Development assistance in Fiji
Overview
Australia is committed to working with Fiji to deepen our economc cooperation. We have provided significant fiscal support to the Government of Fiji to help accelerate Fiji-led reforms, and 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) has also stepped 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: Inclusive Economic Growth
- Pacific Labour Mobility
- 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 2020-23 Australia provided approximately AUD223.5 million in general and targeted budget support to bolster 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 goal of the Partnership is to improve the competitiveness of the private sector in Fiji and to stimulate private investment.
The Partnership is working closely with business and the Government of Fiji to introduce significant direct investment into the economy and advise Fiji on establishment and maintenance of regulatory environment for improved private sector performance. The Partnership builds on the successes and the lessons of Phase 1 while pivoting to address new economic needs emerging in Fiji.
Related documents
Fiji Partnership review and management response (2020)
Market Development Facility: Inclusive Economic Growth
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 benefit 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 achieve the following results by 2026: reach 48,500 beneficiaries, leverage USD 5 million in private investment, and generate USD 18.5 million 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.
Fiji is now the largest participating country under the PALM scheme with 6070 workers in Australia at the end of September 2024. PALM scheme workers can on average send home $1,500 per month in savings. Remittances now make up a significant contribution to Fiji’s economy. In 2023, it was estimated that remittances were equivalent to 9.1% of Fiji’s GDP.
Australian Infrastructure Financing Facility for the Pacific (AIFFP)
- Australian Infrastructure Financing Facility for the Pacific (AIFFP) has committed over $145.3 million in loan and grant finance to Fiji for infrastructure development, including $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.
- Up to $5 million in financing for the Nadi Flood Alleviation Project, to address flooding risks in the country’s economic hub – a top infrastructure priority for the Government of Fiji.
- Grant financing of $115,000 to Fiji Ports Corporation Limited to support the development of Lautoka Port Master Plan to upgrade Lautoka Port and enhance port operations. This is additional to $380,000 committed to develop an options paper on redevelopment of the Lautoka foreshore.
- Up to $5 million to support the Namosi Hydropower Feasibility Study which will assess the feasibility of generating up to 50MW over three sites in the Namosi area, supporting Fiji’s transition to renewable energy.
- $7.25 million (with further $1 million under biliteral ODA funding) under Fiji Rural Electrification Fund (FREF). FREF extends rural electrification using mini-grid solutions to remote and maritime communities that do not have access to modern electricity.
Fiji Social Infrastructure Program (2024-27)
The Australian Government has made an initial allocation of $22.25 million to the Fiji Social Infrastructure Program (FSIP) to upgrade school and health infrastructure. FSIP will also build capacity of Asset Management Units under Ministries of Education and Health.
Shipbuilding and Ship Repair Study
Australia is funding a study to support the Fiji Government’s objectives to revitalise its shipbuilding and ship repair industry. Consultants, Arup Australia commenced in September 2024 to deliver phase 1 of the study that will include a market analysis, a skills and infrastructure assessment and concept designs.