The opening day of the Tonga Development Summit 2025 was marked by a powerful and thought-provoking speech by Mrs Lita Havea Kami, a distinguished banking executive with over 30 years of experience, including a decade as Managing Director/CEO. Her remarks resonated with many attendees as she highlighted several pressing issues that have long been raised by Tonga Independent, underscoring the urgent need for government intervention.

Economic Landscape: A Surge in Chinese-Owned Businesses

Mrs Kami’s observations of Tonga’s economic transformation over recent years pointed to an increase in new homes, cars, and, most notably, the rapid expansion of Chinese-owned businesses. She expressed concern over the clustering of these businesses, which appears to defy standard economic principles of location. “We see these huge Chinese shops right across from each other or next to a smaller one. It just doesn’t make business sense,” she stated.

She questioned whether these businesses were securing land as a long-term strategy, raising concerns about the impact this might have on Tongan entrepreneurs looking to establish their own enterprises. There is already a law governing the spacing of stores, yet enforcement appears lax, allowing these businesses to cluster in ways that undermine market diversity.

To address this, stricter zoning regulations must be enforced, ensuring that businesses are distributed strategically across different areas rather than concentrated in a few locations. The government should also consider implementing policies that designate specific zones for different types of businesses, promoting a more balanced and competitive marketplace. Additionally, incentives could be introduced to encourage local entrepreneurs to establish businesses in underdeveloped commercial areas, fostering broader economic participation.

Tonga’s Dependence on Aid and Remittances

A key focus of Mrs Kami’s speech was Tonga’s persistent reliance on aid and remittances. She recalled a conversation with a fellow panellist who bluntly stated, “We cannot wean ourselves off aid and remittances—it’s a reality for small island nations.” While acknowledging this economic reality, she challenged the government and citizens to consider whether remittances are being used productively.

“How can we ensure that remittances are invested into businesses that drive our economy?” she asked. Her remarks suggested that government support, similar to models in Fiji where small businesses receive targeted assistance, could be a viable solution. This would empower Tongans to engage in entrepreneurship rather than rely solely on external financial flows.

Land Use and Agricultural Concerns

Another pressing issue Mrs Kami raised was the increasing conversion of agricultural land into residential plots. She expressed frustration over the trend, emphasizing that it goes against the original intent of Tonga’s land system. “Our first king ensured every family had land to sustain themselves. But now, more and more tax allotments are being sold off, leading to subdivisions where homes are built on agricultural plots.”

This shift has serious consequences. As Tonga looks to commercialize agriculture and boost exports, the presence of residential properties near farmlands complicates matters. “We can’t spray pesticides or apply necessary treatments when there are homes around,” she noted, warning that this could affect food security and economic development.

To mitigate these challenges, the government must strengthen land-use policies and enforce zoning regulations to prevent excessive conversion of agricultural land. Additionally, the introduction of agricultural protection zones—areas designated specifically for farming—could help safeguard food production while preventing residential encroachment. Developing urban planning guidelines that balance residential and commercial growth with the need to maintain arable land is critical for sustainable development.