Pacific Island Countries face fragile digital transformation push: Carnegie report

Pacific Island Countries (PICs) are accelerating efforts to digitize government services and digital tools as engines of economic growth, resilience and global connectivity. But progress remains uneven, with stronger economies like Fiji, Tonga and Samoa leading the way, while smaller states such as Tuvalu and the Solomon Islands grapple with geographic isolation, climate vulnerability and limited resources.

A new report from the Carnegie Endowment for International Peace highlights the fragile promise of digital transformation across the region, in The State of Digital Transformation in Pacific Island Countries.

In 2023, ICT ministers from 13 PICs signed the Lagatoi Declaration, committing to digital goals on six priority areas: digital transformation, innovation and entrepreneurship, digital security and trust, digital capacity building and skills development, regional cooperation and representation.

Infrastructure development has expanded internet penetration through subsea fiber cables and satellite services like Starlink, though natural disasters continue to disrupt connectivity. Fiji has advanced digital payment and registry systems, while Tuvalu is pursuing a bold digital nationhood strategy to preserve governance and identity as rising seas threaten its territory.

Government-led initiatives are central to the push, with many PICs equating digital transformation with digitizing public services. However, some projects have drawn criticism for being imposed top-down without broad consultation. The report highlights Palau’s introduction of a stablecoin to a population where over 40 percent lack internet access. The decision to implement TongaPass, a foundational digital ID system enabled by the MOSIP open-source platform, is questioned for the executive decision made at the prime minister office’s level, which circumvented deliberation “on the problem statement for a national ID system in the first place.”

The report warns that digitalization is heavily donor-driven, with Australia, New Zealand, the U.S., EU and China funding infrastructure but often neglecting maintenance and local capacity-building. Fiji and Papua New Guinea (PNG) are less dependent thanks to stronger institutions. Another challenge is talent flight, as skilled professionals migrate to Australia and New Zealand, leaving PICs with limited human capital to sustain digital systems.

Country-specific drivers vary. Fiji is focused on building a digital economy and improving service delivery. Tuvalu is driven by existential climate threats. The Solomon Islands is working to move away from a cash-based economy while integrating traditional trust systems into digital identity verification.

The Carnegie report concludes that Pacific Island nations must balance donor reliance with sovereign digital development, strengthen regional cooperation, and address talent retention. Their varied approaches offer lessons for other small, resource-constrained states.

The PICs’ digital transformation is advancing but remains fragile. Success will depend on building resilient infrastructure, fostering local capacity, and tailoring digital strategies to each nation’s unique context.

Australia announces support for PNG digital government, cloud

Australia has pledged AU$1.5 million (US$967,800) to assist PNG’s cloud infrastructure and digital government systems. The announcement was made by Australian High Commissioner to Papua New Guinea Ewen McDonald at the 2025 Digital Transformation Summit.

McDonald said the partnership recognizes the transformative potential of digital services and confirmed that Australia will work closely with PNG’s DICT to develop interoperable, secure and sustainable solutions. PNG has maintained close ties with Australia over its digital ID, bolstering cooperation as it implements a Digital Identity and Trust Framework.

In addition to financial support, Australia will partner with PNG to run the largest National Cyber Security Exercise. McDonald emphasized the importance of preparing for worst-case scenarios, such as natural disasters or supply chain disruptions, and stressed that governments and businesses must strengthen their ability to respond to cyber threats that could have severe national security and economic consequences.

PNG launches digital public service system

The Papua New Guinea Government has rolled out Service PNG, a new integrated digital public infrastructure designed to modernize service delivery and advance digital governance.

The initiative is a key part of the country’s Digital Government Plan 2023–2027 bringing together identity, data and services under a unified ecosystem. Supported by the National Cybersecurity Policy and Data Governance Policy, Service PNG aims to streamline interactions between citizens, businesses and government agencies.

Steven Matainaho, Secretary for the Department of Information and Communication Technology (DICT), said the new system is more than an app, describing it as “an ecosystem where identity, data, and services finally work together for every citizen,” reports Post-Courier.

Papua New Guinea had registered around 3.8 million people for its national digital identity, SevisPass, as of mid-October.

The system uses a three-tier Digital ID framework. Tier 1 verification via selfie biometrics and phone number. Tier 2 verification is linked to the national ID; and Tier 3 verification with police clearance. Service PNG will connect trusted sources including civil registry, police, banks, telcos and schools. The PNG government promises consent, encryption and full auditability.

Officials say the platform will eliminate queues and paperwork by enabling citizens to apply for passports, police clearances and land records via a single portal. Telcos will be able to instantly onboard customers with verified identities.

The government projects that the rollout could bring two to three million citizens into the formal economy, boost GDP through digital transactions and tax compliance, create thousands of jobs in tech and finance, and improve access to health, education and social protection services.

Article Topics

Australia  |  digital government  |  digital ID  |  government services  |  Pacific Islands  |  Papua New Guinea