The International Finance Corporation (IFC), an integral member of the World Bank Group that focuses on private sector development, has announced a partnership with BRED Bank (Fiji) Pte Limited to foster growth and job creation in Fiji by enhancing access to finance for small and medium enterprises (SMEs).
SMEs play a crucial role in driving economic growth and employment in Fiji. However, these businesses often face significant challenges in obtaining the financial resources necessary for expansion, hiring, and innovation. To address this gap, the IFC will introduce an unfunded risk-sharing facility to BRED Bank (Fiji), providing a maximum risk amount of approximately $6 million, equivalent in Fijian dollars, under its Small Loan Guarantee Program. This initiative, supported by the International Development Association’s Private Sector Window, aims to enable BRED Bank to extend new loans to SMEs, ultimately building a loan portfolio that could reach up to $12 million in equivalent Fijian dollars.
In addition to financial support, the IFC will offer advisory services to help BRED Bank improve its lending practices. The partnership is expected to have wide-reaching economic benefits in Fiji, directly contributing to job creation within businesses and indirectly through the stimulation of their supply chains and broader economic activities. Notably, this collaboration will specifically enhance lending capacities for rural SMEs, especially those on outer islands and in remote inland regions where financial services are limited.
Rural SMEs, which are predominantly engaged in labor-intensive sectors like agriculture, fisheries, and small-scale tourism, often contend with significant financing challenges. Improved access to capital will empower these businesses to expand their operations and hire more employees.
Pierre Tastet, CEO of BRED Bank (Fiji), expressed confidence in the bank’s ability to bolster the SME sector, stating, “With a strong and growing presence in Fiji, BRED Bank is well-positioned to support the expansion and resilience of our SME sector. Our longstanding global partnership with the IFC reflects a shared commitment to sustainable growth.” He emphasized that this collaboration enhances their capacity to provide financing and reinforces a relationship-driven approach that delivers tailored solutions to local businesses.
Sarvesh Suri, IFC’s Regional Vice President for Asia and the Pacific, highlighted the constraints SMEs face in raising capital and the significant impact of this partnership on closing the financing gap in Fiji. He stated, “With this facility, IFC aims to help close Fiji’s financing gap and support these vibrant businesses to create more jobs and growth.”
This initiative aligns with ongoing support from the Australian and New Zealand governments, whose partnerships with the IFC have played a pivotal role in strengthening Fiji’s private sector and enhancing financial markets throughout the Pacific region. Such collaborative efforts signify a promising future for SMEs in Fiji, paving the way for substantial economic development and resilience.
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