This morning, my Twitter/X feed revealed something interesting that I believe most people will want to know more about—NFIS 2. Here, I’ll explain it in simple terms and share my thoughts on how to improve its implementation.
What is NFIS 2, and How Will It Benefit Vanuatu?
NFIS 2, or Vanuatu’s Second National Financial Inclusion Strategy, is a comprehensive plan designed to expand access to financial services—such as bank accounts, mobile wallets, and digital payments—to all Ni-Vanuatu, especially those in rural and outer island communities.
This initiative goes beyond simply having a bank account. It’s about ensuring people can save safely, pay bills without long travels, send money home easily, and access tools to grow small businesses. The goal is to make financial services affordable, accessible, and genuinely useful.
Where Did It All Start?
The journey toward financial inclusion in Vanuatu began with NFIS 1 (2018–2023), led by the Reserve Bank of Vanuatu (RBV) with support from UNCDF’s Pacific Financial Inclusion Programme (PFIP) and other development partners. NFIS 1 achieved several important milestones:
✅ Expanded mobile money pilots with Digicel and ANZ GoMoney
✅ Improved financial literacy initiatives
✅ Identified policy gaps in the financial ecosystem
Building on these challenges and successes, Vanuatu launched NFIS 2 in July 2025 to take the next significant step forward.
Who is Behind NFIS 2?
NFIS 2 is part of the Pacific Digital Economy Programme (PDEP), a joint effort led by:
International Organizations:
- UNCDF (United Nations Capital Development Fund)
- UNDP (United Nations Development Programme)
- UNCTAD (United Nations Conference on Trade and Development)
Funding and Support:
- European Union (EU)
- New Zealand Ministry of Foreign Affairs and Trade (MFAT)
- Australian Department of Foreign Affairs and Trade (DFAT)
Local Implementation: In Vanuatu, the strategy is locally driven by the Reserve Bank of Vanuatu (RBV) and the Ministry of Finance and Economic Management (MFEM).
Why Does This Matter for Vanuatu?
Over 75% of Vanuatu’s population lives in rural areas, often far from banks and ATMs. Many face significant challenges:
🚶 Long travel distances to access cash
💰 High costs for money transfers
💡 Low financial literacy rates
NFIS 2 aims to address these issues by:
✅ Expanding financial services in rural areas through agent banking and mobile money
✅ Boosting digital financial services (DFS) adoption so people can save and pay digitally
✅ Strengthening financial and digital literacy so people understand how to use these tools safely
This will empower various groups:
🌴 Farmers to receive payments securely
🌴 Market vendors to accept digital payments
🌴 Youth and women entrepreneurs to manage money and grow businesses
🌴 Families to save for emergencies and education
When Was It Launched?
NFIS 2 was officially launched in July 2025 in Vanuatu, building on five years of groundwork under NFIS 1 and aligning with the PDEP’s regional momentum across the Pacific.
How Will Vanuatu Benefit?
By implementing NFIS 2, Vanuatu aims to:
✅ Increase the number of adults with access to formal financial services
✅ Raise DFS usage by 50% by 2028
✅ Build resilience for climate and disaster impacts by improving financial preparedness
✅ Integrate financial inclusion with national digital ID systems and the modernized national payments system currently underway
Ultimately, NFIS 2 will help build a fairer, stronger, and more inclusive digital economy for all Ni-Vanuatu.
Looking Forward: The Role of Distributed Ledger Technology
Vanuatu’s launch of NFIS 2 represents a significant step toward building financial inclusion, expanding DFS, and empowering rural communities. However, to future-proof this strategy and maximize its impact, we should explore Distributed Ledger Technology (DLT) as part of the implementation approach.
Why DLT?
Traditional digital financial systems still rely on centralized databases, which can be:
🚨 Expensive to maintain
🚨 Vulnerable to single points of failure (power cuts, server issues)
🚨 Prone to reconciliation delays and errors
DLT offers significant advantages:
✅ Transparency
✅ Security
✅ Low transaction costs
✅ Instant settlement
✅ Auditability
In the Pacific region, where trust in financial systems, disaster resilience, and connectivity issues are key concerns, DLT could address many underlying challenges.
Why Hedera Hashgraph?
Among DLT options, Hedera Hashgraph is particularly suitable for Vanuatu and NFIS 2 goals because:
✅ It offers high transaction speeds (10,000+ TPS)—crucial for micro-transactions in rural areas
✅ Has low, predictable fees, ideal for the unbanked and small merchants
✅ Uses asynchronous Byzantine Fault Tolerance (aBFT), ensuring strong security
✅ Is energy-efficient, important for climate-vulnerable nations like Vanuatu
Use Cases for NFIS 2 with Hedera Hashgraph
1️⃣ Micro-Payments & Remittances
Enable instant, low-fee payments for market vendors, farmers, and small businesses. This would support women and youth entrepreneurs in rural areas with trustworthy, transparent transaction records.
2️⃣ Government-to-Person (G2P) Transfers
Disaster relief, school fee support, and social assistance could be delivered transparently and directly to recipients via wallets on Hedera, reducing leakage and ensuring aid reaches those who need it most.
3️⃣ Digital ID Integration
Using Hedera’s decentralized identity (DID) frameworks, Ni-Vanuatu could securely control their digital identity—a foundation for accessing DFS while protecting privacy.
4️⃣ Tokenization of Assets
Allow small-scale farmers or fishermen to tokenize harvests or catches for microfinancing or collective investments, unlocking new pathways for rural financial inclusion.
5️⃣ Transparent Aid Tracking
NGOs and government donors can track funding and project outcomes in real time, increasing accountability while reducing administrative overhead.
How to Start?
✅ Pilot small-value government payments (e.g., school subsidies) using Hedera-based wallets
✅ Collaborate with Digicel, Vodafone, or banks to explore integrating Hedera DLT in their DFS offerings
✅ Host a DLT + NFIS workshop with RBV, MFEM, and local tech communities to explore realistic use cases
✅ Encourage regional collaboration under PDEP to test interoperable DLT-based DFS for cross-border Pacific payments
Conclusion
NFIS 2 presents an excellent opportunity to lay the foundation for a resilient, transparent, and inclusive financial ecosystem for Vanuatu. By exploring DLT with Hedera Hashgraph, Vanuatu can:
✅ Reduce costs
✅ Improve transaction speed
✅ Build trust
✅ Future-proof its financial infrastructure
This approach will support the nation’s journey toward a digitally inclusive economy that serves all Ni-Vanuatu, regardless of their location or economic status.
Mattdotvu 
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