Outer Islands Credit Project

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Outer Islands Credit Project

Outer Islands Credit Project

This project marked a shift in focus to the outer islands, which are more disadvantaged than the main island. Previous projects demonstrated that microcredit could make a significant difference in the living standards of the rural poor. In this project the goals were to expand availability of credit in the outer islands, offer more focused assistance to the poor and introduce group lending and other credit practices that might lower transaction costs and improve loan repayment. The target groups were smallholder farmers producing mainly cash crops and some livestock, and fishers engaged in inshore and offshore fishing around the coral reefs. Credit helped them increase production capacity through the purchase of fishing nets, outboard engines, small boats and aquaculture materials. Group loans also helped develop alternative sources of income. The project also benefited women's groups that produce handicrafts, especially traditional Tongan mats, and other small rural enterprises engaged in marketing and processing agricultural produce, and in carpentry, cottage industries and tourism.

Source: IFAD

Status: Closed
Approval Date
06 April 1993
1993 - 1999
Credit and Financial Services
Total Project Cost
US$ 6.73 million
IFAD Financing
US$ 2.96 million
Co-financiers (Domestic)
Domestic Financing Institutions US$ 3.25 million
Financing terms
Highly Concessional
Project ID

President's reports

Project design reports

Supervision and implementation support documents

Environmental and social impact assessment

Final environmental and social management framework

Interim (mid-term) review report

Resettlement action framework

PCR digest

Special study

Project list

Audit and Financial Statements

Project completion report