FIJI is set to receive $210 million from the Asian Development Bank (ADB) to help cushion the economy from higher energy costs, support households and businesses, and strengthen the Government’s capacity to respond to future shocks.
The funding comes as the Middle East conflict continues to put pressure on energy prices and the anticipated effects of El Niño threaten to slow Fiji’s economic growth this year.
The package forms the second phase of the ADB-led Fiji Sustainable and Resilient Growth Program, with $200m provided through a policy-based loan and a further $10m allocated for disaster financing.
ADB president Masato Kanda said the financing would help Fiji maintain essential services and respond more quickly when economic or natural shocks occurred.
“Readiness is a duty owed to every family whose livelihood can be upended by the next shock,” Mr Kanda said.
The program will build on reforms supported under its first phase, including improvements to tax administration, public financial management, digital payment systems and disaster response.
The second phase will focus on expanding access to finance, strengthening disaster risk management, advancing digital transformation and improving fiscal sustainability.
The $10m disaster financing facility will allow the Government to mobilise funds rapidly when emergencies occur, reducing delays in responding to future disasters.
ADB said Fiji remained exposed to economic pressures faced by many small island developing states, including high business costs, limited access to finance, a small and dispersed population, geographical isolation and the migration of skilled workers.
The program was developed in coordination with Australia, New Zealand, the European Union, the International Monetary Fund and the World Bank.
The latest financing is intended to strengthen Fiji’s economic and environmental resilience while supporting measures aimed at maintaining growth and protecting livelihoods during periods of disruption.
