Fiji’s Trade Minister, Manoa Kamikamica, has unveiled a robust investment pipeline valued at approximately three billion dollars, marking a significant surge in investor interest across various sectors. Kamikamica highlighted renewable energy, commercial agriculture, tourism, and the expansion of established ventures like Fiji Water as key areas witnessing heightened attention from investors.
In a bid to further facilitate investment, Kamikamica disclosed the establishment of an Investment Facilitation Committee by the government. This committee is charged with identifying and addressing barriers to investment in Fiji, with a primary goal of enhancing the ease of doing business in the country.
Addressing concerns over investment hurdles, Kamikamica recounted a recent incident involving a stalled project at Nadi International Airport. The project, backed by an investor who had injected at least $800 million into Fiji over the years and contributed around $30 million in foreign exchange annually, caused widespread concerns about the treatment of key investors in the country.
Taking swift action, Kamikamica collaborated with fellow cabinet minister Viliame Gavoka and the Prime Minister to expedite the approval process for the investment project, emphasising the government’s commitment to resolving such issues promptly to maintain investor confidence.
The Minister’s remarks underscore the government’s proactive approach to attract and retain investments, recognizing the pivotal role played by foreign and domestic investors in driving economic growth and development. With ongoing efforts to streamline investment processes and eliminate obstacles, Fiji aims to foster a conducive environment that encourages both local and international investors to explore opportunities within the country’s burgeoning sectors.
On the global front, foreign direct investment (FDI) flows in 2023 saw a modest increase of 3 per cent to approximately $1.37 trillion, defying earlier recession concerns as financial markets performed well, according to the United Nations Conference on Trade and Development (UNCTAD). Looking ahead to 2024, a modest increase in FDI flows is anticipated, with stabilisation of financing conditions projected for international investment deals.
Domestically, Fiji’s economy has remained robust, supported by a thriving tourism sector, strong remittances, and resilient domestic demand, according to the Reserve Bank of Fiji’s December Economic Review. Despite challenges from slower growth in major trading partner economies and elevated price pressures, Fiji’s economy has shown healthy activity.
Indicators for investment activity in Fiji have displayed signs of recovery, albeit at a gradual pace. Commercial banks have reported a 29.6 per cent annual increase in new lending for investment purposes, primarily driven by lending to private individuals, building and construction, and real estate sectors. Additionally, the value of work put-in-place increased by 7.8 per cent in the third quarter, and leading indicators for construction activity, such as building permits issued, improved by 17.1 per cent cumulative to the third quarter.
These developments underscore Fiji’s resilience amidst global economic challenges, with efforts underway to bolster investment and economic growth domestically while navigating external uncertainties.
