Fiji is poised for significant private investment in the coming year, but there is an urgent need to address existing skills gaps in the construction sector. Dr. Kishti Sen, a senior economist for the Pacific at ANZ, highlighted this at a media roundtable, where he predicted that private investment would propel Fiji’s GDP growth in 2025 and 2026.
Dr. Sen forecasted an additional $600 million in new private spending next year, yet he emphasized the importance of resolving labor constraints that currently limit progress in the construction sector. Other sectors, such as business services and mining, also face similar slowdowns, but Dr. Sen believes these areas will improve as the economy strengthens.
He stated, “New investment is essential, despite existing labor challenges. Once a cluster of new projects begins, these industries are likely to advance and shift gears.” Dr. Sen suggested that Fiji may need to look into importing labor to help unlock its investment potential and alleviate pressure on existing labor resources. He recommended that the Department of Immigration consider streamlining processes to speed up work permit applications.
Kamal Chetty, CEO of Investment Fiji, noted that there are currently 27 projects valued at $1 billion in the construction phase, expected to start trading in the upcoming years. Additionally, 20 more projects worth $1.6 billion are anticipated to begin construction soon, contingent on the successful progression and timely approval of all planned initiatives.
According to the Fiji Bureau of Statistics, the estimated total value of construction work completed last year was $557.9 million, marking an increase of $31.8 million (6 percent) from 2022, which had a total of $526.1 million.