Fiji’s construction sector is witnessing a notable increase in building approvals, with data from the September 2024 quarter showing a 5.8 percent decrease from the previous quarter, bringing the nominal value to $133 million. However, there has been a significant year-on-year growth of 68.6 percent, resulting in an annual total of $381 million.
Economists Kishti Sen and Tom Kenny from ANZ highlighted that the shopping mall and warehouse sectors have been the primary contributors to this upward trend. They express optimism about Fiji’s solid investment pipeline for non-dwelling structures, which has already surpassed the previous record of $350 million set in 2018. A variety of projects, including offices, shops, warehouses, hospitals, factories, hotels, and resorts, are anticipated to commence over the next two to three years.
The report emphasizes the positive impact of stable policy and legislative frameworks, which facilitate the progression of projects into the permitting stage. Sen and Kenny also foresee sustained strength in building approvals throughout the remainder of the year and into 2026. As these projects transition from approval to commencement, construction activity is poised to play a crucial role in driving economic growth, potentially resulting in new job creation and increased household incomes.
In a previous report, Dr. Sen articulated that up to $600 million in private investments could flow into Fiji’s economy next year, which is expected to contribute significantly to local economic growth. He noted that the private sector was beginning to emerge, with investment likely focused on both residential and non-dwelling constructions that had stagnated previously.
Challenges remain, particularly regarding a shortage of skilled labor, as some construction workers are moving to overseas job opportunities. This could lead to delays in project initiation and completion. To address this, the economists suggested potential solutions, including importing skilled labor and improving visa processing times.
Overall, Fiji’s current trajectory indicates a promising economic future, marked by robust investment and construction activity. This positivity can also uplift the standard of living for residents by creating job opportunities and enhancing household spending power. As the economy progresses, the focus on infrastructure and construction will remain vital in fostering sustainable growth and community development.
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