Reliable power supply is essential to enhancing the quality of life and good performance of the power sector and reliable electricity services are vital to promoting private sector investments to diversify the economy and achieve sustainable economic growth.
Samoa’s narrow economy and limited resources create a difficult environment for business, and make the country highly vulnerable to global economic shocks. Frequent natural calamities exacerbate this vulnerability, as demonstrated by the cascade of negative impacts on the country’s economy by the global financial crisis in 2008, a tsunami in 2009, and Tropical Cyclone Evan in 2012.
At project appraisal in 2007, 35% of Samoa’s population worked overseas and remittances constituted 17% of the gross national income. Because of this, the government deemed it important to introduce the use of information and communication technology (ICT) at secondary education level.
Samoa, a small and remote Pacific island country, is particularly vulnerable to economic and natural disaster shocks. In 2008−2009, it suffered severely from these shocks as, following the global economic crisis that caused its tourism, manufacturing, and agriculture receipts to fall, a tsunami hit the country.