The Asian Development Bank (A.D.B.) has approved a policy-based grant of SAT$22 million (US$7.85 million) to support the Government of Samoa in enhancing fiscal management and improving the country’s business environment. 

This funding marks the second phase of the Samoa Strengthening Macroeconomic Resilience Program, known as Subprogram 2, which builds upon the reforms implemented in the first phase.

Subprogram 2 is designed to deepen the impact of its predecessor by addressing key areas of economic development, including fiscal sustainability, private sector growth, and financial sector improvements. It aligns with the Government of Samoa’s broader goals of fostering resilient communities, empowering citizens, and driving economic growth.

According to ADB’s Pacific Subregional Office Regional Director, Aaron Batten, the program’s success is a testament to the Government of Samoa’s commitment to reform. 

"It is encouraging to see how the Government of Samoa has embraced reforms which will ultimately break down the barriers to private sector development that will allow the private sector to grow and contribute to sustainable economic development," Batten remarked.

The US$7.85 million policy-based grant for Subprogram 2 follows a US$7.5 million grant for Subprogram 1, which was approved in 2022. 

Together, the two subprograms form a comprehensive strategy to enhance fiscal management and support recovery from the COVID-19 pandemic.

The first subprogram laid the groundwork by focusing on three critical areas: improved fiscal management and sustainability, an inclusive and robust private sector recovery, and finance sector development. Building on these reforms, Subprogram 2 seeks to accelerate these efforts, ensuring the long-term stability of Samoa’s economy.

The overarching objective of the ADB assistance is to facilitate an economic environment conducive to private sector growth and post-pandemic recovery. Both subprograms aim to achieve specific policy actions, such as implementing sustainable debt management practices, strengthening labour protections, attracting private investment, supporting emerging industries, enhancing financial inclusion and promoting digital financial services.

These reforms are expected to foster a more resilient and diversified economy, ultimately contributing to sustainable growth and greater economic stability.

ADB’s support for Samoa forms part of its broader vision to foster a prosperous, inclusive, and resilient Asia and Pacific region. As part of this mission, ADB continues to support its member countries in eradicating extreme poverty while promoting sustainable development.