UNCDF in the Pacific

Cook Islands

Catalysing digital and financial inclusion for a more resilient economy

With support from the Government of New Zealand, UNCDF is advancing digital and financial inclusion to foster a more inclusive and resilient economy. In 2024, UNCDF led the country’s first National Digital and Financial Literacy Survey to inform service design and targeted upskilling. An analysis of policies and regulations provided a roadmap for digital economy reform. UNCDF is also supporting the digitization of government-to-person and person-to-government payments, improving transparency and efficiency. Capacity-building aligns public and private actors to reinforce institutional readiness for an inclusive digital future.

Fiji

Enhancing financial preparedness for climate resilience 

With support from Australia, New Zealand, Luxembourg, and the India-UN Partnership Fund, UNCDF has helped more than 32,000 households access parametric insurance since 2021. Among policyholders, 31% are women, 6% are social welfare beneficiaries, and 3% are persons with disabilities. Around $200,000 in payouts have supported rapid recovery after climate shocks. UNCDF also linked parametric insurance to Anticipatory Action protocols piloted in twelve climate-vulnerable communities.

Accelerating inclusive digital transformation

With support from the European Union, Australia, and New Zealand, UNCDF is helping digitalize core government services, including police clearance and teacher registration, benefitting more than 2,500 people between 2024 and 2025. It is also integrating digital and financial literacy into Fiji’s school curriculum, reaching an estimated 33,000 students. These efforts align with Fiji’s National Digital Strategy to ensure that no one is left behind.

Driving sustainable blue economy investments 

UNCDF is unlocking Fiji’s ocean-based economic potential by supporting sustainable blue economy investments that protect marine ecosystems and build coastal resilience. 

Through strategic partnerships and blended finance approaches, UNCDF has helped design and advance transformative projects such as Locally Managed Marine Areas (LMMAs) and resilient infrastructure, including sustainable landfill solutions. These initiatives are building investment pipelines that safeguard coral reefs while catalysing jobs, inclusive growth, and nature-based solutions for climate adaptation. 

Financing inclusive growth and climate resilience 

In 2024, UNCDF launched the Sustainable Pacific Blue Circle Fund to promote inclusive economic development and climate resilience in Fiji and across the Pacific region. With initial capital of $8.9 million from the European Union, the Fund provides investment grants and technical assistance to help small and medium-sized enterprises (SMEs) scale sustainably. 

The initiative focuses on improving the enabling environment, strengthening institutional capacity, and mobilizing private sector financing to support green and inclusive growth. It aims to unlock an additional $20 million in blended finance and impact capital, while fostering job creation for youth and women and contributing to a net-zero pathway. 

Federated States of Micronesia

Laying the foundations for an inclusive digital economy 

With support from the European Union, the Government of Australia, and the Government of New Zealand, UNCDF expanded its work to the Federated States of Micronesia (FSM) in late 2024. 

UNCDF is currently supporting the College of Micronesia (CoM) in strengthening the entrepreneurial ecosystem in the Federated States of Micronesia. In response to CoM’s request, UNCDF is helping develop a comprehensive needs assessment to identify the key challenges faced by MSMEs and start-ups—particularly around access to finance, the enabling environment for entrepreneurship, and levels of digital and financial literacy. The findings from this assessment will directly inform future improvements to CoM’s Center of Entrepreneurship, including refining and enhancing its training curriculum to better serve emerging entrepreneurs across FSM.

Kiribati

Pioneering climate risk insurance to strengthen resilience 

In partnership with the Kiribati Insurance Corporation, UNCDF has enabled the country’s first parametric microinsurance product for drought-related climate risks. More than $200,000 in performance-based grants supported product design, capacity building, and outreach. Tailored to local risk patterns and affordability, the index-based insurance aligns with national adaptation priorities.

Building an inclusive digital economy 

With support from the European Union and the Government of Australia, UNCDF is advancing financial and digital inclusion in Kiribati by supporting the transition from a cash-based to a digitally empowered economy. 

In partnership with the Ministry of Women, Youth, and Social Affairs, UNCDF is digitizing social welfare payments through both bank and mobile wallet channels, enhancing access and reliability for low-income and remote households. Parallel efforts include establishing a national credit union to support MSMEs and integrating digital financial literacy into vocational education through the Kiribati Institute of Technology. 

At the policy level, UNCDF is supporting the Ministry of Finance and Economic Development in developing a gender-inclusive National Financial Inclusion Strategy. With the Digital Transformation Office, UNCDF has also contributed to the enactment and implementation of the 2023 Digital Government Act, laying the legislative foundation for a more efficient, transparent, and inclusive public service delivery system. 

These integrated interventions ensure that digital innovation translates into meaningful opportunities for all, especially women, youth, and rural communities. 

Marshall Islands

Laying the groundwork for a digital and inclusive economy 

With support from the European Union, the Government of Australia, and the Government of New Zealand, UNCDF began supporting the Republic of the Marshall Islands in 2024 through work on the National Financial Inclusion Strategy and consumer protection.

In collaboration with national stakeholders, particularly regulatory institutions, UNCDF is strengthening the enabling environment for digital transformation. Early efforts focus on supporting the formulation of inclusive policies and regulations that promote access to and usage of digital financial services, while safeguarding consumer rights and building public trust.  In line with this, UNCDF is currently supporting the Republic of the Marshall Islands (RMI) Office of the Banking Commission (OoBC) to strengthen national frameworks for financial inclusion and consumer protection. This is in the form of National Financial Inclusion Strategy (NFIS) and a dedicated Financial Consumer Protection (FCP) policy—both critical foundations for building an inclusive, resilient, and well-regulated financial sector.

hrough its engagement in the Marshall Islands, UNCDF aims to build an inclusive digital economy by addressing systemic barriers, reducing the digital divide, and improving the lives of Pacific Islanders, particularly women, youth, rural communities, MSME owners, and labor mobility workers. 

These foundational activities pave the way for long-term economic inclusion and digital innovation, aligned with the country's development aspirations. 

Solomon Islands

Driving inclusive digital transformation 

With support from development partners, UNCDF is advancing inclusive digital transformation in the Solomon Islands by improving infrastructure, promoting financial innovation, and addressing barriers to access and usage of digital services. 

Since 2021, UNCDF has facilitated the launch of the country’s mobile money platform, supported SIM-card registration drives, and piloted instant digital loans. Digital and financial literacy campaigns have reached rural and underserved communities, promoting greater trust and capability in using digital tools. 

To inform policy and investment decisions, UNCDF conducts annual inclusive digital economy stock takes with government, private sector, and civil society partners. These engagements foster public-private collaboration and ensure digital development is inclusive and aligned with national strategies. 

Enhancing financial preparedness for climate shocks 

UNCDF is supporting the development of inclusive insurance markets in the Solomon Islands to protect vulnerable communities against climate-related shocks. 

Working with national regulators, private insurers, mobile money providers, and local aggregators, UNCDF is piloting parametric insurance products that deliver timely payouts after trigger events such as cyclones or excess rainfall. These solutions enable households and small businesses to recover faster, reducing financial stress in the aftermath of disasters. 

Complementary activities include awareness-building, capacity strengthening, and policy dialogue to foster an enabling regulatory environment. These efforts align with national disaster risk management and financial inclusion strategies and are supported by key bilateral partners. 

Scaling locally led climate adaptation 

Launched in 2024, UNCDF is supporting the integration of climate adaptation into provincial development planning through performance-based climate resilience grants. 

Implemented in partnership with the Ministry of Provincial Government and Institutional Strengthening, this initiative deploys grants through existing public finance systems to help provincial governments implement localized, community-driven climate adaptation projects. 

With a five-year budget of $15.6 million, initial activities will support over 20 infrastructure projects across five provinces, addressing challenges such as sea-level rise, water scarcity, and declining agricultural productivity. Over four grant cycles, all nine provinces will be engaged through capacity building, technical assistance, and climate awareness campaigns. 

This initiative is aligned with the Solomon Islands’ National Climate Change Policy and supports broader efforts to strengthen subnational public financial management systems. 

Tonga

Strengthening financial inclusion and digital innovation for resilient growth 

Since opening its office in early 2021, UNCDF has been working closely with the Government of Tonga to improve financial inclusion, enhance access to digital services, and empower underserved communities through inclusive economic systems. 

UNCDF supported the National Reserve Bank of Tonga in the development of the country’s first National Financial Inclusion Strategy, a foundational policy guiding cross-sector collaboration to expand access to finance. This work is complemented by support for digital infrastructure, credit innovation, entrepreneurship, and financial literacy, ensuring that no one is left behind in the Kingdom’s digital transformation journey. 

Enabling climate risk protection for vulnerable communities 

In response to Tonga’s heightened exposure to climate change and extreme weather, UNCDF has introduced innovative financial instruments to enhance resilience and preparedness for low-income households and small businesses. 

In 2021, UNCDF completed a national demand-side study that shaped the rollout of Tonga’s first parametric insurance product in 2022. With support from development partners, insurance coverage has since expanded through additional underwriters and channels. UNCDF also provided grants to financial institutions to facilitate outreach, and supported the development of targeted marketing strategies focused on expanding access to micro and small enterprises. 

These insurance products ensure that households and businesses can access timely payouts after disaster events, enabling faster recovery and strengthening national financial resilience frameworks. 

Catalysing digital transformation and inclusive innovation 

UNCDF is supporting Tonga’s digital transformation through targeted policy tools, ecosystem support, and investments in digital public infrastructure. 

Using the Inclusive Digital Economy Scorecard (IDES), UNCDF helped the Government of Tonga identify critical gaps in the digital ecosystem. The lowest-scoring pillar—Innovation—received focused support, including the planned launch of the country’s first Innovation Hub in 2025, led by the Prime Minister’s Office. This hub will offer a platform for technology access, capacity building, and entrepreneurial support, particularly for youth and start-ups. UNCDF is contributing seed funding and technical assistance to this initiative. 

UNCDF has also collaborated with the Tonga Development Bank to launch a credit guarantee loan product for seasonal migrant workers, helping more than 50 individuals cover pre-departure costs such as visa fees and airfares. An alternative credit scoring system was introduced to extend lending to customers without traditional collateral, improving financial access for underserved populations. 

In partnership with Digicel Tonga, UNCDF has expanded digital access points by supporting the establishment of Tonga’s first e-commerce aggregator and an agent-and-merchant network. As of March 2025, these efforts have enabled 8,171 registered mobile money users, 63 agents, and 106 merchants, significantly increasing the reach of digital financial services. 

Additionally, UNCDF supported the Ministry of Trade and Economic Development in conducting a tax incentive study to assess the benefits of removing duties on ICT imports. This work complements Tonga’s National E-Commerce Strategy and broader efforts to boost MSME participation in the digital economy. 

Tuvalu

Strengthening financial resilience and community-led climate action

Pioneering insurance solutions for climate risk protection 

UNCDF is enabling Tuvalu’s first parametric insurance product to protect low-income households from extreme high tide events, a pioneering climate risk insurance solution tailored to the country’s unique geographic and environmental vulnerabilities. 

This insurance product, to be launched soon, will provide timely, data-triggered payouts to households based on real-time tide height measurements. In coordination with the Government of Tuvalu, UNCDF is also supporting the establishment of a dedicated Insurance Hub to oversee product rollout and distribution, ensuring transparency and community accessibility. 

Future phases will explore coverage for other climate-related perils, such as drought. This initiative directly supports Tuvalu’s national efforts to strengthen financial preparedness and resilience to climate shocks. 

Advancing locally led adaptation through performance-based grants 

UNCDF is supporting Tuvalu in operationalizing a Performance-Based Climate Resilience Grant (PBCRG) system to promote community-driven climate adaptation across the outer islands. 

Through three cycles of grant disbursement, over $400,000 has been invested in climate resilience infrastructure, benefiting more than 1,000 residents. Projects have included drought-resilient water storage systems in Nukulaelae, solar installations in Nukufetau, food security units in Nanumea, and enhanced disaster preparedness across all participating Kaupules (local authorities). 

Training activities in 2024–2025 reached 31 local officials, 42% of whom were women, building capacity in climate data interpretation and public financial management. These efforts aim to improve local planning, strengthen governance systems, and position Tuvaluan communities to access long-term adaptation finance aligned with the national development plan, Te Kete. 

This work is made possible through the support of the Swedish International Development Cooperation Agency (SIDA).  

Expanding access to sustainable finance 

UNCDF is preparing to expand its support to Tuvalu under a new regional initiative aimed at enhancing access to inclusive and climate-aligned finance across the Pacific. 

This initiative will foster the development of small and medium-sized enterprises (SMEs), facilitate investment readiness, and promote green innovation. Tuvalu will benefit from targeted technical assistance, capacity building, and access to blended finance instruments that support economic diversification and job creation, particularly for women and youth. 

Activities will align with national development goals and aim to unlock private capital while ensuring long-term sustainability and resilience in small island economies. 

Vanuatu

Advancing digital and financial inclusion for resilient development

UNCDF’s work focuses on expanding access to digital financial services, strengthening policy and regulatory frameworks, improving financial and digital literacy, and supporting innovation to unlock private sector investment. Through these efforts, UNCDF is helping Vanuatu transition toward a more inclusive, sustainable, and digitally empowered future. 

Catalysing inclusive digital transformation

Over the past three years, UNCDF contributed to the National Financial Inclusion Strategy 2025–2030, a new Digital Financial Services Regulatory Framework, and digitization of civil registry and identity systems. It supported the development of the Electronic Police Clearance Certificate and integrated financial literacy into the education curriculum.

UNCDF helped the Reserve Bank of Vanuatu become the first digital financial services regulator, supported the country’s first e-commerce aggregator, and expanded the Digicel agent network. By 2024, more than 25,000 customers had been onboarded to digital wallets, including 10,597 women. These efforts mobilized $124,000 in partner contributions and strengthened financial inclusion and economic resilience.