Merchant Finance Pte Limited (MFL) has partnered with the Ministry of iTaukei Affairs to enhance support for iTaukei entrepreneurs by signing a Memorandum of Understanding (MoU). This collaboration aims to implement a government-backed interest subsidy for loans issued by MFL to indigenous resource owners. The initiative seeks to provide easier access to financing and foster economic opportunities for local business owners.
Pita Tagicakirewa, the Permanent Secretary for iTaukei Affairs, highlighted the importance of private sector partnerships in bolstering the economic prospects of iTaukei entrepreneurs. He remarked, “This agreement will enable MFL and the iTaukei Affairs Ministry to complement ongoing economic development initiatives while improving access to finance services and products for indigenous entrepreneurs.”
Under the MoU, MFL’s Vanua Finance will manage the government’s interest subsidy scheme designed to alleviate financial obstacles and encourage investments in vital sectors such as land subdivision, resource extraction, tourism, and commercial property development. This initiative is timely, particularly as MFL reports financing to 104 iTaukei-owned businesses with a total of $11 million in loans expected by the end of 2024.
Among these loans, 19 are eligible for interest subsidy, with seven already approved, totaling $329,217.63. The funded projects span various areas, including four land subdivisions consisting of 90 lots, a renewable energy project geared towards solar-powered refrigeration systems, and two tourism developments aimed at driving local economic growth.
MFL is actively seeking further approvals, with plans to submit additional loan applications in December 2024 and March 2025. The organization has committed to the transparent management of the subsidy funds, incorporating regular reporting and evaluation mechanisms to assess the program’s effectiveness.
This MoU aligns with previous initiatives focused on enhancing financial access for iTaukei resource owners, including specialized loan products for land subdivision and the establishment of a development bank. This partnership represents a positive stride towards the long-term economic empowerment and stability of the iTaukei community in Fiji. By promoting financial inclusivity and resource accessibility, the initiative holds promise for significantly enhancing the quality of life and driving community-led economic growth throughout the nation.
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