Fiji is poised to launch its first development bank designed specifically for landowners by mid-2025, as announced by Solomone Nata, the chief executive officer of the iTaukei Land Trust Board (TLTB). This initiative comes in response to the pressing issues of rising poverty and the low involvement of iTaukei people in business ventures.
At a recent event in Suva, Mr. Nata disclosed that landowners registered with the TLTB have started to benefit from the newly established iTaukei Development Fund. This fund, initiated last year, offers soft loans to cater to the financial needs of landowners, while concurrently supporting the growth of the iTaukei Wealth Fund. The Wealth Fund is designed to become self-sustaining and is funded through a 10 percent deduction from lease payments collected by the TLTB.
The iTaukei Wealth Fund is anticipated to generate approximately $12 to $13 million annually, which will be allocated for compensating improvements on expiring leases and facilitating greater iTaukei participation in the commercial sector. This fund aims to provide capital or even equity to bolster opportunity for landowners.
Recognizing the time required for the Wealth Fund to mature, the TLTB Board of Trustees endorsed the launch of the iTaukei Development Fund with an initial capital of $5 million. This fund is intended to assist landowners in optimizing their land and resources through sustainable commercial arrangements with the TLTB.
Mr. Nata reported that the TLTB has already approved 33 out of 137 applications for funding, totaling $2.7 million. Approximately $1.4 million has been allocated for various initiatives, including farming, livestock development, debt repayments to banks, and extraction of sand and gravel. Importantly, the financing from the iTaukei Development Fund does not require a deposit and offers a competitive lending rate of 2.5 percent.
This development represents a significant step towards empowering landowners and enhancing their financial independence, with the ultimate goal of fostering economic growth within the iTaukei community.
Summary: Fiji will unveil its first development bank for landowners by mid-2025, with an iTaukei Development Fund already providing soft loans to support landowners. This initiative aims to promote economic growth and reduce poverty within the iTaukei community while the iTaukei Wealth Fund aims to secure financial stability in the long term.
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