Fiji’s upcoming investment projects are promising, yet the country must urgently address the existing skills shortages in the construction sector. This insight was shared by Dr. Kishti Sen, the senior economist for the Pacific at ANZ, during a media roundtable discussion. He forecasts that private investment will significantly contribute to Fiji’s GDP growth in 2025 and 2026.
Dr. Sen noted that an additional $600 million in spending is anticipated next year from emerging private investments. However, he emphasized that the labor constraints in the construction and other sectors such as business services and mining are currently hindering progress. Despite these challenges, he remains optimistic that these industries will flourish as the overall economy improves.
He stated, “New investment is vital, despite existing labor constraints. Once several new projects kick off, these sectors are expected to gain momentum.” Dr. Sen suggested that Fiji might have to look into importing labor to maximize its business investment potential and alleviate pressure on its labor capacity. He also recommended that the Department of Immigration streamline its processes to hasten the approval of work permits.
According to Kamal Chetty, the CEO of Investment Fiji, there are presently 27 projects valued at $1 billion in the construction phase, which are expected to commence operations in the coming years. An additional 20 projects worth $1.6 billion are anticipated to begin construction soon, provided that all necessary approvals are obtained timely.
Furthermore, the Fiji Bureau of Statistics reported that the total estimated value of construction work completed last year was $557.9 million, reflecting an increase of $31.8 million (or 6 percent) from 2022’s figure of $526.1 million.