The Vanuatu government’s digital cash transfer program, initially launched to assist households affected by Tropical Cyclones Judy and Kevin, has encountered significant delays as families await promised support. Although the initiative was announced in May 2023, over two years later, affected households continue to report that they have not received any financial assistance.
Affected residents, such as a family in Etas, expressed frustration after providing their ID details for the cash transfer system without receiving any updates or payments. One family member lamented, “We are in 2025 now, but we are yet to receive what they have told us.”
The cash transfer program was introduced by former Minister of Finance, John Salong, aiming to provide direct financial aid instead of traditional forms of disaster relief like food or shelter. The Vanuatu Post Limited was tasked with developing an application to streamline the process. A pilot program on Lelepa Island showed success, leading to the registration of over 1,000 households in Mid-2023, with plans to extend the program further into TAFEA Province and SHEFA Outer Islands.
However, with no payments made to date, the delays have been attributed to legal complexities within the Disaster Risk Management Act as well as political instability that has disrupted the passage of the necessary budget in Parliament. Salong previously highlighted that the development of the system had undergone tests with a small group but awaited final clearance from the Reserve Bank of Vanuatu (RBV). By February 2024, the government allocated VT700 million (approximately US$5.67 million) for this cash transfer program, part of a broader VT917 million (US$7.44 million) rural economic support initiative.
Recently, Minister Johnny Koanapo indicated that some of the allocated funds would be redirected to address teachers’ claims, and during the 2024 budget discussions, opposition leader Ishmael Kalsakau emphasized the urgent need for action to support families still struggling in the aftermath of the cyclones.
Concerns have also been raised by former MP Christophe Emelee, who criticized the shift away from former effective cash transfer systems managed by local experts. Emelee pointed out that the reliance on foreign developers has led to mismanagement issues and questioned the capabilities of Vanuatu Post Limited in handling such large-scale financial disbursements.
He emphasized the need for clarity on the program’s management costs, the ownership of software, and accessibility for residents in remote areas. Additionally, there are concerns regarding whether Ni-Vanuatu workers earning in Australia and New Zealand under the Recognized Seasonal Employer (RSE) program would be excluded from the assistance despite holding national IDs.
Efforts to contact the Reserve Bank and Vanuatu Post for updates on the program’s status have yielded no response, leaving 66,000 targeted households in limbo as they await the fulfillment of promises made by their government.
These ongoing challenges underline the necessity for the Vanuatu government to streamline its systems and communicate effectively with its citizens, especially in disaster recovery efforts. Although there is widespread disappointment, there remains hope that resolutions will be found, leading to timely aid for affected families. Additionally, recent calls for increased accountability and efficiency in governmental operations may pave the way for better handling of similar initiatives in the future.
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