Hon. Ministers and Excellencies,
Heads of Delegation,
Distinguished Presenters and Panelists,
Ladies and Gentlemen,
Bula Vinaka and Warm Greetings from Fiji.
It is my pleasure to join you all this afternoon and contribute to this immensely important topic: The Digital Revolution: Learnings from Small Businesses.
Before moving into this very important topic, I wish to congratulate the Indian Government and Confederation of Indian Industry (CII), for hosting the annual CII Partnership Summit.
Organised against the backdrop of the pandemic, this event is a paradigm of walking the talk, i.e. reflection of embracing digital technology.
The ability of virtual representation and interaction of various delegates from across the world, indeed reflects the revolutionisation of modern day technology.
Ladies and Gentlemen,
The pandemic serves as an important lesson to both the Government and entrepreneurs, that recovery must be green, resilient, inclusive and sustainable. The adoption of technology is no longer an option, it is imperative.
Amid slowing economic activity, COVID-19 has led to a surge in e-commerce and accelerated digital transformation globally. As lockdowns became the new normal, businesses and consumers increasingly “went digital” – buying and selling goods and services online.
This is also very much applicable to Micro, Small and Medium Enterprises (MSMEs), in many economies.
Ladies and Gentlemen,
The MSMEs form an important component of the Fijian economy, contributing over 18 percent to the Fijian GDP and employing 60 percent of the country’s labour force.
Over the past decade and during this pandemic, Fiji has seen the MSMEs surge and reach new heights. They have portrayed resourcefulness and innovation. The use of digital technology made the key ingredient towards this adaptation.
Ladies and Gentlemen,
During and post-pandemic there has been a 300 percent surge in the use of digital technology and online space by businesses, and we expect that trend to continue.
Furthermore, the major Telcos have recorded a 2,000 percent growth in digital transactions, within the last 12 months compared to the year before. The digital payment platforms are now processing over $100 million in transactions every month, amounting to $1.2 billion every year.
We have witnessed the emergence of online service platforms for food and general goods delivery, online art exhibition and auctions, entertainment, consultancy and financial services. We have also seen the agricultural sector moving towards digitalisation to increase efficiency.
This is a clear epitome of the Fijian MSMEs ability to adapt digital technologies, as a tool to transform business models and unlock new revenue streams.
Ladies and Gentlemen,
The Fijian Government recognises MSMEs as a critical component of the Fijian economy, as they are key to social cohesion and economic output.
Fijian MSMEs have proven to be resilient and agile during this pandemic period.
During the first wave of the pandemic in 2020, we undertook a survey of MSMEs, which indicated that approximately 42 percent of the MSMEs were able to revive and continue their business, provided they were given some form of support by the Government.
Keeping in mind their robustness and agility the Fijian Government through budgetary initiatives has continued support for MSMEs. We have provided infrastructure and resources for MSMEs to conduct online business. Some of these include:
i. subsidy scheme to support MSMEs to list goods and services on e-commerce trading websites (VitiKart);
ii. arrangements for inclusion of MSMEs as vendors on e-commerce platforms;
iii. FJ$200 million COVID-19 Recovery Credit Guarantee Scheme – which is a concessional financing facility for businesses affected by the pandemic. This includes 2 years of interest only loan facility by commercial banks, where the 2 years of interest will be paid by the Government. Therefore, MSMEs do not have to worry about loan repayments for 2 years;
iv. Free Wi-Fi hotspots, promoting electronic transactions – no customer fees for debit card POS transactions, subsidising PSO machines and merchants’ fees; and
v. Working with development partners to support inclusive access to digital platforms for rural communities, women and workers.
In addition to these incentives, the Fijian Government continues to work on digitalisation of government processes as per the 5-Year and 20-Year National Development Plan.
The Digital Government Transformation project is specifically designed to address the digital challenges and ensure progressive growth in the digital arena.
One ongoing agenda is the digitalisation and streamlining of business related processes. And the establishment of an online onestop information bizFIJI Portal – www.bizfiji.com is the first achievement of this project.
Ladies and Gentlemen,
Despite the geographical isolation, Fiji is one of the most tech-savvy nations in the Pacific region. Almost 95 percent of all Fijians now have access to mobile internet connectivity, across 3G, 4G, and 4G+ networks, compared to 70 percent mobile internet coverage data reported in other Pacific Island nations.
Our connectivity has been enhanced by the new Submarine Cable – directly connecting Fiji to the Southern Cross cable.
Ladies and Gentlemen,
In addition to having the best IT connectivity, Fiji has a well educated and dynamic workforce. These topped up with incentives in the IT and technology industry, makes Fiji an ideal investment destination.
As the hub of the Pacific in terms of trade, transport and communication, we need to capitalise on the advantages and create opportunities in the digital sphere. Establishment of payment gateways and securing e-commerce retail platforms are critical for the advancement of digital technology in Fiji and the Pacific.
Ladies and Gentlemen,
Events such as this, provide small island developing states, like Fiji, a platform to convene at an international arena and unfold the potential.
We are here to learn, adapt and seek collaboration from developed and advanced developing nations, where traditional MSMEs have evolved into modern day enterprises.
This meeting must provide mutually agreed outcomes that will facilitate further re-engineering, re-designing and innovation in MSMEs.
Ladies and Gentlemen,
Conducive to the human nature of resilience, the rapid digital revolution due to the pandemic is no surprise. It has transformed our lives and societies with unprecedented speed and scale, delivering immense opportunities as well as challenges.
I, therefore, reiterate, that we all must be steadfast, unified, and committed towards re-designing the new normal, where equal footing is available to all.
With these words, I wish the 2021 CII Partnership Summit a success.
Vinaka vakalevu and Thank you.