THE International Finance Corporation (IFC), a member of the World Bank Group focused on the private sector, yesterday announced a partnership with BRED Bank (Fiji) Pte Limited to support growth and job creation in Fiji by helping small and medium enterprises (SMEs) access finance.
SMEs are vital engines of economic growth and job creation in Fiji. But many struggle to access the capital they need to grow, hire, innovate and fully contribute to the economy.
To support Fiji’s crucial SME sector, IFC will provide an unfunded risk-sharing facility to BRED Bank (Fiji), with a maximum IFC risk amount of $US6 million equivalent in Fijian dollars under IFC’s Small Loan Guarantee Program. The investment, which is supported by the International Development Association’s (IDA) Private Sector Window, will enable BRED Bank (Fiji) to extend new loans to SMEs to build a portfolio of up to US$12 million equivalent in Fijian Dollars.
IFC will also provide advisory services to help BRED Bank (Fiji) scale up its commercial lending. IFC estimates that the expanded lending will generate an economy-wide impact in Fiji, driving job creation directly within businesses and indirectly through their supply chains and wider economic activity.
In particular, this partnership will enable BRED Bank (Fiji) to increase lending to rural SMEs, including those in outer islands and remote inland communities where banking infrastructure is limited.
In addition to facing an acute financing gap, these rural SMEs are typically in labor-intensive sectors including agriculture, fisheries and small-scale tourism. Better access to finance will enable them to grow and add more employees.
“With a strong and growing presence in Fiji, BRED Bank is well positioned to support the expansion and resilience of our SME sector. BRED’s long-standing global partnership with the IFC reflects a shared commitment to sustainable growth,” BRED Bank (Fiji) chief executive officer Pierre Tastet said.
“This collaboration not only strengthens our ability to extend financing, but also reinforces our relationship-driven approach, bringing tailored solutions closer to local businesses and supporting the entrepreneurs who are vital to Fiji’s economic future.”
IFC’s Regional vice president for Asia and the Pacific Sarvesh Suri said SMEs in Fiji face many constraints on their ability to raise capital, which prevents them from playing a full role in the economy.
“With this facility, IFC aims to help close Fiji’s financing gap and support these vibrant businesses to create more jobs and growth.”
This announcement builds on longstanding support from the governments of Australia and New Zealand, whose partnership with IFC has helped strengthen Fiji’s private sector and deepen financial markets across the Pacific.
