Venkat Raman
Auckland, April 10, 2022
Agriculture, Manufacturing, Infrastructure, Renewable Energy and Business Process Outsourcing (BPO) are among the six major areas which have rich potential for investment in Fiji, a senior Minister of the government has said.
Commerce, Trade, Tourism and Transport Minister Faiyaz Koya said that as well as investment opportunities, there are major incentives available for investors.
‘Generous’ Tax Incentives
“ICT-enabling infrastructure and services such as cable-landing and associated infrastructure, accredited training institutions and ICT start-ups are also areas in which there are measures to attract investors,” he said.
Mr Koya was speaking at a webinar organised recently by the New Zealand Fiji Business Council (NZFBC) in conjunction with the Office of the Fiji Consulate General and Trade Commission (New Zealand and Australia), Fiji High Commission in Wellington and the New Zealand Trade & Enterprise.
The focus of the Webinar was Trade Recovery between New Zealand and Fiji.
According to Mr Koya, Fiji offers generous tax incentives for investments in selected sectors and categories, including a 200% tax deduction on the development of or upgrade of online shopping websites with integrated payment platforms.
He said that the world is adjusting to the new realities precipitated by the Covid-19 pandemic and that structural changes are occurring in almost all the countries.
“Covid-19 has highlighted the importance of having a resilient supply chain, which is now a priority for businesses and countries,” he said.
Diversification is the key
Emphasising the importance of trade with Fiji, Labour MP and Parliamentary Undersecretary for Trade and Export Rino Tirikatene said his government’s current strategy is to refresh key trade relationships and diversify the country’s trading partners.
“The Pacific is a major market for New Zealand, with significant opportunities to grow trade and build back better in the post-pandemic world. Fiji is among New Zealand’s top 20 trading partners, on a par with France and ahead of even much larger economies such as Mexico or Brazil,” he said.
(NZ Parliament)
PACER Plus Agreement
Mr Tirikatene said that New Zealand is keen to see Fiji joining the PACER Plus Trade Agreement, which came into effect in 2020.
He said that while the Agreement includes member countries of the Pacific Islands Forum and Australia and New Zealand, it does not include Fiji and Papua New Guinea, the two large economies of the South Pacific.
Both countries have declined to join, citing a lack of benefits with the removal of tariffs as one of the sticking points.
“It is not only about reducing tariffs, but also harmonising standards across the region to create a more transparent operating environment, reducing red tape, and assisting the development of new export opportunities,” Mr Tirikatene said.
He said that despite the pandemic, there have been ‘considerable bright spots’ in recent trade, including Fiji’s goods exports to New Zealand growing by more than 20% to reach $70 million in the year to September 2021.
“I am confident that there is potential to regrow our trade and investment into Fiji,” he said.
NZFBC President Chandar Sen, who is currently in Fiji on business, spoke of his seamless and hassle-free travel experience.
“Travel is important for trade between the two countries, and I can report the pathway is now clear. The Council will host a trade mission to Fiji in June 2022, with its sister organisation, the Fiji-New Zealand Business Council convening a joint conference,” he said.
Two-way trade between New Zealand and Fiji is about F$1 billion including New Zealand exports to Fiji valued at $640 million. Total trade fell to $543 million in the year to 31 September 2021 as a result of the pandemic and associated collapse of the tourism sector with services exports falling 84% during this period.
Business Process Outsourcing
The potential for growth in BPO was emphasised by both governments.
Mr Koya said that BPO has evolved from traditional outsourced call centres to sophisticated customer service and business support centres.
“The services offered by Fiji include payroll, accounting, telemarketing, data recording, social media marketing, customer support, and IT support. We are the move in this growing sector, putting a challenge up to other destinations such as India and the Philippines. It presents clear cost, cultural and time-zone advantages. While there is a growing demand for near-shoring of outsourcing services, Fiji is a near-shore Mecca because of our proximity to New Zealand and Australia,” he said.
Mr Tirikatene said that the growth of the Fiji BPO sector will generate significant opportunities for investment while also helping New Zealand companies get access to top quality Fijian skills, closer to home.
