Fiji must urgently address existing skills shortages in the construction sector, despite robust expected investment projects commencing next year. Dr. Kishti Sen, senior economist for the Pacific at ANZ, made this statement during a media roundtable discussion, where he predicted that private investment would be a key driver of Fiji’s GDP growth in 2025 and 2026.
Dr. Sen noted that Fiji’s economy is poised for an additional $600 million in new spending through emerging private investments next year, although labor constraints currently pose challenges. He highlighted that the construction sector, along with business services and, to a lesser extent, mining, are presently operating at a slow pace due to these limitations.
He expressed optimism that as the economy improves, these sectors will begin to gain momentum. “New investment is crucial, even with existing labor constraints. Once a cluster of new projects takes off, these industries are likely to accelerate,” remarked Dr. Sen. He emphasized that Fiji might need to consider importing labor to maximize its business investment potential and alleviate pressure on local labor resources. He suggested that the Department of Immigration could streamline processes to expedite work permit applications.
Kamal Chetty, CEO of Investment Fiji, mentioned that there are currently 27 projects valued at approximately $1 billion in the construction phase, expected to begin operations in the coming years. An additional 20 projects worth a combined $1.6 billion are anticipated to kick off construction soon, contingent upon the effective progression of all planned initiatives and timely approvals.
The latest data from the Fiji Bureau of Statistics indicated that the total estimated value of construction work completed last year was $557.9 million, representing a $31.8 million increase (6 percent) compared to the $526.1 million reported in 2022.