Most Pacific countries lack capacity, resources, and necessary health infrastructure to cope with the impacts of Covid-19. Economic losses from Covid-19 are severe to businesses around the globe, but in the Pacific, the losses in the private sector have been even higher due to their remoteness, small size, wide geographic dispersion, narrow economic base, and exposure to disasters triggered by natural hazards. Namely, restricted international and domestic travel has affected the Pacific’s main economic sectors, such as tourism and trade, and micro, small and medium-sized enterprises (MSMEs) have suffered the most and need significant support to recover.
The Pacific COVID-19 Business Recovery Program will strengthen the enabling environment for MSMEs. It will improve MSME access to business development services and finance to help build and enhance their capabilities to grow in the post-pandemic period. Its approach will be targeted, demand-driven, and differentiated, with support tailored to each country’s needs and recovery priorities.
The program is being implemented in close coordination with the Pacific Private Sector Development Initiative and other development partners’ programs, including Business Link Pacific and the Pacific Small and Medium Enterprise Finance Facility.
The two expected outputs for this program are:
The expected outcome to increase the capability of MSMEs to recover from the effects of the Covid-19 pandemic and to improve their growth in the post-pandemic period. The expected impact is sustained recovery of Covid-19–affected MSMEs and their reduced vulnerability to prolonged economic downturn.