asian Development Bank (ADB) and the Australian government have committed $12.85 million to the fifth phase of the Pacific Private Sector Development Initiative (PSDI), continuing efforts to improve the business and investment environment across the region.
The initiative will help governments in ADB’s 14 Pacific developing member countries modernize business, investment and financial sector regulations, strengthen institutions and expand access to finance for micro, small and medium-sized enterprises.
Since its launch in 2007, PSDI has supported more than 500 reforms, including improvements to business laws, online business registries, secured transactions frameworks and capital markets. It has also supported reforms to strengthen state-owned enterprises and increase women’s representation in senior executive and board positions.
ADB Pacific Department Regional Head for Private Sector Development Haroun Khawaja said the new funding would sustain efforts to modernize business regulations and strengthen institutions, digital systems and financing mechanisms for small enterprises and women entrepreneurs.
ADB also cited its long-standing partnership with Australia as central to the initiative’s work since 2007.
Pacific economies face high business costs, limited access to finance and small, geographically dispersed markets. Exposure to climate-related disasters and regulatory frameworks that have not kept pace with changing business needs also constrain investment and job creation.
PSDI Phase V will support reforms to business and financial regulations, strengthen business registries and state-owned enterprises, and develop financing approaches for smaller businesses.
The program will also promote women’s economic empowerment through improved data, systems and institutional support, while producing research and outreach materials to encourage reform.
New priorities include climate and disaster resilience, digital government, anti-money laundering and countering the financing of terrorism, and disability inclusion.
The latest phase is funded by $3 million from ADB’s Technical Assistance Special Fund and $9.85 million in Australian government cofinancing.
Across its four previous phases, PSDI received $76.2 million from Australia, $8.9 million from New Zealand and $11.1 million from ADB.
ADB is a multilateral development bank established in 1966 to support sustainable, inclusive and resilient growth across Asia and the Pacific. It is owned by 69 members, including 50 from the region.
