The government is set to sell shares in at least three State-Owned Enterprises (SOEs) to iTaukei investors and resource owners. This move aligns with the government’s 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 and sets a vision for Fiji’s future over the next 25 years. It recognizes that SOEs have been underperforming and highlights the need for their rationalization to promote private sector participation and stimulate economic growth.
The planned divestment includes Energy Fiji Ltd, Pacific Fishing Company (PAFCO), and Airports Fiji Ltd (AFL) to the iTaukei community. The NDP points out that the presence of SOEs has often hindered private sector investments, especially in fields like cattle farming, fish processing, and sugar milling, due to regulatory burdens and high operational costs.
The government acknowledges that its extensive involvement in various economic sectors through SOEs can limit private investments. By promoting and facilitating private sector investment and reevaluating its economic role, the government believes it can create opportunities for private investments, enhance efficiency and productivity, and drive Fiji’s economic growth.
According to the NDP, the total asset base of government-owned SOEs rose significantly from $8.4 billion in 2019 to over $9 billion in 2022, with notable contributions from infrastructure and transport sectors such as Airports Fiji Limited, Energy Fiji Limited, Fiji Ports Corporation Limited, and Fiji Airways. However, between 2010 and 2020, the contribution of the 19 active SOEs to the GDP was only 3.7 percent, far below the estimated 16-20 percent of gross fixed investments in the economy managed by SOEs. Currently, the government oversees a total of 25 SOEs.