It seems we are surrounded by natural disasters and their aftermath at present. Before the severe weather and resulting floods that impacted New Zealand, we recently acknowledged the first anniversary of the Hunga Tonga-Hunga Ha’apai eruption in Tonga. The eruption unleashed significant damage and loss of life on one of our nearest neighbours, and evidently according to some scientists it has also had an impact on our weather patterns.
As we consider recovery from these disasters, we need to contemplate new models and approaches to development (particularly infrastructure), and there is much to learn from how Tonga is approaching their future.
Recently I had the opportunity to lead a business delegation to Tonga of EMA and Auckland Business Chamber members and partners. We were there to work with the Tonga Chamber of Commerce, businesses, and government agencies, with input from our New Zealand diplomats and companies on the ground. What we discovered was both surprising and inspiring.
We know that countries in the Pacific like Tonga have developed great resilience and determination from the constant challenges that mother nature presents. Despite this, the political leadership, public sector, and business community are actively looking to a new model and future for their people.
First it is about building fit-for-purpose and resilient infrastructures. This includes broadband cables, mobile infrastructure, higher bridges and new roading (to bypass flood zones), renewable energy primarily from solar collection, and a localised “sovereign” data centre. These will all contribute to the Tongan economy being better able to cope with both climate, weather, and economic challenges.
Tongan Prime Minister Siaosi Sovaleni has a Masters in IT and qualifications in computer science, something quite unique among global political leaders. Therefore, it is no surprise to see a focus on tech infrastructure and digital skills, and the job opportunities that they will unlock.
As a result, there is a strong focus on developing higher paid local jobs, rather than seeing their GDP reliant on regional seasonal employment and other job opportunities outside of Tonga, particularly in New Zealand, Australia, and the USA. This includes developing a professional services outsourced capability to support businesses in New Zealand, to compete with distant locations like the Philippines and India.
Tonga’s demographics will deliver, as a percentage of their total population, one of the largest young and digitally-skilled workforces in the region. This will open up all sorts of opportunities with broadband connectivity to countries like New Zealand that are struggling to find those skilled workers (and highly educated). A win-win scenario for New Zealand given the current economic climate locally, and political interests in the region.
Agricultural production, historically an important part of the Tongan economy, is also not being ignored. There are moves to introduce more resilient crops and deploy technology to improve yield and quality. Importantly there is a focus on developing more food and beverage processing capability and capacity in the kingdom.
For example, Tonga is a global leader in the production of kava with new manufacturing facilities that comply with strict FDA requirements under construction. Kava has become a popular natural pain relief and recovery product and ingredient in many western countries including the USA.
Tourism is another key part of the Tongan economy, and the natural beauty and unique character of each island will make it a “bucket list” destination for many travellers as they become aware of its pristine nature and unique local “mafana” hospitality which comes from the heart.
Tonga is rightly described as a developing country, but the strategic focus of its leaders is enabling an exciting future that could make it more economically independent on one hand, by being seen as a strong partner by New Zealand and Australia on the other. We look forward to playing our part in that transition working alongside our neighbours and counterparts in the kingdom.
A thriving Tonga leads to a thriving region.
About the EMA:
The EMA is New Zealand’s largest business service organisation dedicated to helping people and businesses grow. It offers advice, learning, advocacy and support for more than 7,100 businesses as members of the EMA, and ExportNZ. The EMA is part of the BusinessNZ Network and its territory spans the upper North Island. The EMA also offers many of its services nationally to member businesses, and through its partners.
