The government is gearing up to sell shares in at least three State-Owned Enterprises (SOEs) to iTaukei investors and resource owners. This initiative is part of the government’s strategic objectives outlined in the Fiji National Development Plan (NDP) for 2025-2029 and Vision 2050.
The NDP serves as the Coalition Government’s framework for national development over the coming years, with long-term aspirations for Fiji over the next quarter-century. To enhance economic growth through increased private sector participation, the NDP highlights that certain SOEs are underperforming and require restructuring.
The targeted divestment includes Energy Fiji Ltd, Pacific Fishing Company (PAFCO), and Airports Fiji Ltd (AFL), specifically aimed at iTaukei investors and resource holders. The document notes that the presence of SOEs has often limited private sector investments, particularly in industries such as cattle farming, fish processing, and sugar milling, where private entities could operate more effectively.
It further mentions that heavy regulatory burdens and the high cost of doing business have constrained private sector involvement. By participating in several economic sectors through SOEs, the government has at times inhibited private investment. The plan seeks to boost private sector investments across all economic sectors while rationalizing the government’s role in economic activities. This approach is expected to create more opportunities for private investment, enhance efficiency, and drive Fiji’s economic growth towards a more robust trajectory.
According to the NDP, the total asset base of Government’s SOE portfolio has increased significantly from $8.4 billion in 2019 to over $9 billion in 2022, with major assets located in the infrastructure and transport sectors, including Airports Fiji Limited, Energy Fiji Limited, Fiji Ports Corporation Limited, and Fiji Airways. However, the 19 active SOEs contributed only 3.7 percent to the GDP during the 2010-2020 period, which is considerably lower than the 16-20 percent of gross fixed investment in the economy managed by SOEs. The government currently oversees a total of 25 SOEs.