The Fijian government recently announced that the responsibility for the construction of 3,000 homes for low-income earners will transition from the International Finance Corporation (IFC) to the Housing Authority of Fiji. Deputy Prime Minister and Minister for Finance, Prof. Biman Prasad, clarified that this decision arose during the Cabinet meeting on Tuesday, which concluded that the existing public-private partnership with IFC was no longer financially feasible.

Prof. Prasad emphasized that the government’s move should not be perceived as abandoning the affordable housing initiative. “Nowhere in the decision of Cabinet do we say that government is shelving the affordable housing project for the low-income people,” he stated. The plan is to return five identified sites to the Housing Authority, which includes locations in Raiwaqa, Nepani, Wainibuku, Davuilevu, and two sites in the Western Division at Tavakubu and Tavua.

The Cabinet’s endorsement to close the public-private partnership was influenced by the project’s delays and rising costs, which posed challenges for both the government and prospective homeowners. By opting for a more direct management approach through the Housing Authority, the government aims to create around 1,500 residential lots and units that will be available for purchase by low- and middle-income Fijians.

Past discussions highlighted the pressing need for affordable housing in Fiji, driven by urbanization and a youth population demanding suitable living conditions. The government’s commitment to seeking alternative solutions gives hope that despite the challenges faced with the previous model, access to affordable housing will remain a priority.

With approximately 1,500 residential lots projected to come into the market following this transition, not only does this decision signal a more pragmatic approach, but it also provides optimism for low- to middle-income families seeking homes in Fiji’s evolving urban landscape.