ADB's Work in Samoa

Samoa has two main islands—Savaii and Upolu—and several smaller ones covering 2,934 square kilometers of land. The country depends on fisheries and agriculture for exports while importing most of its fuel and commodities. The combined impact of a measles outbreak in late 2019 and the coronavirus disease (COVID-19) pandemic in 2020 saw gross domestic product contract by 3.3% in fiscal year 2020. Moreover, although remittances grew by 4.9%, visitor arrivals fell by 30.3% due to border closures. Further contraction occurred in fiscal years 2021 and 2022 (with estimates of –7.1% and –6%, respectively) with a slow restart in tourism after borders reopened in August 2022.

Samoa is a founding member of ADB in 1966 and has been receiving support from the bank for infrastructure development and policy reforms, and strengthening its climate resilience. Samoa has been making good progress in addressing poverty and managing gender, health, education, and environment issues.

To date, ADB has committed 147 public sector loans, grants, and technical assistance totaling $484.3 million to Samoa. Cumulative loan and grant disbursements to Samoa amount to $320.61 million. These were financed by concessional ordinary capital resources, the Asian Development Fund, and other special funds. ADB’s ongoing sovereign portfolio in Samoa includes 1 loan and 7 grants worth $138.4 million.

ADB assistance to Samoa focuses on renewable energy, land and maritime transport, health, and disaster resilience. The dual health crises—measles and COVID-19—have significantly impacted Samoa’s economy. In response, ADB provided $20 million in budget support under the Health Expenditure and Livelihoods Support Program and $1.5 million through the Asia Pacific Disaster Response Fund financed by the Government of Japan.

In 2020, ADB committed $7.5 million for Samoa under a project to support vaccine rollout and strengthen health systems. As part of its COVID-19 response, ADB committed an additional $8 million to the project in 2021.

ADB is supporting projects to enhance the safety, security, and sustainability of the Apia port, and to upgrade Upolu’s central cross island road. In 2021, ADB committed $5 million to prepare priority land transport projects.

Samoa is prone to disasters triggered by natural hazards. In 2017, ADB committed $6 million under the Pacific Disaster Resilience Program as contingent financing for post-disaster early recovery and reconstruction activities. In April 2020, ADB expanded the program to include health emergencies. The program was replenished with a $10-million grant in December 2020, which Samoa drew down in April 2022 upon confirmation of COVID-19 community transmission. Samoa then drew down a $2.9-million grant in response to the COVID-19 emergency and the remaining $3.1 million loan when the program was closed in December 2022.

ADB committed and disbursed $7.5 million for budget support under subprogram 1 of the Strengthening Macroeconomic Resilience Program in 2022. The program supports policy reforms for restoring fiscally sustainable growth led by the private sector, which has been adversely affected by the COVID-19 pandemic.

ADB further supports private sector development through the Samoa Agribusiness Support Project that facilitates access to financing and business support services to selected agribusinesses. The project is cofinanced by the Government of Australia.

Apia Harbor, Samoa. Photo: Eric Sales/ADB

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Samoa as of 31 December 2022 was $800,000 representing 0.01% of ADB’s total private sector portfolio.

Operational challenges. ADB projects in Samoa continue to be affected by geographical isolation, capacity constraints, and issues related to environment and social safeguards. A submarine internet cable, which went live in 2018, has helped overcome the challenges of remoteness through improved connectivity, while the project to improve Apia’s port will help reduce trade and transport costs.

Capacity constraints limit project implementation in Samoa, though the capacity of both the government and the overall economy is gradually increasing. The COVID-19 pandemic imposed serious challenges including the impact of border closures on the tourism industry and the delayed mobilization of contractors to implement major government projects to stimulate the economy. Improved internet connectivity allowed virtual engagements with development partners to seek expert support.

Knowledge Work

ADB brings added value beyond its important role in project financing. In Samoa, ADB has supported economic and policy reforms, building and supplementing capacity to strengthen areas such as state-owned enterprises performance, public financial management, the business-enabling environment, and gender equality. ADB’s flagship publications, including the Asian Development Outlook and the Pacific Economic Monitor, provide key analytical work to support decision-making.

ADB also participates in joint missions with its development partners in line with the International Monetary Fund’s Article IV consultations, which feature robust discussions with the government on strategic priorities and other critical issues that require coordinated support.

The presence of an office in Samoa enables ADB to play a key role in regional cooperation and integration, and in development partner coordination.

  ADB Projects in Samoa Project data sheets for loans, grants, TAs

Future Directions

ADB’s Pacific Approach, 2021–2025, guides the bank’s operations in Samoa. The strategy focuses on building resilience against economic shocks, delivering sustainable services, and promoting inclusive and sustainable growth while recovering from the impacts of COVID-19. The strategy introduces new priorities areas, including a more programmatic approach to climate change support; a deeper focus on long-term capacity support, including the use of capacity supplementation; increased flexibilities in procurement and contracting; and an emphasis on gender equality.

ADB will continue to help build sustainable capacity for sound economic and public sector management and support reforms for state-owned enterprises.

Last updated: 5 May 2023