Building the future is crucial for all nations and key to achieving shared goals. Across the Pacific, ANZ is the regional banking partner for a major multinational deploying a satellite-driven venture to bring affordable internet to remote communities.
“The Pacific’s cultural, economic, and geographic diversity presents unique challenges and opportunities,” said Sarah Stubbings, ANZ Regional Executive, Pacific. “Three years ago, I was privileged to take this role in a region where ANZ has served for over 140 years.”
ANZ operates in nine Pacific countries including Fiji, Samoa, Vanuatu, Tonga, Kiribati, Solomon Islands, Cook Islands, Papua New Guinea, and Timor Leste, with over 1,200 staff. In the past five years, ANZ has invested nearly AUD 95 million in infrastructure and technology across the region.
The bank supports customers’ ambitions to invest in sustainable, resilient infrastructure that benefits communities long term. In Kiribati, ANZ supports expanding mobile coverage to previously unserved areas, enhancing digital inclusion. In Tonga, the bank helps finance network upgrades and a future 20MW solar site, supporting Tonga’s 70% renewable energy target by 2025.
However, the need for infrastructure investment is urgent. ANZ’s latest Pacific Insight Infrastructure report shows Pacific nations face limited resources balancing competing priorities. Many governments prioritize repairing damage from natural disasters like cyclones, floods, tsunamis, volcanic eruptions, and managing global crises like the pandemic. These challenges limit borrowing capacity to build infrastructure needed for economic growth.
The investment shortfall for Pacific infrastructure was USD 1.1 billion in 2024, slightly better than an earlier forecast of USD 1.3 billion. With increased support from development partners, this gap should narrow over the next few years, but a deficit is expected through to the mid-2030s. ANZ estimates a total infrastructure deficit of about USD 11 billion by 2035.
To address this, ANZ sees private sector participation as essential to reducing the gap. More capital is becoming available globally with a focus on sustainability, but issues like scale, portfolio building, understanding of Pacific green ambitions, and credit risks discourage top-tier investors.
Governments could support projects with clear economic benefits but limited direct user revenue by bridging financing gaps. Minority government stakes in joint ventures can also align interests, reduce project timelines, and share dividends.
Climate finance is critical in the Pacific. Despite pledges at COP29 for USD 300 billion annually by 2035 for global climate mitigation and adaptation projects, only a small portion will likely reach Pacific nations.
The Pacific could explore issuing green and blue bonds to fund land and ocean environmental projects. Fiji leads by example, having issued the first emerging market sovereign green bond in 2017 and a blue bond in 2023.
Debt-for-nature swaps present another funding option. These agreements provide debt relief to countries in exchange for commitments to decarbonization, resilient infrastructure development, or conservation of biodiverse areas, without triggering fiscal crises.
Additional support comes from programs like the Trilateral Partnership of Australia, Japan, and the USA, and the Australian Infrastructure Financing Facility for the Pacific, which reduce borrowing risks and interest rates.
Asset recycling, or capital recycling, is an emerging funding avenue where governments privatize or lease public income-generating assets to finance new infrastructure projects. However, privatization should only occur if private sector management is demonstrably more efficient.
Sarah Stubbings emphasizes ANZ’s role: “Our partnership with the Australian Government, exemplified by the Australian Infrastructure Financing Facility for the Pacific and a 10-year presence and guarantee arrangement signed this year, showcases our commitment. This guarantee supports our efforts to invest and grow our business in the Pacific, keeping communities connected and financing flowing.”
Satellite technology plays a central role in bridging the digital divide in the Pacific. High-throughput satellites enable affordable broadband access to remote and rural communities where traditional infrastructure is limited or absent. For example, the Kacific-1 geostationary satellite provides high-speed internet connectivity, expanding opportunities for education, commerce, health, and disaster resilience.
Recent volcanic eruptions and submarine cable outages in Tonga demonstrated satellites’ critical role in maintaining communications during crises.
Digital banking forms a core part of ANZ’s vision, reaching 60% active customer usage in the Pacific and growing. Digital platforms provide essential services where branches cannot reach, especially in outer islands.
ANZ also actively promotes financial literacy through its MoneyMinded program, which has empowered over 50,000 Pacific Islanders since 2011 and is expanding to include scams awareness modules to foster resilience.
With nearly AUD 95 million invested in the past five years, ANZ continues to back sustainable infrastructure and digital transformation to support economic growth and community wellbeing in the Pacific.
“We are committed to our Pacific business and ensuring it is sustainable for the long term and to help our communities thrive in the digital era,” said Stubbings.
ANZ’s sustained investment and partnerships place it at the heart of efforts to support a stronger, more connected, and resilient Pacific.
