Australia has announced additional funding of Vt1.145 billion to support Vanuatu’s economic recovery from the Covid-19 pandemic.
The new package includes Vt 730 million to subsidise tuition, exam and boarding fees for senior secondary school students, and subsidise boarding fees for secondary students.
According to the Australian High Commission, this will help to keep students in school and take pressure off family budgets.
High Commissioner, Sarah deZoeten announced the assistance to Prime Minister Bob Loughman Weibur in Tanna yesterday.
The recovery package also includes Vt 315.4 million through the UnBlocked Cash programme for grants to vulnerable households - helping more than 20,000 people to buy essential goods like food, agricultural supplies and hardware; and supporting local businesses.
Australia will provide Vt 99 million to support the Vanuatu Tourism Office to develop and implement a new tourism recovery and marketing plan to ensure Vanuatu is well placed to welcome tourists back when the time is right.
Australia has committed more than Vt 5.7 billion to support the Government of Vanuatu’s response to Covid-19 and Tropical Cyclone Harold under Vanuatu’s National Recovery Strategy 2020-23.
According to the Pacific Business Monitor Report 2020 released by Pacific Trade Investment, only 15% of businesses were fully operational especially from November to December 2020 compared to a third in previous months.
The negative impact on business has remained higher for businesses in Vanuatu across 2020 compared to the rest of the Pacific Islands. November to December 2020 saw those experiencing a ‘very negative’ impact on their business jump to 85%, the highest level since tracking began, the report said.
“By the end of 2020, the extent of challenges faced by businesses in Vanuatu slightly declined as businesses adapted to the conditions. However, the increasing cost of products/raw materials has become increasingly challenging for more businesses in Vanuatu.”
The Government allocated Vt4.2 billion in fiscal stimulus, which is equivalent to around 5.5 per cent of annual gross domestic product (GDP).
The economic response is helping to keep people employed, address short-term cash flow challenges and set up medium and longer term recovery efforts.
Photo supplied Australia High Commission