Vanuatu is one of the most vulnerable countries in the world. Every year Vanuatu faces high natural disaster risk, including tropical cyclones, earthquakes, floods, and volcanic activities and climate change.
Challenges
In recent years, Vanuatu has faced onslaught enormous challenges internally and externally and has been grappling with uncertainty.
- The national carrier, Air Vanuatu, went into liquidation in May 2024,
- Earthquake – the capital city experienced a major earthquake in December 2024, Economic Citizenship Program revenues remain at risk, and the export sector is grappling with an uncertain global environment.
- Poitical crisis – Following Parliament dissolution in November 2024, the government elected in January 2025 committed to strengthening political stability, rebuilding critical infrastructure, enhancing revenue collection, and improving public sector efficiency.
Backbone
The Vanuatu citizenship by investment program has been a “backbone” of Vanuatu economy, a crucial source of foreign direct investment (FDI) in addressing stimulus package for disaster affected areas with rehabilitation and displacing local population. Despite UK and EU revoked visa free access to Vanuatuans, the program is important for country to survive. According to IMF estimates, Vanuatu Citizenship Revenues contributed to 7% of GDP in 2023 continuing to fund critical infrastructure, climate resilience, and social development initiatives..
Revenues
The Revenues from Vanuatu Citizenship by investment program has reached USD 97 million in 2021, then plunged to USD 70 million next year. The IMF projected this revenue to further down to USD 60 million for 2025.
Reforms
The Vanuatu CIP has been criticised for lately for lack of security checks and transparency, since then the government has introduced several measures tightening the program standards such as…
- Collection of passports must be done personally or at consulates abroad in person.
- Biometrics collection in person.
- Proper channels to collect fees
- Appointment of new chairman of citizenship commission.
- Withdrawal of citizenship granted to wanted people.
Dismantling CIP program would devastate the economy of Vanuatu, which depend on these revenues for fiscal stability, resilience against climate shocks, natural disasters and post-pandemic recovery.
The government in ensuring that their Citizenship by Investment Program meet the highest standards of international transparency and accountability.
