The Vanuatu Value Chain (VaVaC) Programme responds to the needs of Vanuatu as expressed by the economic pillar of the National Sustainable Development Plan (NSDP) 2016-2030, and more specifically by the recommendations of the two sector policies – the Overarching Productive Sector Policy (OPSP) 2012-2017; and the Vanuatu Trade Policy Framework (TPF) 2012. At the same time, VaVaC aligns with the Vanuatu-European Union National Indicative Programme (NIP) 2014-2020 that has allocated EUR 25 million for the Focal Sector “Rural Development”. Moreover, this programme aligns with the Recovery Plan titled “Strengthening Ni-Vanuatu Resilience” that the Government of Vanuatu (GoV) launched after Tropical Cyclone (TC) Pam devastated several of its islands in 2015, and for which reason the European Union allocated to this Action additional EUR 10 million from its 11th European Development Fund (EDF11) Reserve.

The overall objective of the VaVaC programme is to achieve a strong rural economy which creates opportunities, enables the development of rural communities, and increasingly contributes to national prosperity. The specific objective is to contribute to equitable, broad-based, and sustainable economic growth, recovery, and resilience by promoting organisation, production, value addition, safety and quality, and trade in the coconut, beef and fruits and vegetables value chains. These agricultural products contribute significantly to household income and were selected by the GoV based on their farm income and employment potential, provincial impact, linkages with tourism and manufacturing, and suitability to satisfy domestic and international demand.

Total estimated cost: EUR 25 million of which:

• EUR 20.0 million for Budget Support
• EUR 4.0 million for Complementary Support
• EUR 1.0 million for Evaluation, Audit, Communication and Visibility, and Contingencies

The Purpose of the Funds shall be to foster economic growth and co-operation within the Vanuatu’s productive sector in general and to contribute to enhance the economic development potential for the active actors of the industrial sectors of Vanuatu.

The Objectives of the Funds, consistent with the provisions of Section 11 of the Industrial Development Act of 2014, are:

• Continuing industrial policy research and project monitoring by the Department of Industry; and
• Contributing to financing Industrial Development Programmes, consistent with Section 13 of the Industrial Development Act no 19 of 2014.

 The IDF Constitution is available here.