Reserve Bank of Fiji Governor Ariff Ali says a growing “wait-and-see” attitude ahead of the next general election is contributing to delays in private sector investment, despite almost $1 billion in approved financing being available for businesses.
Speaking at the Dialogue Fiji-organised State of the Fiji Economy 2026 Dialogue in Suva, Mr Ali said commercial banks have already approved close to $1 billion in loans that have yet to be drawn down by investors.
“My take on this is that right now there is almost a billion dollars of loans that the private sector has, or the commercial banks have already approved, but this has not been turned out,” Mr Ali said.
“Why isn’t it turned out? That’s the question.”
The Governor said discussions with businesses indicated that many projects were stalled while investors waited for approvals from various government agencies and regulatory bodies.
“When you talk to the private sector, they say they’re waiting for some approval.”
He argued that the economy could receive a significant boost if bottlenecks delaying investment decisions were removed.
“The economy can quickly come up if you give approvals on time.”
“Of course, if the approvals cannot be given, then that needs to be communicated quickly.”
Mr Ali said Fiji’s private sector had consistently demonstrated resilience and remained willing to invest despite challenging economic conditions.
“The private sector in Fiji has always been resilient. They continue to invest.”
However, he acknowledged that uncertainty associated with the approaching election was contributing to investor caution.
“Right now, there is a bit of a wait-and-see attitude as you get closer to election.”
The Governor stressed that the trend was not unique to the upcoming polls and had become a recurring feature of Fiji’s political and economic landscape.
“This is not common with this election. This has been common in all the elections for almost 35 years.”
Mr Ali said the only notable exception was the period surrounding the 2014 General Election.
“The only difference is 2014 slightly. Otherwise, there is always a wait-and-see attitude.”
He said unlocking private sector investment was critical because the Government had limited capacity to stimulate economic growth through public spending.
The Governor has previously noted that fiscal constraints and high debt levels mean the private sector remains Fiji’s strongest avenue for economic expansion.
Mr Ali said identifying and addressing the obstacles preventing approved investments from proceeding should be a national priority, particularly at a time when Fiji faces global economic uncertainty, rising fuel costs and growing social challenges.
“The bottom line is to find out what the problem is,” he said, adding that faster approvals and improved coordination could help unlock investment, create jobs and support economic growth.
