Financial Crime World

RESERVE BANK OF VANUATU LAUNCHES FIRST-EVER NATIONWIDE SURVEY ON MSMEs

Introduction

The Reserve Bank of Vanuatu (RBV) has launched a comprehensive nationwide survey on Micro, Small and Medium-Sized Enterprises (MSMEs), marking a significant milestone in the country’s financial inclusion agenda. The survey aims to gather vital data on the usage of financial services among MSMEs in urban and rural areas.

Background

The RBV, with funding from the Alliance for Financial Inclusion (AFI), conducted the nationwide survey to inform policy decisions and enhance evidence-based solutions to address gaps in financial inclusion in Vanuatu. Despite the challenges posed by a lack of past surveys on a national scale, the RBV’s survey team successfully overcame these hurdles to provide valuable insights into the profiles of MSMEs and their gender characteristics in Vanuatu.

Key Findings

  • A high percentage of businesses access informal financing sources for startup funding, despite the sector remaining largely unsupervised in Vanuatu.
  • The participation of women and youth in total business ownership is lower than among men. Women own around 20% of businesses, falling short of the Maya Declaration’s target of 30%.
  • Access to finance for business financing was identified as a major problem in Vanuatu, attributed to:
    • Lack of infrastructure
    • Inefficient government service delivery
    • Competition from cheap imported products and services
    • Small market size
    • Limited support services for business development

Response from the Reserve Bank Governor

“We are proud to have overcome the challenges and present this report, which will serve as input for formulating our medium- to long-term policies on SMEs,” said Reserve Bank Governor Simeon Athy. “We will consult with the public to incorporate their views in our future policies and enhance evidence-based policy solutions.”

Acknowledgments

The RBV would like to thank AFI for providing grant funding that enabled the survey’s successful conduct, as well as the survey Technical Committee, which was responsible for every aspect of the survey. The Bank also acknowledges the contributions of its staff and directors.

“We are grateful to all who welcomed our MSME Survey team wholeheartedly and participated in making this survey a success,” said Governor Athy.

Future Plans

The RBV will continue to consult with stakeholders to incorporate their views into future policies, ensuring that MSMEs have access to the financial services they need to thrive.