Fiji will see the launch of its inaugural development bank specifically for landowners by mid-2025, as revealed by Solomone Nata, the chief executive officer of the iTaukei Land Trust Board (TLTB). This significant initiative follows substantial reforms initiated last year to combat rising poverty levels and encourage greater involvement of iTaukei people in business activities.
Landowners registered with TLTB have already begun to benefit from the newly established iTaukei Development Fund, a soft loan facility created to cater to their financing needs. This fund operates alongside the iTaukei Wealth Fund, which was introduced last year and aims to serve as a self-sustaining financial resource for landowners aimed at supporting their commercial ventures. The Wealth Fund is projected to generate approximately $12 to $13 million annually, assisting with compensation for improvements on expiring leases and facilitating iTaukei participation in commerce by providing essential capital and equity.
The TLTB Board of Trustees has established the iTaukei Development Fund with an initial allocation of $5 million. This fund is designed to help landowners make more effective use of their land and resources through commercially viable agreements with TLTB while the Wealth Fund gradually accumulates.
Mr. Nata noted that to date, TLTB has approved 33 funding applications valued at $2.7 million, predominantly for farming, livestock, debt settlement for bank loans, and sand/gravel extraction. Notably, the financing from the iTaukei Development Fund does not require any deposit, with a competitive lending rate set at 2.5 percent.
This initiative not only marks an important step toward economic independence for iTaukei landowners but also aims to improve their overall engagement in Fiji’s economy. The forthcoming development bank is a hopeful advancement in promoting financial inclusion, sustainability, and empowerment within local communities.
In summary, the establishment of these funds and the forthcoming development bank is a positive stride towards enhancing the economic wellbeing of the iTaukei community, providing them with essential resources to thrive.
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