National Private Sector
Development Strategy
Executive Summary
Vision for Private Sector Development
• To create a dynamic private sector
• which will generate gainful employment,
• expanding opportunities for people to earn income
• and improve their standards of living.
What does Private Sector mean?
• The Private Sector is that part of the economy
which is run by people for profit.
• It is not the public sector; it is not NGO’s.
Based on GOT statistics, the Private Sector is…
Source: MLCI
Micro enterprises are a source of strength.
Lifting micro enterprises = Lifting Employment Creation
• They number over 11,000 of them in Tonga.
• If only 10% of them hire just 1 person each, employment
increases by more than 1,000 people in Tonga.
Elements that affect all the private sector equally
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Macro economic Stability
• Public Goods and Services
• Business Environment
• Commercial Legislation
Elements that are not equal for all the private sector
• Access to credit
• Business skills levels and skills development
MLCI Promoting a Sound Business Environment
Enabling pro-business Commercial Legislation
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Personal Property Securities Act
Companies Act
New Business Registry
Industrial Property Act
Business Names
Unfair Competition
Traditional Knowledge and Culture
Plant Variety Protections Bill
Copyrights Act, Layout Designs Act
MLCI Promoting Gainful Employment
• The
Regional Seasonal Employer (RSE) scheme with
New Zealand meant that 832 Tongan workers were
mobilised for seasonal employment in 2008.
• Additional demand for 2009 is being experienced.
• Negotiated successful Pacific Seasonal Worker Pilot
Scheme (PSWPS) with Australia.
• First 50 pilot workers in February 2009.
• About 800 visas expected over the next 3 years.
MLCI Promoting Export Growth
2008:
• Public Sector/Private Sector Collaboration produced:
• Situation and Cross-sector analyses
• Identified Constraints and developed Objectives
• Developed the National Export Strategy
2009:
• Export Growth Collaborative process.
• Agriculture, Fisheries, Tourism, Manufacturing in
Scoping Mission to New Zealand.
MLCI Promoting Equality of Opportunities
For Micro enterprises and Women in Business
• Enhance access to Credit Opportunities:
• Develop The Credit Union Bank of Tonga (CUB) to
provide micro finance services, among others.
• Enhance Skills Development
• Create Learning Centres for Information Technology
and Business.
Women in Business are a source of strength.
• 60% of all women employed are micro entrepreneurs.
• Women comprise 44% of the total labour force.
• Because most women entrepreneurs are breadwinners,
once their immediate families are counted, a substantial
number of Tongan people are affected by these policies.
MLCI Promoting Equality of Opportunities
For Small and Medium Enterprises
• Enhance access to Credit Opportunities:
• Develop The Credit Union Bank of Tonga (CUB), to
provide export credit services, among others.
• Enhance Skills Development
• Create Learning Centres for Information Technology
and Business.
Effects of this strategy on the private sector
1. Positive socio-economic results, on practical terms:
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Creates a more dynamic economy.
Generates gainful employment.
Expands opportunities for people to earn income.
Improves standards of living for Tongans.
2. Contributes to fulfill Tonga’s National Vision:
To create a society in which all Tongans enjoy higher living
standards and a better quality of life through good
governance, equitable and environmentally sustainable
private sector-led economic growth, improved education
and health standards, and cultural development.