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Kiribati has launched a Virgin Coconut Oil (VCO) Project backed by India, aimed at expanding value addition in the country's coconut sector, generating new livelihood opportunities and supporting sustainable economic growth across rural communities.
The initiative, unveiled in South Tarawa on September 5, is financed with US$900,000 from the India-UN Development Partnership Fund and is being implemented by the United Nations Development Programme (UNDP). The project seeks to enhance the economic value of Kiribati's abundant coconut resources by promoting local processing rather than relying primarily on raw exports.
Under the programme, India will support the establishment of Virgin Coconut Oil processing plants on the islands of Nonouti and Teraina. The project also encompasses training and capacity-building initiatives designed to equip local communities with the skills needed to manage processing operations and strengthen the sector over the long term.
According to the Indian High Commission in Fiji, the initiative is expected to create new economic opportunities for farmers, women's cooperatives and rural communities by enabling higher-value coconut products to be produced within Kiribati. The mission stated that the project reflects India's continued commitment to South-South cooperation, locally driven development and livelihood-focused partnerships in the Pacific region.
The launch ceremony was attended by Kiribati President 'Taneti Maamau', senior government representatives, UNDP officials, industry stakeholders and community members, underscoring broad institutional support for the initiative.
Addressing the gathering, Indian High Commissioner 'Suneet Mehta' said that 'local processing would allow a larger share of the economic value generated from coconuts to remain within Kiribati'. He noted that the project is expected to benefit farmers, suppliers, small businesses, women, young people and communities in the country's outer islands. Mehta also stated that 'development initiatives are most effective when they are locally owned, managed and designed around local needs'.
'Tangariki Reete', Kiribati's Minister for Tourism, Commerce, Industry and Cooperatives, said the project supports the country's efforts to diversify its economy while strengthening the coconut industry. She stated that the initiative aligns with the Kiribati 20-Year Vision and the National Development Plan 2024–2027, translating government policy into practical action aimed at building a wealthier, healthier and more peaceful nation.
The minister also highlighted the importance of capacity building and sustained investment in the coconut sector as Kiribati seeks to move beyond traditional copra production through value addition and product diversification. The UNDP said the initiative directly supports national priorities to expand the coconut industry's contribution to economic development and rural livelihoods.
Source: The Wave Andaman