Minister for Agriculture, Waterways and Environment, Hon. Dr Reddy;
Respective Permanent Secretaries;
Governor of Reserve Bank of Fiji;
Respective Presidents of Private Sector Association;
Acting CEO Fiji Revenue Customs Services;
Invited Guests;
Members of the Media;
Good morning and a very warm welcome to the Ministry of Commerce, Trade, Tourism and Transport.
I thank you for being here this morning, for this special announcement.
As you are aware, the Fijian Government, as part of the recovery strategy, announced Loan Packages under the COVID-19 Concessional Finance Support Package for Micro, Small and Medium Enterprises (MSME).
Ladies and Gentlemen,
We created these packages with the sole intent to help the most vulnerable Fijians. It focuses on supporting existing businesses who have been worst affected due to the COVID-19 pandemic. These packages are also targeted at those aspiring entrepreneurs. Those who have been laid off, but have a particular skill set and would like to start their own business.
The impacts of the pandemic extend well beyond health. It cuts across multiple sectors, causing unparalleled socio-economic impacts. As we have eliminated COVID from spreading around Fiji, we have also worked on creating livelihoods for Fijians.
The current economic context has enabled us to forge new partnerships and new beginnings. One such partnership is with leading private sector organisations.
In order to implement this initiative in an independent and transparent manner, the Fijian Government has engaged private sector bodies, such as the Fiji Institute of Accountants, Fiji Chamber of Commerce and Industry, Women in Business and Fiji Commerce and Employers Federation to come on board and assess the applications received.
Ladies and Gentlemen,
I want to acknowledge the support of Fiji Revenue and Customs Services, who will be disbursing the loan funds to the successful applicant.
We have further strengthened our collaboration with the Ministry of Agriculture, who have been assessing Agro-based applications and the Ministry of Rural Development, through their Commissioner Offices, who have been instrumental in rolling out this initiative.
Ladies and Gentlemen,
We are not living in normal times. This means the assessors have had to apply “outside the box” thinking whilst doing the assessments. They applied flexibility whilst remaining prudent to the basic business principles.
They also had a look at the applications that would create greater economic impacts, such as creation or retention of employment, within a key economic sector and support towards the export of Fijian Made products.
Ladies and Gentlemen, this goes without saying, that there are many businesses that have been severely impacted by COVID-19. Given the significant slowdown in economic activity, it is incontestable that a vast number of MSMEs have been affected, almost to the point of perpetual closure.
By close of applications on 30 June 2020, we received an overwhelming response with close to 9,000 applications valued at more than $62 million.
Please allow me to provide a breakdown of the applications received:
- Approximately 4,680 applicants valued at $28.8 million from newly registered micro businesses,
- Approximate 3,600 applicants valued at $22.8 million from existing micro businesses,
- Approximately $7.2 million from 540 small enterprises, and
- Approximately $3.7 million from 180 medium enterprises.
These applications were from all over Fiji.
- 35% from the Western Division,
- 41% from Central,
- 22% from Northern Division, and
- 2% from the Eastern Division.
I am happy to report, of all applications received, 43% were from women (and 57% men). This is a shift in the dynamics and represents confidence in their Government, by our women entrepreneurs.
Ladies and Gentlemen,
More than 3,000 applications have been assessed, out of which 2,339 have been approved valued at $18.7 million, so far.
The assessors are continuing to assess the remaining applications and we hope to complete the entire assessments by the end of September.
In terms of sectoral breakdown, MSMEs operate in cross-cutting sectors and approvals have been granted in Wholesale and Retail, which mainly comprises retails stores, hair salons and hairdressers, auto repair businesses and canteens.
Additionally, it is pleasing to note that there were applications received from the priority sector namely the agriculture which was expected as a lot of Fijians are returning to the land to earn a living.
Ladies and Gentlemen, applications from the food and hospitality sectors that covers restaurants, bakeries, backpackers, small hotels operating as eco-tourism that have been also approved.
In the services sector, we have MSMEs in photography services, car wash, videography and graphic designing.
Ladies and Gentlemen,
There was a time where these businesses were indirectly benefiting from our once thriving tourism industry and manufacturing industry. Without tourists and lack of demand for products such as Textile Clothing Footwear products in Australia, they need support for working capital.
As a responsible Government, with credible assessors, applications are carefully considered and approved on merit. It’s important to understand — this is not a hand out.
Ladies and Gentlemen,
We are trying to create an environment where we want businesses to be disciplined and take ownership and be accountable.
Government is doing its part to assist those affected by COVID-19, but now it’s up to the businesses, irrespective of whether you are a micro, small or medium business. We want businesses to be fully compliant and grow their business.
We want them to adopt best practices, such as good governance and honesty, that are vital for sustainable business.
We thank and acknowledge and thank the Business Assistance Fiji Panel Members, namely Fiji Institute of Accountants, Women in Business, Fiji Commerce and Employers Federation and Fiji Chamber of Commerce Industry whom I have witness work tirelessly during assessment.
I would also like to thank our partner Government agencies for their continued support.