Bringing Investment to Vanuatu: How CNO Future Fund Supports Local Industries

The CNO Future Fund in Vanuatu connects foreign investment with local economic development, focusing on renewable energy, agriculture, and infrastructure. This fund invests in productive industries, including coconut oil biofuel production.

Vanuatu has historically been dependent on tourism and raw commodity exports, making its economy vulnerable to global disruptions and natural disasters. By investing in local industries, the fund seeks to create long-term economic stability by supporting coconut farmers, refining facilities, and energy projects.

Daniel Agius, Chief Operating Officer of the Vanuatu Investment Marketing Bureau (VIMB), which manages the fund, highlighted the broader impact. “This isn’t just about bringing in capital—it’s about creating industries that generate long-term value for Vanuatu’s economy,” he said.

Strengthening the Coconut Industry

Coconut farming has been a core sector in Vanuatu’s economy, but much of its output has been exported as raw copra—a lower-value commodity that benefits foreign refiners more than local farmers. The CNO Future Fund is working to expand processing capabilities within Vanuatu, allowing the country to produce higher-value coconut oil and biofuel.

The fund is investing in drying and refining hubs to improve production efficiency and enable farmers to sell their products at better prices. This shift from exporting raw materials to local processing helps retain economic benefits within Vanuatu while creating stable demand for coconut farmers.

Agius noted the economic shift that comes with these investments. “Farmers are no longer at the mercy of fluctuating international prices. With local processing facilities, they have a more stable and predictable market,” he said.

Developing Infrastructure to Support Local Businesses

One of the greatest challenges for Vanuatu’s industries has been poor transportation infrastructure, which makes it difficult for farmers to deliver products to processing facilities and for businesses to access export markets.

To address this, the CNO Future Fund has supported logistics improvements, including new transportation routes for coconut shipments and biofuel distribution networks. Recent projects include improved connectivity to Torba, Sanma, and the Shepherd Islands, as well as the community-led rebuilding of Craig Cove Wharf​. These infrastructure upgrades help reduce supply chain costs and make it easier for farmers and businesses to operate more efficiently.

The government has also identified renewable energy as a priority sector, and the fund is contributing by helping expand electricity access in rural areas. Once planned generators are installed, coconut oil volumes already produced could support approximately 2MW of grid-based power, reducing Vanuatu’s reliance on imported diesel and supporting small businesses that need stable power for operations.

Creating Jobs and Workforce Training

As investment increases in coconut oil biofuel production and infrastructure, the demand for skilled workers is rising. The CNO Future Fund has already contributed to employment growth in coconut farming, processing, and logistics.

More than 55 new jobs have been created through the fund’s initiatives, with 40 formalized production agreements supporting rural income stability​. To further strengthen the workforce, the fund is working with local training programs to equip workers with technical skills in refining, quality control, and logistics management. These efforts are aimed at making Vanuatu’s workforce more competitive and supporting long-term industry development.

“Economic growth is about making sure people have the skills to participate in these industries,” Agius explained. “That’s why workforce training is a key part of what we’re doing.”

Building Vanuatu’s Presence in Global Trade

With expanded processing capabilities and more efficient production systems, Vanuatu is becoming a more attractive trading partner for countries seeking sustainable coconut oil and biofuel. Global demand for environmentally friendly energy sources is growing, and Vanuatu’s coconut oil industry is positioning itself to meet that demand.

The CNO Future Fund is working with trade partners and investors to develop export markets for locally produced biofuels and coconut-based products. This helps stabilize agricultural prices, provides steady income for farmers, and creates new business opportunities for local companies.

Note to readers: This article is part of Mint’s paid consumer connect Initiative. Mint assumes no editorial involvement or responsibility for errors, omissions, or content accuracy.

Want to get your story featured as above? click here!