Ministry of Finance and Economic Management, Vanuatu

13/08/2026

Farmers with an Agriculture Business Permit wanting to import machinery to expand their farming activities will not pay the usual import duty.

The Deputy Prime Minister (DPM) and Minister of Finance, Johnny Koanapo, said that the government will introduce a new programme to remove import duties on machinery brought in by holders of the Agriculture Permit.

“I want to announce that in next year’s budget, the government will introduce a new programme to help our farmers by removing duties on any machinery imported by holders of the Agriculture Business Permit.

The machinery will be 100% duty-free,” he said when delivering his speech during the recent launch of the TAFEA Economic Development Plan at Lenakel on Tanna.

He said the initiative is expected to be officially announced in Parliament.

The Deputy PM encouraged farmers in Tanna and from across TAFEA Province to apply for the VT927M Banking Facility, which provides credit at a 5% interest rate to purchase machinery and expand production.

He told farmers that they need to move from subsistence farming to commercial agriculture to help grow the country’s economy.

“Our country’s economy depends on agriculture,” he said.

During his visit to Tanna, the Deputy PM joined the Minister of Trade and Commerce, Robson Iavro, to mark the groundbreaking of a national packhouse on Tanna.

The National Packhouse Programme is a key part of the TAFEA Province’s Economic Development Plan 2026-2030. The project will build on progress made at the Santo National Packhouse, which is moving into commercial operations and is expected to facilitate its second taro shipment.

Deputy PM Koanapo thanked the people for their contribution to the export of five containers of taro last year. He said another packhouse is needed on Tanna to increase agricultural production and exports.

The packhouse is not being built for political reasons, but the location provides farmers with easier access to the ports, he said.

The Deputy PM also thanked the Nikoletan Council of Chiefs for ensuring land is available for the development.

He also called on landowners and communities to open up land for development to help grow the provincial economy.

12/08/2026

A five-year plan to strengthen TAFEA’s economy, improve livelihoods and create new opportunities has been launched, with the provincial government seeking a more self-reliant future for the province.

Deputy Prime Minister and Minister of Finance, Johnny Koanapo, launched the document on behalf of the Government during a ceremony at Lenakel. The event brought together community members, government agencies, development partners and private sector representatives from across the province.

Deputy PM Koanapo described the plan as a clear roadmap for building a stronger and more self-reliant provincial economy.
He commended the TAFEA Provincial Government Council (TPGC) for the quality of the document and reaffirmed the Government's commitment to partnering with provinces to drive inclusive and sustainable growth.

“The TAFEA Economic Sector Development Plan (TESDP) 2026–2030 belongs to the people of TAFEA. It reflects their aspirations, priorities and vision for the future. The national government stands firmly behind this plan, and we are committed to working hand in hand with the provincial government to turn this framework into real opportunities, real livelihoods and real growth for every community across the province,” he said.
“I commend the outstanding work of the TPGC for producing a comprehensive, simple and very precise document that clearly lays out the economic plan of TAFEA Province. It will help guide the Government to take a more strategic investment approach and direction in the sectors the Province has identified as delivering economic benefit to TAFEA and to Vanuatu.”

The TESDP 2026–2030 is the outcome of extensive consultations undertaken across TAFEA. It establishes a strategic framework for economic growth, sustainable development and improved livelihoods, and is aligned with the National Sustainable Development Plan.
President of TPGC, Andrew Iawak, welcomed the Deputy PM's presence as a demonstration of the Government’s commitment to provincial development and a strengthening of the partnership between national and provincial institutions.

“For TAFEA, this is a new beginning, a new chapter in the economic development of our province. The idea behind the TAFEA Rural Economic Development Initiative was first written down some 21 years ago, and from 2024 to now we have revisited it, consulted our communities and shaped it into this document,” he said.

President Iawak acknowledged the support of development partners in bringing the Plan to fruition, including the Government of Australia through the Governance for Growth program and the Vanuatu Skills Partnership, and the Ministry of Internal Affairs through the Department of Local Authorities, whose technical and financial assistance helped guide the Plan’s development and its path to implementation.

As part of the event, the Minister of Infrastructure and Public Utilities, Xavier Emmanuel Harry, participated in the official handover of the TAFEA Provincial Patrol Boat, another investment in the province’s future development that will strengthen transport, connectivity and service delivery across the southern province.

09/08/2026

01/08/2026

Vanuatu's Half-Year Economic & Fiscal Update 2026 is out.

The numbers for January–June 2026 tell a clear story: our economy is stable and growing.

👉 Swipe through for the full picture.

Prepared by the Ministry of Finance & Economic Management under the Public Finance & Economic Management Act.

02/07/2026

The rollout of the fuel subsidies continues to progress well, with subsidies for buses, taxis, and other public land transport moving ahead smoothly.

This week marked the first rollout of the shipping fuel subsidy, handed over by the Ministry of Finance and Economic Management to the Vanuatu Maritime Safety Authority. Air Taxi also received its fuel subsidy payment this week, marking the second payment in the aviation sector.

29/06/2026

22/06/2026

The Ministry of Finance and Economic Management (MFEM) has rolled out its first Fuel Subsidy Payment on aviation, aimed at supporting the sustainability of air services across Vanuatu.

The first payment under this Fuel Subsidy was successfully disbursed last week to Air Vanuatu, marking an important step in the Government's continued commitment to strengthening the aviation sector and ensuring reliable air connectivity for the people of Vanuatu.

Further updates on the subsidy program will be shared in due course.

17/06/2026

VFSC sets record with dividend payment to gov’t |

The Vanuatu Financial Services Commission (VFSC) has recently paid VT140,571,690 as its final dividend for the 2025 financial year to the government.

The payment covers the period from November to December 2025, while VT436,616,766 collected from January to October was paid to the government in November last year. This brings VFSC’s total contribution to VT577,188,446, the highest payment.

Deputy Prime Minister (DPM) and Minister of Finance Johnny Koanapo received the payment cheque from the Chairman of the VFSC Board, Daniel Yahwa, and VFSC Commissioner Branan Karae during a ceremony.

Koanapo commended the VFSC for its outstanding performance and strong contribution to the government fiscal basket at a time when the country continues to recover from the impacts of the December 2024 earthquake.

“This is a significant achievement and a clear demonstration that with the right leadership, focus, and commitment, greater results are achievable,” he said in a statement.

The DPM said this performance places VFSC among the top-performing state-owned entities of the government.

Koanapo said that the VT577 million payment substantially exceeded the Commission’s projected target of approximately VT500 million and represents the continuation of a strong upward trend in VFSC’s contributions over the last five years.

The government has made it clear that it expects all state-owned enterprises to pay annual returns. Some, like Ifira Ports Development Services and VFSC, have been making payments, while others have failed to do so.

The DPM also acknowledged VFSC’s forward strategic planning and strong contributions to the country’s compliance with domestic and international regulatory standards, and supports the Commission’s ongoing efforts in the development of new financial products, namely digital financial platforms and other key areas in line with government priority focus.

17/06/2026

The Deputy Prime Minister and Minister Finance and Economic Management, Honourable Johnny Koanapo Rasou, visited the Vanuatu Consul General’s Office in Sydney, where he met with Consul General Mr. Donald Pelam to discuss enhancing consular services for ni-Vanuatu citizens and expanding trade facilitation for Vanuatu-made products in the Australian market.

The official visit underscored the Vanuatu government’s commitment to strengthening its diplomatic and commercial presence in Australia’s largest economic hub. During the meeting, DPM Koanapo acknowledged the Consulate’s critical role in supporting the growing ni-Vanuatu community in New South Wales, including seasonal workers under the Pacific Australia Labour Mobility (PALM) scheme, students, and residents.

“Our citizens in Australia must feel connected to Port Vila. Consular protection, welfare support, and responsive visa and documentation services are not optional, they are a duty,” said DPM Koanapo. “Mr. Pelam and his team are on the front line, and this visit confirms our full support for their work.”

The discussions also focused on trade facilitation and the opportunity for opening up investment opportunities for Vanuatu Made commodities. With Australia remaining one of Vanuatu’s most significant trading partners, both officials explored practical pathways to increase the volume and value of Vanuatu-made goods, including kava, agricultural products, beef, cocoa, and handicrafts, into Australian retail and wholesale channels.

“We are not simply exporting raw materials. We are building ‘Made in Vanuatu’ as a mark of quality, sustainability, and provenance,” said Mr. Donald Pelam, Vanuatu Consul General in Sydney.

“The Deputy Prime Minister’s visit signals a clear directive: remove bottlenecks, support ni-Vanuatu exporters, and open more doors in the Australian market.”

16/06/2026

Easing the Pressure: VT192 Million Fuel Subsidy for Electricity |

Good news for households and businesses! The Ministry of Finance and Economic Management, working with the Ministry of Climate Change Adaptation and the Utilities Regulatory Authority, has rolled out a VT192 million subsidy to help cushion rising electricity costs.

Approved under Council of Ministers Decision No. 18 of 2026, this support responds to the impact of global fuel price increases on electricity generation across Vanuatu. The subsidy applies to all regulated electricity providers UNELCO Engie, VUI Ltd, and VANPAWA and will help keep tariffs more affordable as fuel costs rise.

The subsidy takes effect this month, with its impact reflected in the July 2026 billing period, and will continue until the allocated funding is fully utilised.

The Government remains committed to keeping electricity services affordable and accessible for all Ni-Vanuatu.