Development assistance in Fiji
Overview
Australia is committed to supporting Fiji's ongoing economic recovery from the severe impacts of COVID-19. We have provided significant fiscal support to the Government of Fiji and are supporting Fiji’s economic recovery from the COVID-19 downturn. We are working with partners, including banks, to assist micro, small and medium enterprises to access finance; develop new markets and support Fiji’s economic diversification. The Australian Infrastructure Financing Facility for the Pacific (AIFFP) is also stepping up its activities in Fiji to support Fiji’s private and public infrastructure needs.
Related initiatives
- Budget support
- DFAT-IFC partnership: supporting private sector development
- Market Development Facility (MDF)
- Pacific Labour Mobility
- Pacific Horticultural and Agricultural Market Access - PHAMA Plus
- Australian Infrastructure Financing Facility for the Pacific (AIFFP)
- Supporting programs
Budget support
Recognising the severe impact of COVID-19 on Fiji's economy, Australia provided significant budget support grants to the Government of Fiji during the pandemic. Since 2019-20 Australia has provided AUD287.5 million in general budget support to bolsterer Fiji’s key reform and social protection initiatives. This is in addition to the 981.6 million in ODA that has been provided to Fiji since 2015-16. Australia’s budget support enables implementations of Fiji’s priorities in social and climate resilience, health and infrastructure, inclusive growth and fiscal sustainability.
DFAT-IFC partnership: supporting private sector development
Up to $8 million 2021-2025
We are partnering with the International Finance Corporation (IFC) to support the Fiji Government to achieve its economic development priorities of improving small-medium enterprise performance, building Fiji's international trade competitiveness and stimulating inclusive private sector-led growth. The key goal of the partnership is to improve the competitiveness of the private sector in Fiji and to stimulate and inclusive and sustainable economic recovery from COVID-19 by increasing private investment.
The partnership focuses on creating concrete opportunities for inclusive, sustainable private investment in support of COVID-19 recovery and medium-term economic growth through targeted advisory interventions. Importantly, the partnership seeks to lock in resilient, gender- and climate-smart private sector development.
The partnership builds on the successes of, and learning from, phase 1, whilst pivoting to address new needs emerging from the COVID-19 pandemic.
Related documents
| Name of document | Year published |
|---|---|
| Fiji Partnership review and management response | 2020 |
Market Development Facility (MDF)
Up to $33.3 million 2017 – 2027
Market Development Facility (MDF) is a multi-country program that began in Fiji in 2011 and has since expanded to Timor Leste (2012), PNG and Sri Lanka (2015). MDF stimulates business innovation and private sector investment for development outcomes, particularly poverty reduction and women's economic empowerment.
MDF's outcomes are: (i) increased competitiveness of sectors that involve poor men and women; and (ii) supporting local firms to create new market opportunities that benefits poor people. It aims to achieve these outcomes by facilitating partnerships with market actors (public and private) to address market failures and facilitate systemic, market-wide changes that are sustained by market actors after MDF's activities conclude. MDF aims to implement approximately 65 partnerships and 12 formal influencing events to achieve the following results by 2026: reach 48,500 beneficiaries, leverage USD5m in private investment, and generate USD18.5m in market transactions and 2,250 jobs.
Pacific Labour Mobility
Fiji joined the Pacific Labour Scheme in April 2019.
In April 2022, Australia's Seasonal Worker Programme and Pacific Labour Scheme were consolidated, reformed and replaced by a more flexible and efficient single program called the Pacific Australia Labour Mobility (PALM) scheme.
Pacific Horticultural and Agricultural Market Access - PHAMA Plus
Up to $36 million, 2018 – 2022
PHAMA Plus has identified kava and root crops as the lead commodities that it will focus on. In kava, PHAMA Plus aims to develop a self-regulating and profitable kava industry supplying a diverse range of products/markets as a result of increased volume of supply and importing country confidence through adherence to export compliance. In Root Crops, PHAMA Plus would like to see improved farming practices to produce high volume, high quality taro and exporters who are willing to invest in processing and/or value add that meets export compliance to deepen existing or to access new markets.
Australian Infrastructure Financing Facility for the Pacific (AIFFP)
Australian Infrastructure Financing Facility for the Pacific (AIFFP) is providing over $140.4 million in loan and grant finance to Fiji for infrastructure development.
- In June 2021, the AIFFP, alongside ANZ Fiji, signed a FJD106 million ($68 million) loan to Airports Fiji Pte Ltd (AFL) – the main provider of air services in Fiji. The loan funded essential maintenance and capital works at Nadi International Airport and several outer islands’ airports, refinances existing debt and supports the infrastructure priorities of AFL.
- In 2022, AIFFP provided USD50.3 million ($72 million) in loan and grant financing to the Fiji Transport Infrastructure Restoration Project. The project will support renewal of over 1.5 million square metres of road and upgrades for nine key bridges in Fiji.
- The AIFFP is also financing up to $5 million for flood mitigation work for the Nadi Flood Alleviation Project, a top infrastructure priority for the Government of Fiji.