The project

Nafe is a mother of two and, together with her husband, the backbone of her family. She is fully committed to building a stable life for her family. On their farm, they cultivate vanilla, taro, cassava, papaya, and kava root. Thanks to a loan from SPBD Tonga, they've expanded their vanilla production onto additional land, boosting their export to New Zealand.This expansion increased their income and enabled them to finish building their house, providing a safer home for their children. In a small shed next to their home, Nafe now also produces kava powder. She's determined to grow her small business further, creating local jobs and contributing to her community's prosperity. 

Through SPBD Tonga, Nafe and other women have access to group loans. They meet weekly to save money, which strengthens their community bond. Your investment helps 50 women receive a loan from SPBD Tonga.

Are you curious about the entrepreneurs in Tonga? Read Lynn's travel blog here. 

What social return could your investment make?

Tonga faces challenges inherent to Pacific island economies, such as geographical isolation and constrained financial inclusivity. A substantial segment of its economy relies on foreign remittances, accounting for 27.4% of its GDP in 2017. Amidst these economic constraints, Microentrepreneurs and SMEs offer a route to sustainable growth. However, female microentrepreneurs and SMEs often encounter barriers in securing finance due to socio-cultural and economic factors, restricting their potential for growth. SPBD Tonga addresses this by offering microloans primarily to these women. They've disbursed over 73,000 loans, amounting to about 82 million USD. By supporting SPBD Tonga, you directly assist in unlocking the potential of 150 female entrepreneurs, which is critical for the region's development.
 

What financial return could your investment generate? 

• Annual interest rate of 5,75%
• The maturity of the loan is 24 months
• There will be a repayment of your investment in equal instalments every six months, including the interest
• With an investment of 1.000 euros, your expected total repayment would be 1.072 euros.

The story of SPBD Tonga 

The need for financial inclusion is acute in a region like the South Pacific, where most of the seven million inhabitants live in rural villages and face limited access to traditional banking. American social entrepreneur Gregory Casagrande founded the South Pacific Business Development (SPBD) in Samoa in 2000 to address this gap. The initiative has since expanded to Fiji, Tonga, Vanuatu, and the Solomon Islands, focusing on poverty alleviation through women-led micro-enterprises. 

You can invest in the Samoa and Tonga entities via Lendahand. These entities operate independently.

SPBD Tonga's microfinance program directly aids female entrepreneurs by offering financial services. Through weekly community meetings, they facilitate loan evaluations and collections. Besides, their savings program encourages entrepreneurs to build and secure their financial assets steadily. Through these efforts, SPBD Tonga sets the foundation for a brighter, more stable future.

SPBD Tonga in numbers

• SPBD Microfinance Network consists of 5 individual legal entities, of which SPBD Tonga is one
• Founded in 2009
• 38 employees
• Disbursed 73,000 loans for a total of 182 million Tongan Pa'anga (about 82 million USD), since its establishment