MANILA — The Asian Development Bank (ADB) has approved a $9 million grant to expand credit access and unlock business opportunities for women entrepreneurs in Tonga. This initiative will help boost the growth of women-owned and women-led micro, small, and medium-sized enterprises (MSMEs) in the country.
The Women Entrepreneurs Leveraging Innovative Finance in Tonga Project will support the design of inclusive financial products, tailored support services, and policies that advance private sector development in the country.
“The project is ADB’s first finance sector initiative dedicated to women entrepreneurs in Tonga,” said the Regional Director of ADB’s Pacific Subregional Office Aaron Batten. “It will unlock bank lending for women entrepreneurs to help them grow their businesses.”
Women entrepreneurs face many barriers to business, including limited access to finance due to lack of acceptable collateral—often linked to land ownership restrictions—high informality, and inadequate business development services (BDS).
The project will help break these barriers to business by establishing Tonga’s first risk-sharing facility to ease collateral constraints and expand bank lending to women entrepreneurs through partial credit guarantees; introducing an enablement fund offering grants to improve the bankability of informal MSMEs; delivering tailored BDS through a business advisory hub; and enhancing women’s financial, digital and business skills.
The grant is funded through ADB’s Asian Development Fund, which provides grants to the poorest and most vulnerable countries in Asia and the Pacific. During 2021–2024, the fund helped 384,000 people emerge from poverty and generated around 500,000 jobs.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
