2024 Investment Climate Statements: Fiji

Policies Towards Foreign Direct Investment

The Fijian government welcomes foreign investment. The Investment Act 2021 aims to improve the ease of doing business in Fiji by streamlining the business registration process; attracting foreign and domestic investment; and providing equity for investors with transparent, reliable, efficient, and fair rules and procedures. Foreign investors are no longer required to register for a Foreign Investment Registration Certificate (FIRC). The law also strengthens the rights and obligations of the investors.

Under the Investment Act 2021, both domestic and foreign investors must complete the business registration process with the Registrar of Companies and annually report to the government’s investment promotion and facilitation agency, Investment Fiji. The national treatment and the most-favored-nation principles apply, which specify that foreign investors must be treated no less favorably, in like circumstances, than domestic investors with respect to the acquisition, expansion, management, conduct, operation, sale, or other disposition of investments in Fiji. Fiji’s Department of Immigration is responsible for managing investor permits for non-citizen investors.

Investment Fiji is responsible for promoting foreign investment in the interest of national development, and its key priorities include investment promotion, facilitation, and aftercare support for both new and existing foreign and domestic investors. Investment Fiji also hosts information seminars for visiting foreign business delegations and participates at investment missions overseas.

The Fijian government supports and encourages existing businesses to re-invest. Established industry associations provide a forum for companies to share concerns and ideas in the industry. Examples of these industry associations include the Textile, Clothing, and Footwear (TCF) Council of Fiji, Business Process Outsourcing (BPO) Council of Fiji, and the Fiji Manufacturers Association.

Limits on Foreign Control and Right to Private Ownership and Establishment

Investors are free to invest in all sectors and regions in Fiji provided they do not contravene the Investment Act 2021 and other laws in place.

There are nine investment activities that are subject to restrictions, including larger minimum thresholds for investments (see “business facilitation” below). Restricted activities with minimum thresholds of $224,000 (FJD$500,000) include retail businesses, nightclub, and liquor bar operations outside the vicinity of a hotel or resort, and logging. For investments in fishing, manufacturing of tobacco products, homestay and backpacker operations, hotels or resorts, and real estate activities, the minimum threshold ranges from $447,000 (FJD$1 million) to $894,000 (FJD$2 million). The manufacturing of tobacco products also requires that at least 75 percent of tobacco be locally grown and processed. The current list of restricted areas can be found at www.businessnow.gov.fj .

Proposals for investments in certain sectors must be submitted to relevant ministries for approval. These include investments that may affect critical infrastructure such as energy, transport, communications, data storage, or financial infrastructure; critical technologies; the security of supply of critical inputs; or access to sensitive information or the ability to control sensitive information.

Other Investment Policy Reviews

Fiji completed its 4th World Trade Organization (WTO) Trade Policy Review in July 2023. The review noted that Fiji was making efforts to comply with its WTO commitments and a substantial level of technical assistance was required to support Fiji’s efforts. According to the review, Fiji had fulfilled 97 percent of its implementation commitments under the WTO Trade Facilitation Agreement through its customs modernization reforms and efforts to reduce the average applied tariff rate from 11 percent to six percent over the review period.

Australia is the largest donor to civil society organizations in Fiji and currently supports them through bilateral, regional, and global initiatives.

Business Facilitation

The Fiji government’s businessnowFiji website (https://www.businessnow.gov.fj/) is an information portal for new and existing businesses, as well as foreign investors. The portal provides information on the business registration process and how to obtain construction permits and includes application forms and links to all the required agencies, including the Registrar of Companies, Fiji Revenue and Customs Services (FRCS), Fiji National Provident Fund, National Occupational Health and Safety Services, and Fiji National University. The government continues to coordinate with government agencies to develop a single online clearance system to improve business approval processes and ease of doing business, but inefficiencies remain.

For foreign investors, the business portal website is also linked to the Investment Fiji website. The company registration form and procedures, as well as regulations for foreign investment, are available there. Under the Companies Act 2015, foreign investors need to register and obtain a tax identification number (TIN). There is a minimum threshold of $134,000 (FJD$300,000) for foreign investment into any sector that is not classified as restricted. Foreign investors must bring the minimum threshold capital into Fiji within three months, while the remaining capital is to be paid within a year of registration.

Investors are also required to obtain the necessary permits and licenses from other relevant authorities and should be prepared for delays. There are no special services or preferences to facilitate investment and business operations by micro, small, and medium sized enterprises, or by women.

The Ministry of Trade, Co-operatives, Small and Medium Enterprises, and Communications (MTCSME) has formed an inter-agency Investment Facilitation Committee to support high-value investments. The Committee will help address regulatory and administrative bottlenecks that investors encounter.

Contact: Ministry of Trade, Co-operatives, Small and Medium Enterprises, and Communications, Level 2 and 3, Civic Tower, Victoria Parade, Suva; Telephone: (679) 330 5411; Website: www.mcttt.gov.fj 

Outward Investment

The Reserve Bank of Fiji (RBF) tightened exchange controls for any outward investment by individuals, companies, and non-bank financial institutions, which require clearance from the RBF.

Transparency of the Regulatory System

Laws passed in parliament are available to the public on the parliament website and published in an official gazette. The lack of consultation with the private sector and other stakeholders on proposed laws and regulations is an area of concern. There is a perception among foreign investors that there is a lack of transparency in government procurement and approval processes. Some foreign investors considering investment in Fiji have encountered lengthy and costly bureaucratic delays, shuffling of permits among government ministries, inconsistent and changing procedures, lack of technical capacity, costly penalties due to Fiji Revenue and Customs Service (F’s RCS) interpretation of tax regulations, and slow decision-making. The Biosecurity Authority of Fiji (BAF) regulates all food and animal products entering Fiji and has stringent and costly point-of-origin inspection and quarantine requirements for foreign goods. The government does not require companies to file an environmental, social, and governance (ESG) disclosure.

Fiji’s constitution provides for public access to government information and for the correction or deletion of false or misleading information. Although the constitution requires that a freedom of information law be enacted, no such law is in place yet. Proposed bills or regulations, including investment regulations, are made available and usually posted on the relevant ministry or regulatory authority’s website. The parliamentary website (http://www.parliament.gov.fj/) is a centralized online location that publishes laws and regulations passed in parliament. The government’s public finances and debt obligations are also made available annually in the budget documents.

International Regulatory Considerations

Fiji is a member of the Melanesian Spearhead Group (MSG) that allows for the duty-free trade of goods between Fiji, Papua New Guinea, Vanuatu, and Solomon Islands. Fiji has been a member of the WTO since January 1996. According to Fiji’s trade profile on the WTO website, there are no records of disputes. Fiji ratified the WTO’s Trade Facilitation Agreement in 2017.

Legal System and Judicial Independence

Fiji’s legal system was developed from British law. Fiji maintains a judiciary consisting of a Supreme Court, a Court of Appeal, a High Court, and magistrate courts. The Supreme Court is the final court of appeal.

Both companies and individuals have legal recourse available through the system of local and superior courts. A foreign investor theoretically has the right of recourse to the courts and tribunals in Fiji to settle disputes, but the government has used laws in past cases to block foreign investors from legal recourse in investment takeovers, tax increases, or write-offs of interest to the government.

Laws and Regulations on Foreign Direct Investment

The Investment Act 2021 was implemented in 2022, replacing the Foreign Investment Act (FIA) and the 2009 Foreign Investment Regulation, and regulates foreign investment in Fiji. Information on the registration procedures, regulations, and registration requirements for foreign investment is available on the government’s business portal ( www.businessnow.gov.fj ) and includes links to the Investment Fiji website. Observers note transparency concerns with the law, which is vague on foreign investment requirements in sectors of national security interest. Also, the law includes criminal penalties for investors who do not bring capital into the country within the prescribed timeframe.

Competition and Antitrust Laws

The Fiji Competition and Commerce Commission (FCCC) regulates monopolies, promotes competition, and controls prices of selected hardware, basic food items, and utilities, to ensure a fair, competitive, and equitable market.

Expropriation and Compensation

Expropriation has not historically been a common phenomenon in Fiji. A foreign investor theoretically has the same right of recourse as a Fijian enterprise to the courts and other tribunals of Fiji to settle disputes. In practice, the government has acted to assert its interests with laws affecting foreign investors.

The Investment Act 2021 and section 27 of the Constitution of the Republic of Fiji provide an investor protection from compulsory or arbitrary acquisition of property that is part of their investments.

Dispute Settlement

ICSID Convention and New York Convention

Fiji has been a member of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID) since September 1977. Fiji acceded to the New York Convention in September 2010. In 2017, the parliament passed the International Arbitration Act 2017, which implemented the New York Convention.

Investor-State Dispute Settlement

The government has sometimes opted to deport foreign investors as a penalty in lieu of dispute settlement, but there have been no new cases since 2016.

Past investment disputes have often focused on land issues, particularly in the mining, timber, and tourism sectors. Such disputes have been resolved through labor-management dialogue, government intervention, referral to compulsory arbitration, or through the courts. In some instances, the investors have withdrawn from Fiji when a resolution could not be found.

International Commercial Arbitration and Foreign Courts

Fiji also enacted the International Arbitration Act to improve the framework governing international commercial arbitration, adopting a version of the United Nations Commission on International Trade Law (UNCITRAL) model law on arbitration. The Fiji Mediation Center (FMC) is an alternative dispute resolution mechanism, and it has local and international mediators accredited by the Center in collaboration with Singapore.

Bankruptcy Regulations

Fiji’s Companies Act 2015 has provisions relating to solvency and negative solvency. According to the 2020 World Bank Doing Business survey, in terms of resolving insolvency, it took an estimated 1.8 years at a cost of ten percent of the estate to complete the process, with an estimated recovery rate of 46.5 percent of value.

Investment Incentives

Fiji offers incentives for a range of sectors to encourage investments in energy, audio & visual, retirement village / aged care facilities, health sector, tourism, manufacturing, and the information communication technology (ICT) / business process outsourcing (BPO) sector. The incentives are uniformly applied to both domestic and foreign investors.

The Government is increasingly participating in public private partnerships. Although it does not issue guarantees for foreign direct investments, it has previously offered a tax holiday for the entire period of the partnership agreement.

Fiji offers a seven-year tax holiday to investors for electric vehicle charging station development. Investment projects will be granted a subsidy up to a maximum of five percent of the total capital outlay incurred in the development of electric vehicle charging stations, provided the capital expenditure is at least $23,000 (FJD$50,000), and approved companies are eligible for duty free concession on capital equipment and machinery.

Tax holidays for Information Communications Technology (ICT) businesses are available with qualifying conditions such as minimum investment levels and minimum number of employees. Tax holidays range from five to 13 years, depending on the level of investment.

For investment in a new private hospital, tax holidays range from seven to 20 years, with minimal investments of $1.1 million (FJD$2.5 million). Incentives for investments in new ancillary medical services, including pathology lab services and diagnostic services, include seven-to-20-year tax holidays, starting from a minimum investment of $223,500 (FJD$500,000), and on the condition that the establishment is completed within two years of date of provisional approval.

Foreign Trade Zones/Free Ports/Trade Facilitation

The northern and selected maritime regions of Fiji have been declared Tax Free Regions (TFR) to encourage development in these isolated outposts. The specific areas include Vanua Levu, Rotuma, Kadavu, Levuka, Lomaiviti, Lau, and the Nausori-Lautoka region (from the Nausori Airport side of the Rewa River (excluding township boundary) to the Ba side of the Matawalu River). Naboro, located outside Suva, is also a designated TFR for companies engaged in waste management and the Tamavua ICT Park for companies engaged in ICT businesses. Businesses established in these regions that meet the prescribed requirements enjoy a corporate tax holiday of up to 13 years and import duty exemption on raw materials, machinery, and equipment.

Performance and Data Localization Requirements

The government does not follow “forced localization.” However, immigration “time post” permits reserved for specialist positions encourage the transfer of knowledge and skills from expatriate workers to local workers. Investor permits are granted and extended by the Department of Immigration based on recommendations submitted by Investment Fiji through a progress report. The progress report provides the Department of Immigration an update on the progress of the foreign investor’s project.

There are requirements to use domestic content in goods to qualify for trade under agreements between Fiji and partner countries, and to receive the “Fijian Made” branding by the MTCSME. These requirements apply to both foreign and domestic investors. Investment incentives are applied systematically. To support the implementation of newly approved investments, Investment Fiji’s monitoring system assists companies in obtaining necessary approvals to commence operations.

The U.S. Embassy is unaware of any policies regulating data storage or requiring foreign IT providers to turn over source code or provide access to surveillance.

The Investment Act 2021 requires approval for any new investments relating to data storage or access to sensitive information or the ability to control sensitive information. However, there are no standard application forms and information requirements to be submitted to the MTCSME.

Real Property

Land tenure and usage in Fiji is a highly complex and sensitive issue. Fiji’s Land Sales Act of 2014 restricts ownership of freehold land inside city or town council boundaries to Fijian citizens. There are exceptions to allow foreigners to purchase strata title land, which is defined as ownership of part of a property including multi-level apartments or subdivisions. Foreigners are still allowed to purchase, sell, or lease freehold land for industrial or commercial purposes, residential purposes within an integrated tourism development, or for the operation of a hotel licensed under the Hotel and Guest Houses Act. The Land Sales Act also requires foreign landowners who purchase approved land to build a dwelling valued at a minimum of $112,400 (FJD$250,000) on the land within five years. However, the law has not been enforced. Freehold land currently owned by a non-Fijian can pass to the owners’ heirs and will not be deemed a sale.

Ethnic Fijians communally hold approximately 89 percent of all land. Crown land owned by the government accounts for four percent, while the remainder is freehold land, which private individuals or companies hold. All land owned by ethnic Fijians, commonly referred to as iTaukei land, is held in a statutory trust by the iTaukei Land Trust Board (TLTB) for the benefit of indigenous landholding units (collections of households; under the indigenous communal landowning system, land is not owned by individuals). In 2023, the government announced that it would undertake consultations prior to any changes to the land bank established in 2010 in the Ministry of Lands under the Land Use decree.

The constitution includes provisions protecting land leases and land tenancies, but observers noted that the provisions had unintended consequences, including weakening the overall legal structure governing leases.

The availability of Crown land for leasing is usually advertised. This does not, however, preclude consideration given to individual applications in cases where land is required for special purposes. Government leases for industrial purposes can last up to 99 years with rents reassessed every ten years. TLTB leases for land nearer to urban locations are normally for 50-75 years. Annual rent is reassessed every five years. The maximum rent that can be levied in both cases is six percent of unimproved capital value. Leases also usually carry development conditions that require lessees to effect improvements within a specified time.

Apart from the requirements of the TLTB and Lands Department, central and local government authorities have also specified town planning, conservation, and other requirements that affect the use of land. Investors are urged to seek local legal advice in all transactions involving land.

In terms of aviation, Fiji is a party to the 2001 Cape Town Convention on Mobile Equipment (CTC) and the Protocol on Matters Specific to Aircraft Equipment (Aircraft Protocol).

Intellectual Property Rights

Fiji’s copyright laws conform with WTO Trade Related Aspects of Intellectual Property (TRIPS) provisions. However, the enforcement of these laws remains weak, and capacity is a challenge.

In 2021, Fiji updated its intellectual property laws, including the protection of trademarks, patents, and designs, but the finalization of regulations is delaying implementation. The government’s trademarks records are not digitized, and every trademark search is conducted manually. For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/.

Capital Markets and Portfolio Investment

The Reserve Bank of Fiji (RBF) regulates and supervises the capital market. Nineteen companies were listed on the Suva-based South Pacific Stock Exchange (SPSE). The market capitalization of the listed securities contracted by 1.5 percent over the quarter to $1.43 billion (FJD$3.2 billion) on September 30, 2023. The RBF issued the Companies (Wholesale Corporate Bonds) Regulations 2021 to develop the domestic corporate bond market by providing a simplified process for the issuance of corporate bonds to eligible wholesale investors only.

Foreign investors are allowed to get credit from authorized banks and other lending institutions for loans up to $4.5 million (FJD$10 million) without RBF approval, provided the debt-to-equity ratio of 3:1 is satisfied.

Money and Banking System

Fiji has a well-developed banking system supervised by the Reserve Bank of Fiji (RBF). The RBF regulates the Fiji monetary and banking systems, manages the issuance of currency notes, administers exchange controls, and provides banking and other services to the government. In addition, it provides lender-of-last-resort facilities and regulates trading bank liquidity.

There are six commercial banks with established operations in Fiji: ANZ Bank, Bank of Baroda, Bank of South Pacific, Bred Bank, Home Finance Corporation (HFC), and Westpac Banking Corporation, with HFC the only locally owned bank. Non-banking financial institutions also provide financial assistance and borrowing facilities to the commercial community and to consumers. These institutions include the Fiji Development Bank, Credit Corporation, Kontiki Finance, Merchant Finance, and insurance companies. At the end of 2023, total assets of commercial banks rose to $6.4 billion (FJD$14.4 billion), compared to $6.0 billion (FJD$13.5 billion) in 2022. The RBF reported that liquidity reached $1.07 billion (FJD$2.4 billion) in December 2023 and was sufficient and did not pose a risk to bank solvency. To open a bank account, foreign investors need to provide a copy of the company registration and a letter of approval by the Reserve Bank for the issue of shares to the non-resident shareholders.

Foreign Exchange and Remittances

Foreign Exchange

A foreign investor that has invested funds or capital goods from overseas and has fulfilled all regulatory requirements is guaranteed the repatriation of his total investment, including any income earned from his investment.

The Fiji dollar remains fully convertible. The Fiji dollar is pegged to a basket of currencies of Fiji’s principal trading partners, chiefly Australia, New Zealand, the United States, the European Union, and Japan. Although no limits were placed on non-residents borrowing locally for some specified investment activities, the RBF placed a credit ceiling on lending by commercial banks to non-resident-controlled business entities.

Remittance Policies

The commercial banks require RBF approval for any investment profit remittances. Prior clearance of withholding tax payments on profit and dividend remittances from the Fiji Revenue and Customs Service is required. Tax compliance may restrict foreign investors’ repatriation of investment profits and capital. A tax clearance certificate is required for remittances above $9,000 (FJD$20,000) and audited accounts for amounts above $2.2 million (FJD$5 million). The processing time for remittance applications is approximately three working days, contingent on all the required documentation being submitted to the RBF.

Sovereign Wealth Funds

The Fiji government does not have a sovereign wealth fund or asset management bureau. The country’s pension fund scheme, the Fiji National Provident Fund, which manages and invests members’ retirement savings, accounts for a third of Fiji’s financial sector assets. The fund invests in equities, bonds, commercial paper, mortgages, real estate, and various offshore investments.

Privatization Program

Through public private partnership (PPP) models, the government is pursuing more private sector participation in public infrastructure projects, including energy, aviation infrastructure, and public housing, often seeking technical assistance from development partners, including the International Finance Corporation, to implement these arrangements. In 2023, the government announced a 10-year $200 million Tourism Development Program in partnership with the World Bank to support tourism development in Vanua Levu, Fiji’s northern region. Private sector participation will be integral in the project implementation. Foreign investors are already partnering in public-private partnership arrangements in energy, health, and maritime port sectors. In 2021, a Japanese consortium acquired 44 percent shareholding in state utility company Energy Fiji Limited. Fiji signed its first public private partnership agreement in the medical sector in 2018 with Fiji’s pension fund and an Australian company to develop, upgrade, and operate the Ba and Lautoka hospitals, the country’s two major hospitals in the western region. The Ministry of Finance publishes these opportunities as Tenders or Expressions of Interest ( http://www.economy.gov.fj/ ).

Additional Resources

Department of State

• Country Reports on Human Rights Practices ( https://www.state.gov/reports-bureau-of-democracy-human-rights-and-labor/country-reports-on-human-rights-practices/)
• Trafficking in Persons Report ( https://www.state.gov/trafficking-in-persons-report/)
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities ( https://www.state.gov/key-topics-bureau-of-democracy-human-rights-and-labor/due-diligence-guidance/)
• U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises ( https://www.state.gov/u-s-national-contact-point-for-the-oecd-guidelines-for-multinational-enterprises/)
• Xinjiang Supply Chain Business Advisory ( https://www.state.gov/xinjiang-supply-chain-business-advisory/)

Department of the Treasury

• OFAC Recent Actions ( https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions )

Department of Labor

• Findings on the Worst Forms of Child Labor Report ( https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings  )
• List of Goods Produced by Child Labor or Forced Labor ( https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods )
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World ( https://www.dol.gov/general/apps/ilab )
• Comply Chain ( https://www.dol.gov/ilab/complychain/ )

Climate

The Fiji government has identified climate change as the single largest threat to Fiji’s development aspirations. The National Climate Change Policy 2018-2030 (NCCP) is the country’s overarching policy instrument for climate change and aligns closely with Fiji’s 20-year National Development Plan. The NCCP outlines Fiji’s priorities and strategies for reducing present and future climate risks, while maximizing the country’s long-term gains in development.

The NCCP and the Low Emission Development Strategy (LEDS) solidify Fiji’s commitment to achieve net-zero emissions by 2050. In 2021, Fiji signed a five-year agreement with the Forest Carbon Partnership Facility (FCPF) that will reward up to $12.5 million (approx. FJ$26 million) for its efforts to reduce carbon emissions from deforestation and forest degradation. The Forest Carbon Partnership Facility (FCPF) is a global partnership housed at the World Bank. Fiji’s emission reductions program will address the main drivers of deforestation and forest degradation through integrated land use planning, native forest conservation, and sustainable pine and mahogany plantations.

The government has launched several financing initiatives to raise budgetary resources for implement its climate change commitments, including the issue of its first-ever sovereign green bond in November 2017 on the London Stock Exchange, and a plastic bag levy to promote the use of reusable bags. However, public procurement policies do not include environmental and green growth standards.

Resources to Report Corruption

Contact at the government agency or agencies that are responsible for combating corruption:

Ms. Francis Pulewai
Acting Deputy Commissioner
Fiji Independent Commission Against Corruption (FICAC)
P.O. Box 2335, Government Buildings, Suva, FIJI
(679) 3310290
info@ficac.org.fj 

Contact at a “watchdog” organization:

Civic Leaders for Clean Transactions (CLCT) Integrity Fiji
60 Robertson Road, Suva
integrityfiji73@gmail.com 
www.facebook.com/civicleaders