Building up small businesses in Tonga

Carlos Alejandro Rodriguez swapped the cold climate of North America for the sunshine in the South Pacific, to help build capacity for micro, small and medium-sized enterprises (MSMEs) in the Kingdom of Tonga.

The government of the Pacific Island nation hopes to upgrade productivity in agriculture, especially of the squash and vanilla bean industries, expand the tourism industry and improve communications and transport.

Mr Rodriguez works with Tonga’s Ministry of Labour, Commerce and Industries to help in the expansion of the country’s private sector, specifically through knowledge sharing. He is motivated by the desire to deliver practical and useful advice, so as to facilitate the growth of MSMEs in the small island state.

Working with his colleagues in the Tongan Government, Mr Rodriguez is helping to create two Learning Centres for Information Technology and Business – in the capital Nuku’alofa and in Vava’u. The aim is to address the lack of information and communication technology (ICT) infrastructure, which is critical for obtaining data, conducting internet research, handling e-commerce and international networking.

‘Initial training for some groups is on the use of computers and the internet’, Mr Rodriguez says. ‘Once people graduate from these courses, they can be guided to receive instruction through online learning kits for small businesses on subjects such as office administration, financial transactions, business plans and access to credit’.

Plans are under way to develop a dedicated website for MSMEs in Tonga, which will serve as a ‘one-stop shop’ for information and tips on business management, trends and markets. Mr Rodriguez also observes that Tonga’s micro and small enterprises require additional microfinance services, as they are currently excluded from basic banking services.

‘These microfinance services should include social performance indicators, to evaluate their impact and effectiveness on Tongan society’, he explains.

Working in Tonga has been challenging and interesting, according to Mr Rodriguez, who notes that there is potential to be tapped and skills to be sharpened for greater socio-economic progress: ‘The work we do impacts thousands of Tongan individuals and MSMEs. We trust that our actions will bring about long-lasting positive consequences to this society’, he says.

Before working in Tonga, Mr Rodriguez ran an investment banking business in Venezuela, advising medium-sized enterprises involved in the energy sector, and worked with small businesses to help them gain access to credit from commercial banks.

Secretariat Links:

• Country Profile: Tonga