Rural Credit Project

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Rural Credit Project

Rural Credit Project

This project was designed along the lines of the Agricultural Credit Project, but its scope was broadened to include poor people who not had full access to credit in the past. It was implemented countrywide, with an emphasis on the outer islands. A survey made prior to the project indicated a disparity among smallholder families in terms of ownership, access to resources and income levels. The project targeted specific groups, including small-scale farmers with no formal land tenure, young farmers with limited assets, small-scale fishers and women's groups.

The main objective of the project was to broaden the Tonga Development Bank's range of lending in terms of recipients of credit and in terms of territorial outreach to the outer islands. The project worked to develop small-scale rural activities according to each area's potential. In 'Eua the emphasis was on developing fruit, vegetable and livestock production. In Ha'apai the project helped small-scale fisheries, which had recently acquired a boatyard, ice plant and storage facilities, purchase more fishing gear, boats and motors. In this area the waters are underfished, and increased production is important in satisfying domestic demand for more fish. In Vava'u, where tourism is expanding, emphasis was placed on fruit, vegetable, vanilla and handicraft production. The project also supported women's groups in handicraft and other income-generating activities.

Source: IFAD

Status: Closed
Approval Date
26 April 1988
1988 - 1992
Credit and Financial Services
Total Project Cost
US$ 3.38 million
IFAD Financing
US$ 2.28 million
Co-financiers (Domestic)
National Government US$ 1.09 million
Financing terms
Highly Concessional
Project ID

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