IMF notes immediate concerns of ageing infrastructure

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Water Authority of Fiji (WAF) workers attend to its damaged infrastructure early this year. Picture: WAF

The International Monetary Fund (IMF) has noted immediate concerns in Fiji that include addressing ageing infrastructure in electricity, water and waste utilities, and improving the transport network and digital connectivity.

This was noted by the IMF executive board when it considered and endorsed its staff team’s assessment of Fiji after the conclusion of the 2025 Article IV consultation with Fiji, saying raising potential growth called for sustained structural reforms.

While the IMF executive board’s assessment stated that progress had been achieved in enhancing the business environment and addressing near-term constraints to growth, it noted the immediate concerns of ageing infrastructure.

“Ongoing concerns include training and human capital,” the IMF executive board stated.

“Successful measures would also encourage more foreign investment, ease external imbalances and reduce brain drain.”

The executive board added that like other Pacific states, Fiji also faced ongoing challenges from natural disasters and climate change.

It said increasing resilience added to the motivation to shift away from current toward capital spending.

“Such issues require sustained political consensus and good governance.

“The government’s recognition of the importance of institutional reform, commitment to the rule of law, and reducing corruption and bribery is welcome.

“Recent legislative progress will need to be matched by proper enforcement and addressing capacity constraints in the civil service.”