Fiji Sustained Private Sector-Led Growth Reform Program

The Program aimed to support the Government of Fiji (the “GOF”) 2020-2021 budget, that includes a
response to COVID-19 to mitigate the extreme public health emergency and ensuing unprecedented
economic crisis. The Program provided budget support to strengthen public finance for public health
containment and treatment measures and a fiscal stimulus with a focus on social and economic
protection. This was achieved by enhancing the quality of budget systems and institutions, improving the
productivity and competitiveness of state-owned enterprises (SOEs), and facilitating the creation of new
business and formal job opportunities, particularly for women. Additionally, it addressed the impact of
the COVID-19 pandemic on businesses, workers, and vulnerable populations through targeted transfers.

The following key results are expected under the Program:
(i) reduction in employers’ statutory Fiji National Provident Fund contributions until 31 December 2020;
(ii) 21 days Government-paid sick leave for workers who test positive to COVID-19;
(iii) tax deductions afforded to employers for wages and salary paid to employees who are self -quarantined;
(iv) support for small and medium enterprises (SMEs); and,
(v) support to the informal sector, including for women-owned micro-enterprises such as hawkers.

The Program is categorized by ADB as “Gender Equity Theme” with actions to support women’s economic protection and empowerment, including: (i) supporting women-owned/led SMEs; (ii) direct cash transfers to informal workers including women-owned micro-enterprises, such as hawkers; (iii) establishment of a COVID-19 Gender Working Group to implement recommendations from a note on gendered impacts of COVID-19; (iv) gender responsive budgeting and collection of gender-disaggregated data; and (v) measures to ensure the business and investment climate is gender-responsive.

Program Achievements:
• Overall Effectiveness and Relevance:
- Strategically aligned with Fiji’s National Development Plan 2017–2036.
- Program design and monitoring framework appropriate.
- All outcome indicators met or substantially met; gender-responsive budgeting targets exceeded.
- Policy reforms likely sustainable due to alignment with national strategies.
• Reform Area 1 – Fiscal Management:
- Improved fiscal management and strengthened budget systems.
- COVID-19 supplementary response budget passed, ensuring fiscal- discipline.
- Public Financial Management (PFM) Improvement Program implemented.
- PEFA assessment completed to guide PFM roadmap.
- Introduced gender-responsive budgeting.
• Reform Area 2 – SOEs and Public-Private Partnerships (PPPs):
- Enhanced policy, legal, and institutional framework for SOEs and PPPs.
- SOE reforms and divestments implemented (Food Processors Fiji Ltd. and Fiji Rice Ltd.).
- Training programs conducted for directors and senior management, including women.
• Reform Area 3 – Business and Investment Climate:
- Strengthened legal frameworks for investment, trade, trademarks, patents, and competition.
- Simplified building permit approvals via Regulation of Building Permits Act 2017 and online portal.
- Established Personal Property Securities Registry to improve access to finance, especially for women-owned businesses.
- Introduced COVID-19 support measures: reduced statutory contributions, paid sick leave, tax deductions, and relief payments.
- Established COVID-19 Response Gender Working Group to ensure inclusive recovery.

• Project was co-financed by Asian Development Bank also with that they also lending a regular loan of $200 million USD
• Collaborative effort from 2 other countries from Australian government lending $0.7 million USD grant and New Zealand government lending $1.5 million USD grant.
• Swift Implementation shown as AIIB approved the program within two months and disbursed funds within a week, demonstrating rapid crisis response. • Program was rated highly successful by ADB; all outcome indicators met or substantially met.

•    Institutional strengthening:
-    Improved budget systems and public financial management (PEFA assessments, gender-responsive budgeting).
-    Strengthened policy, legal, and institutional frameworks for SOEs, PPPs, and investment climate.
•    Human resource development:
-    Training programs for SOE directors and senior management, including a high percentage of women.
-    Development of technical working groups across government agencies to implement reforms.
•    Knowledge and procedural improvements:
-    Piloting and institutionalizing gender-responsive budgeting.
-    Establishing systems like the Personal Property Securities Registry and online building permit portal, which improve technical and administrative capacity.