ABOUT 80 percent of Micro, Small and Medium-sized Enterprises (MSMEs) are impacted by natural hazards each year according to a recent study, said Permanent Secretary for Trade Shaheen Ali.
Too often however, when disaster strikes, they are left without a safety net, he said.
Speaking at the official partnering ceremony between the Asian Development Bank (ADB), UN Capital Development Fund (UNCDF) and the UN Development Programme (UNDP)yesterday, Mr Ali said these MSMEs are then forced to draw down their savings, take on high-interest loans or shut their doors completely.
The new ADB/UNCDF/UNDP partnership is aimed to create an insurance market in Fiji that is dedicated to financing MSMEs during weather disruptions by climate change.
“Today, we gather not simply to launch a partnership, but to launch a promise — a promise to our people, and to the thousands of men and women who make up the beating heart of Fiji’s economy: our micro, small, and medium enterprises,” Mr Ali said.
“MSMEs make up more than 80 per cent of our registered businesses, employ around 60 per cent of our labour force and contribute significantly to our GDP.
“Before COVID-19, over 29,000 MSMEs were registered, contributing close to $380million in tax revenue.
“These numbers are not just statistics — they are the faces and stories of Fijians everywhere.
“And yet — these same enterprises, the backbone of our economy, are also the most exposed to the storms of our time.”
The partnership signed by the three organisations pushes for climate risk financing for MSMEs in the form of parametric insurance designed for them to not only survive disasters but to recover faster, ensuring smooth operations even after disruptions.
“This is the power of parametric insurance. Quick. Reliable and Fair,” Mr Ali said.
“When rainfall crosses a certain threshold, or when a cyclone hits, payouts are triggered automatically.
“No bureaucracy. No paperwork delays. Just relief, delivered when it is needed most.”
The partnership launched will help lay the foundation for an initiative dedicated to a domestic insurance market specifically designed to meet the needs of MSMEs and support climate resilience across critical sectors of the Fijian economy.
Note: This article was first published on the print version of the Fiji Times dated August 19, 2025