Vision
As Fiji continues to strive to integrate into the global economy, the Fijian Government, by this Investment Policy Statement, and guided by its overall vision of “Transforming Fiji”, emphasises the key role that private sector investment plays in driving economic development, and ultimately, in improving the wellbeing of Fijians. The primary objective is to yield a properly run national economy in which there is room and opportunity for everyone.
In order to achieve the vision, the Fijian Government has put in place a target to maintain total investments at 25 percent of the Gross Domestic Product. In addition, increasing private sector investments to over 15 percent of the GDP by 2036.
In this regard, the Fijian Government is focused on having a dynamic private sector, which invests, innovates and creates jobs. Investments, especially inward foreign direct investments, can facilitate the entry of capital, technology and know-how, diversification into new sectors and activities, and foster the integration of domestic firms into global value chains, among other benefits.
The Fijian economy is founded on sound market principles of openness and predictability and principles of legal protection that encourage and protect private enterprise.
The Fijian people are the cornerstone of the country’s success and the strongest pillar upon which to build a resilient and sustainable economy. The Fijian Government commits to implement a reform agenda that will develop and enhance the competencies necessary to build a competitive private sector. To that end, the Fijian Government is committed to the adoption and implementation of consistent and transparent policies that promote Fiji as a competitive and preferred investment destination.
Objectives
The objectives of Fiji’s Investment Policy are to improve the attractiveness of the country as a destination for investments that support Fiji in achieving its development aspirations, in line with the National Development Plan and the Fijian Trade Policy Framework by:
(a) Addressing investment climate issues in a holistic and coordinated manner;
(b) Providing a conducive environment that has an efficient, effective and transparent system for attracting, retaining and expanding investment;
(c) Enhancing, modernising and streamlining the legal, regulatory and institutional framework for investment;
(d) Adopting targeted investment promotion, facilitation and after care to attract and retain investments;
(e) Providing effective incentives for investments in targeted sectors and also in specified geographical locations;
(f) Promoting the development and application of good international standards and practices regarding investment;
(g) Mobilising private investment that supports economic growth and sustainable development, contributing to the economic and social well-being of Fijians;
(h) Ensuring inclusive development that extends the economic benefits from investments by creating linkages to domestic micro, small and medium enterprises, especially those in the rural and maritime communities; and
(i) Promoting the establishment of special economic zones that stimulate foreign and domestic investments.
To this end, the Fijian Government requires investors to abide by the laws and regulations of Fiji.
The Fijian Government is committed to pursuing high standards of governance and combat corruption at all levels to apply the following key principles for its investment policy.
Principles
The Fijian Government is committed to:
1. Non-discrimination between domestic and foreign investors and among foreign investors: Treating all foreign and domestic investors and investments as favorably as any other investor or investment in like situations in relation to the establishment, expansion, operation, and protection of their investments.
2. Investor rights and investment protection: Providing investors the freedom to invest, freedom to manage one’s own business, access to freely convertible currency, transfer of funds under limited and reasonable conditions. The Government commits to the protection of all investments from expropriation, or from measures taken that will have a similar effect, except for a public purpose and on a non-discriminatory basis, based on law, and subject to the prompt payment of adequate and effective compensation and in accordance with due process of law.
3. Transparency and good regulatory practices: Ensuring that all laws, regulations, administrative guidelines and policies pertaining to investment are enacted following proper notice and consultation and are available publicly in a prompt, transparent, and readily accessible manner.
4. Maintain environmental and social standards: Ensuring that all labour, health, safety, and environment regulations are adhered to by domestic and foreign investors.
5. Provide investment facilitation and aftercare: Fostering investor confidence and ensuring that investment is retained.
National Interest
The Fijian Government will work with applicants to ensure the national interest is protected. However, if it is ultimately determined that a proposal is contrary to the national interest, it will not be approved, or conditions will be applied to safeguard the national interest.
The national interest test will include, the following key fundamentals:
- Impact on national security
- Impact on competition
- Compliance with Fijian Government Policies and Laws
- Impact on the Fijian economy and community
- Impact on Environment and Health
- Character of the investor
- For state-owned enterprises – the commercial orientation of investor
Additional mechanism based on law will be established for the continued protection of national interests.
Next Steps
The Fijian Government is committed to reforming its investment legislation following the principles stated in Section 3 (a) – (e) above. As an immediate step, a comprehensive investment law with implementing regulations will be adopted. Concurrently, a comprehensive Investment Policy will be developed, based on the Investment Policy Statement. This process will be overseen by the National Trade Development Council under the Fijian Trade Policy Framework, as well as the Trade Development Committee and the Investment Facilitation Taskforce and will be conducted in a transparent manner, in consultation with all relevant stakeholders and will be informed by best international practices.
Subsequently, a detailed action plan agreed with relevant Government authorities will be adopted.