Vanuatu is an archipelagic nation of 83 islands, extending over 1000 kilometres in a north-south direction between the equator and the tropic of Capricorn. It lies some 2000 kilometres to the northeast of Brisbane in the Coral Sea, at similar latitudes to Cairns in North Queensland. The population of Vanuatu is approximately 263,000. Port Vila, on the island of Efate, is the capital.
Formerly known as the New Hebrides, Vanuatu was jointly governed by British and French administrations before attaining independence on 30 July 1980.
Vanuatu has a unicameral 52-member parliament, elected to a four-year term by universal adult suffrage. The president of the republic (constitutional head of state) is elected for a five-year term through secret ballot by an electoral college comprising members of parliament and the presidents of Vanuatu's six provincial governments. The current President, His Excellency Reverend Womtelo Baldwin Lonsdale, was elected on 22 September 2014.The prime minister is elected by parliament from among its members by secret ballot.
Following national elections on 22 January 2016, the parliament elected Charlot Salwai Prime Minister of Vanuatu on 11 February 2016. Prime Minister Salwai’s governing coalition currently holds 38 of the 52 seats. In the previous parliament Vanuatu had four prime ministers: Moana Carcasses Kalosil from 23 March 2013 until 15 May 2014; Joe Natuman from 15 May 2014 until 11 June 2015; and Mr Kilman twice, from 19 November 2012 to 21 March 2013 and 11 June 2015 to 11 February 2016.
Australia has a close relationship with Vanuatu. Australia is an important economic partner for Vanuatu, providing the country with the majority of its tourists, foreign direct investment and aid. There is also a significant resident population of Australians (approximately 3000). Australia and Vanuatu enjoy a very broad range of links at government, business and community levels. Australia has a High Commission in Port Vila and the Vanuatu Government established a High Commission in Canberra in March 2012.
Australia is Vanuatu's largest bilateral aid donor. The estimated Australian aid budget for Vanuatu for financial year 2015-16 is $60.5 million. Australian aid is governed by the Australia–Vanuatu Partnership for Development, which focuses on improving economic governance, infrastructure, education, health and law and justice. We work with a range of partners including the Vanuatu Government, the private sector and community organisations.
The Australian Federal Police provides assistance to the Vanuatu Police Force as part of the Vanuatu Policing and Justice Support Program. Australia also has a Defence Cooperation Program with Vanuatu, which was established in 1983. Australia assists Vanuatu in maintaining and operating its Pacific Patrol Boat (the RVS Tukoro), donated by Australia in 1987.
Most of Vanuatu's population lives in rural areas where subsistence farming, fishing and production of cash crops such as kava, coconut and cocoa are the main sources of livelihood. Goods exports are dominated by agricultural products, particularly kava, coconut products, beef and cocoa. Vanuatu's economic growth has recently been driven largely by tourism and construction. Tourism and tourism-related services sectors (wholesale and retail trade, hotels and restaurants, and transport and communication) account for approximately 40 per cent of GDP and one third of people in formal employment. Construction activity is driven by private-sector retail, residential development and a number of donor-funded construction projects mostly on the island of Efate, particularly in Port Vila. The overall economic impact of Tropical Cyclone Pam has been significant, with real GDP expected to decline in 2015. In 2015 Vanuatu’s estimated GDP per capita was US$2,872 and estimated real GDP growth was -2 per cent.
Trade and investment
Australian merchandise exports to Vanuatu in 2014 totalled $77 million.
Australia is the major source of foreign investment in the Vanuatu economy with a focus on tourism, finance and construction. Australian investments in Vanuatu totalled $169 million in 2014. Two-thirds of long stay tourists to Vanuatu and almost all cruise ship passengers are Australian.
Vanuatu participates in the Seasonal Worker Programme (SWP). Under the SWP, workers from Pacific countries are recruited to work in Australia in horticulture and other sectors to meet seasonal harvest needs. Vanuatu is the second highest contributor of workers to the program.
Tropical Cyclone Pam
Tropical Cyclone Pam caused widespread damage to Vanuatu in March 2015. Australia is working closely with the Government of Vanuatu to support Vanuatu’s early and long-term recovery. Australia provided humanitarian assistance, valued at more than $10 million, to Vanuatu to support the immediate response to the cyclone and $5 million to respond to early recovery priorities. Australia has committed a further $35 million to support Vanuatu’s long-term recovery. Further details on Australia's contributions through development assistance to Vanuatu
High level visits
July 2015: An Australian parliamentary delegation visited Vanuatu. The delegation comprised Senators, the Hon Ian Macdonald and Janet Rice, and Jane Prentice MP.
July 2015: The Minister of Foreign Affairs, International Cooperation and External Trade, the Hon Serge Rialuth Vohor, visited Australia to attend the Pacific Islands Forum Foreign Ministers Meeting in Sydney.
July 2015: The Governor-General, the Honourable Sir Peter Cosgrove AK MC (Retd) and Lady Cosgrove visited Vanuatu (Port Vila and Tanna) to view progress in Vanuatu’s recovery from Tropical Cyclone Pam and the impact of Australian support. The Governor-General met with the President, His Excellency Reverend Womtelo Baldwin Lonsdale, and the Prime Minister, the Hon Sato Kilman Livtuvanu.
March 2015: Minister for Foreign Affairs, Julie Bishop, visited Vanuatu following Tropical Cyclone Pam. The Foreign Minister met the Prime Minister, the Hon Joe Natuman, then Minister of Foreign Affairs, International Cooperation and External Trade , the Hon Sato Kilman Livtuvanu, and then Minister of Climate Change Adaptation, Meteorology, Geo-Hazards, Environment and Energy, the Hon James Bule.
August 2014: Then Minister of Foreign Affairs, International Cooperation and External Trade, the Hon Sato Kilman Livtuvanu visited Australia. He met the Minister for Foreign Affairs, the Hon Julie Bishop.
April - May 2014: A delegation from the Senate Standing Committee on Foreign Affairs, Defence and Trade visited Vanuatu. The delegation comprised Senators Ursula Stephens, David Fawcett, Anne McEwen and Helen Kroger.
December 2013: Minister for Foreign Affairs, the Hon Julie Bishop, led a bipartisan delegation to Vanuatu which included Parliamentary Secretary to the Minister for Foreign Affairs, Senator the Hon Brett Mason; Opposition Foreign Affairs Spokesperson, the Hon Tanya Plibersek; Opposition Parliamentary Secretary for Foreign Affairs, the Hon Matt Thistlethwaite; and Ambassador for Women and Girls, Natasha Stott Despoja AM.
More information on development assistance to Vanuatu.