The European Union (EU) has pledged EUR8 million for the next three years to support the growth of inclusive digital economies as drivers of economic development in the Pacific through a partnership with the UN Capital Development Fund (UNCDF) and its flagship Pacific Digital Economy Programme.

Digital solutions and platforms hold much promise as a vehicle for growth in the Pacific region, which is characterised by steep geographical challenges and lack of access to formal financial services in rural areas.

With the financial support of the EU, the Pacific Digital Economy Programme will work with various public and private sector stakeholders to build an enabling environment for the growth of inclusive digital economies in the Pacific.

It will provide the digital foundation for initiatives that promote access to and usage of inclusive digital services and solutions, and enhance digital literacy and education.

Strengthening these areas will narrow the digital divide in the region by addressing the unique needs of last-mile communities, improving standards of living and creating new economic opportunities for Pacific Islanders.

The Chargée d’affaires, acting Head of Delegation of the European Union for the Pacific, Dr. Erja Askola said: “Digital technology will be at the forefront of development efforts in the Pacific region where the challenges of remoteness and territorial dispersion call for innovative digital solutions. The Pacific Digital Economy Programme will strengthen digital and financial literacy and customer protection mechanisms in the emerging digital economy. This will in turn have a positive impact on the lives of Pacific Islanders by reducing poverty, improving livelihoods, and contributing to economic growth.”

UNCDF Regional Lead for the Pacific Region Ms. Neha Mehta said: ‘’We are exceedingly grateful for the level of cooperation and support from the EU, the support will help shape and strengthen Pacific Island economies. Digital is the new frontier of financial inclusion, literacy, and education and UNCDF’s goal is to equip and empower millions more Pacific Islanders by 2024 to use innovative digital services in their daily lives ensuring no one is left behind.’’

The Pacific countries benefitting from the initiative are Fiji, Samoa, Vanuatu, Solomon Islands, Tonga, the Federated States of Micronesia, Kiribati, the Republic of Marshall Islands, Papua New Guinea and Timor-Leste.

The Pacific Digital Economy Programme is jointly implemented by UNCDF, the UN Conference on Trade and Development (UNCTAD) and the UN Development Programme (UNDP), with additional support from the Government of Australia.