The feasibility study into the proposed establishment of a bank to cater specifically to the needs of resource owners and MSMEs in Fiji has reported viability of these sectors.

Fijian Holdings Limited (FHL) Group CEO Jaoji Koroi said the study had focused on two validating aspects — the viability in the MSME and resource owned sector, and access to finance.

“The study clearly identified the viability of those demands in there, and the lack of access to proper financing for these sectors,” Mr Koroi said in response to questions from this newspaper.

“So it (feasibility report) came up with a lot of recommendations and we’re using it through Merchant Finance.”

Mr Koroi said they were reinvesting into Merchant Finance’s IT system with new product lines to be launched “to target these areas that came out in the feasibility study and ultimately build on that for our future”.

He said the two sectors were among areas the banks found quite risky and would not directly lend there.

Mr Koroi said there was also a need for a training centre for those that wanted to go into business.

“Training and knowledge sharing is a very important part of this journey.

“The other thing is the type of financing, guarantee schemes, which is readily available abroad in terms of how they set up MSMEs and resource-type sectors.

“There is a lot of work behind the scenes in terms of engaging with relevant authorities to make sure we can build a stronger ecosystem for everyone to be successful.”

He said part of the report would also be included in the proposed national strategic plan for MSMEs being prepared by Government.

The FHL board had approved the company to invest 10 per cent of its capital to invest alongside landowners and resource owners.

The study was conducted by Invexa Business Solutions Ltd and partly funded by the Government through the iTaukei Affairs Ministry.