The iTaukei Land Trust Board (TLTB) is set to establish a development bank for resource owners within the next two years. This initiative was revealed by TLTB CEO Solomoni Nata at the Indigenous Resource Owners’ Forum in Lami yesterday.
Nata explained that TLTB collects around $120 million in lease monies annually, excluding fees, and retains 10 percent of that amount, which totals approximately $12 million each year. “We have now created a wealth fund called the iTaukei Wealth Fund, where we pool this money,” he said.
Additionally, TLTB has launched the iTaukei Development Facility, a unit that will manage the wealth fund. The plan is to eventually merge this facility with the wealth fund to form the development bank, Nata stated.
For now, as the groundwork for establishing a formal banking entity continues, the iTaukei Development Facility is providing loans to landowners. The first 10 recipients of these loans will be announced today. “We are offering very low-interest rates of around 2.5 percent, with repayment periods of two to three years,” Nata noted.
There is currently no cap on loan amounts, allowing landowners to borrow sums ranging from $1,000 to $100,000 for various projects, including property investments, expired lease acquisitions, and grazing activities. For instance, one group in Sawakasa used $60,000 to purchase milking machines to aid in milking 100 cows twice daily. Other proposals include launching gravel quarrying businesses.
Nata emphasized the importance of having a solid business plan, as lease monies can be used as security in case of default. TLTB is collaborating with Merchant Finance, Fiji Development Bank, and other entities to develop capacity in the banking sector.
“We are constructing the structure that has already been approved by the board. We have a roadmap, and by late next year or within two years, we anticipate forming a subsidiary company which will operate as the bank. After that, we will focus on our core business,” Nata concluded.