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The Ministry of Finance and Economic Development (MFED) of Kiribati plays a pivotal role in shaping and overseeing both the public and private sectors to foster sustainable economic growth and resilience.

Public Sector Overview:

Kiribati's public sector is notably expansive, with government expenditure constituting a significant portion of the nation's GDP. This sector encompasses central and local governments, as well as numerous state-owned enterprises (SOEs) operating in areas such as utilities, transportation, and financial services. To enhance efficiency and transparency, MFED has implemented reforms including the adoption of the Integrated Financial Management Information System (IFMIS), which facilitates electronic tracking of fiscal spending and improves public financial management. Additionally, the establishment of the SOE Monitoring and Advisory Unit (SOEMAU) aims to strengthen oversight and governance of SOEs, ensuring they operate on a more commercial and sustainable footing.

Private Sector Overview:

The private sector in Kiribati is relatively underdeveloped, contributing to around 30% of total employment. Challenges such as geographical isolation, limited infrastructure, and access to finance hinder its growth. MFED, in collaboration with development partners, is actively working to create a more conducive environment for private enterprise. Initiatives include modernizing business laws, establishing an online business registry, and supporting the development of financial institutions to improve access to credit. Efforts are also underway to diversify the economy beyond traditional sectors like fisheries and copra production, aiming to stimulate private sector-led growth and job creation.

Through these concerted efforts, MFED seeks to balance the roles of the public and private sectors, ensuring efficient service delivery while promoting a vibrant and inclusive economy.