Decorated market on Vuna Road, Nuku'alofa. Photo: Matangi Tonga
The Asian Development Bank (ADB) has approved a US$9 million grant to support Tongan women in business ventures.
In a statement, the bank said the initiative help boost the growth of women-owned and women-led micro, small, and medium-sized enterprises.
ADB's Pacific subregional office regional director Aaron Batten said it will unlock bank lending for women entrepreneurs to help them grow their businesses.
The ADB said the project will support the design of inclusive financial products and tailored support services.
"Tonga's small, climate-vulnerable economy offers limited and uneven opportunities for entrepreneurship, particularly for women," it said in its project rationale.
"[Women] form a significant share of the private sector but remain largely excluded from formal finance and tailored support services.
"Structural barriers such as rigid collateral requirements, restricted land ownership rights, and the absence of gender-responsive financial products constrain their access to credit.
"Government initiatives have sought to bridge financing gaps but frequently lack effective targeting, coordination, and linkage with [business development services], resulting in financial dependency instead of long-term financial empowerment."
In 2024, a report on women in business leadership in the region was produced by the Pacific Private Sector Development Initiative (PSDI), an ADB technical assistance program which has funding support from Australia and New Zealand.
It said Pacific regional averages for women's representation in business leadership surpassed global averages, but disparities persisted.
Aerial view of Tongatapu. Photo: Expedia
In Tonga, the most common occupation among women was craft and related trades, according to a 2019 government report.
"Women are more likely than men to be employers and professionals but are underrepresented in the construction, transportation, and storage industries."
The PSDI report also quoted a 2022 Tonga Civil Society Organisation task force saying there is little official support for women workers, particularly in the private sector.
The report also said according to the World Bank, although women's labour force participation has increased since 1990, the gender gap persisted.
An informal business survey in 2021, done by the PSDI in collaboration with the Tonga Ministry of Trade and Economic Development, surveyed 2,301 informal businesses across 1,519 households, 56 per cent of which were operated by women.
It said most businesses started with personal funding and very little involvement of official institutions, with more than 60 per cent unaware of the need to register their business.