The Government plans to sell shares in at least three State-Owned Enterprises (SOEs) to iTaukei investors and resource owners. This initiative aligns with the goals outlined in the Fiji National Development Plan (NDP) for 2025-2029 and Vision 2050.
The NDP serves as the Coalition Government’s strategic framework for nation-building in the medium term, focusing on the vision for Fiji over the next 25 years. As part of efforts to enhance private sector involvement to stimulate economic growth, the NDP has identified SOEs as underperforming and in need of restructuring.
The government plans to divest Energy Fiji Ltd, Pacific Fishing Company (PAFCO), and Airports Fiji Ltd (AFL) to iTaukei investors and resource owners. The NDP highlights that SOEs have overshadowed private sector investments, particularly in sectors better suited for private ownership and operation, such as cattle farming, fish processing, and sugar milling.
The document acknowledges that private sector growth has been hampered by excessive regulatory constraints and high operational costs. Furthermore, the Government’s involvement in various economic sectors through SOEs has often limited private investment opportunities.
To unlock new avenues for private investment, enhance efficiency and productivity, and propel Fiji’s economic growth, the Government aims to streamline its role in economic activities by gradually divesting from SOEs where feasible.
According to the NDP, the total asset base of the Government’s SOE portfolio increased significantly from $8.4 billion in 2019 to over $9 billion in 2022, with the largest assets held in the infrastructure and transport sectors, including Airports Fiji Ltd, Energy Fiji Ltd, Fiji Ports Corporation Ltd, and Fiji Airways.
Despite this, the 19 active SOEs contributed only 3.7 percent to GDP from 2010 to 2020, significantly lower than the estimated 16-20 percent of gross fixed investment in the economy managed by SOEs. The Government currently oversees a total of 25 SOEs.