The Government and the private sector are discussing additional measures that can be implemented quickly to support businesses in Vanuatu during the ongoing Covid-19 pandemic.
Government ministries and the Vanuatu Chamber of Commerce and Industry are working together to develop the support measures.
The measures will build on the Economic Stabilization Payment (ESP), the Small and Medium Enterprises grant (SME), school fee subsidy, commodities subsidy and shipping subsidy, which were implemented in 2020.
So far over VT 1.5 billion worth of payment support has been provided.
Once the recommendations have been finalized and endorsed by the Council of Ministers, support measures will be rolled out.
Some of the measures are:
1. Suspension of school fees;
2. Suspension of business licence fees and work permit fees;
3. Suspension of road tax;
4. Introduction of a subsidy to support businesses’ transportation costs of exports; and
5. Contracting of third parties to support the development of business ideas and business plans, as an accompaniment to the Government’s subsidised credit scheme
The Government will also consider other support measures in addition to the list above.
The list of interventions will be finalised and published as soon as possible.
The Government expects that support measures will apply until the end of 2021.
In addition, MFEM has started working with other Government agencies to clear arrears owed to suppliers.
This will enable the prompt payment of Government agencies’ outstanding bills to businesses.
The Government said it recognises the need to move quickly to alleviate hardship and support the economy through 2021, ahead of expected border re-openings following the rollout of vaccines in Vanuatu and neighbouring countries.
The Government said it will also seek to ensure fairness by approving measures that can be expected to reach those consumers and businesses who are most in need.
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