In Tonga, where many small businesses operate within the informal sector, enhancing their access to financial services has become a national priority.

“A lot of MSMEs do not have the permanent income or collateral needed to access formal bank lending,” said Governor Tatafu Moeaki of the National Reserve Bank of Tonga (NRBT). “The Bank, in recognition of this shortfall and limited financing options for these productive sectors, introduced a Microfinance Act in 2018.”

Since then, efforts to expand small businesses’ access to finance have escalated. South Pacific Business Development (SPBD), a microfinance institution, has made unsecured loans available to help individuals start or grow businesses. It also provides financing for housing improvements and children’s education, and supports over 11,000 members across the country.

The Bank of South Pacific (BSP) Tonga has also played a vital role. Discounted lending products and reduced interest rates on personal and SME loans have helped alleviate financial burdens for many small enterprises. Local retail shops and service providers have been able to restock inventory, enhance health and safety measures, and transition to digital platforms.

Our video below contains powerful stories of how Tonga’s Microfinance Act sparked real change—showcasing how national policy and practical solutions like microloans are helping small businesses access new opportunities and build resilience.