Access to working capital has emerged as a critical policy focus as Fiji enters 2026, with authorities and lenders recognising that liquidity, rather than long-term borrowing alone, will determine whether businesses can sustain growth in a volatile global environment.
Late in 2025, the Fiji Development Bank launched its Revolving Working Capital Term Loan, aimed squarely at easing cash-flow constraints for small and medium enterprises, agribusinesses and commercial operators. The facility allows businesses to draw down and repay funds flexibly, providing a buffer against seasonal fluctuations, delayed receivables and rising input costs.
This shift reflects lessons learned during the post-pandemic recovery. While capital expenditure lending supported expansion in tourism, construction and manufacturing, many firms continued to struggle with day-to-day liquidity. Working capital shortages have been a particular issue for exporters, retailers and agricultural producers facing longer payment cycles and higher freight costs.
The Reserve Bank’s late-2025 assessments showed that private-sector credit continued to expand, supported by ample system liquidity. However, policymakers acknowledged that lending needed to be better aligned with operational realities on the ground. Working capital finance, rather than asset-backed loans alone, is increasingly seen as essential to maintaining employment and preventing otherwise viable firms from scaling back activity.
The revolving facility complements broader government objectives under the National Development Plan, which emphasises enterprise resilience and regional participation. For rural businesses and cooperatives, access to short-term finance can determine whether produce reaches markets on time or whether inputs can be purchased ahead of peak demand periods.
As 2026 begins, the emphasis on working capital marks a pragmatic evolution in Fiji’s business finance landscape. Rather than prioritising headline investment numbers, policymakers are focusing on liquidity, continuity and productivity – factors likely to shape business confidence in the year ahead.
