There are several reasons why Fiji is an excellent place to invest. It has:
An excellent strategic position, as the regional and global hub for the South Pacific-Asia region and for global communications and transportation (shipping and air travel) routes;
A package of trade and investment incentives including duty concessions, investment allowances, tax exemption and tax free regions;
A low corporate tax rate of 20%;
A government that welcomes and supports local and foreign investment and is focused on reforms that will continue to improve business conditions;
State of the art telecommunication infrastructure that provides links through fibre optic cable connections to the rest of the world;
A well developed infrastructure, including electricity, water supply and internal communications;
Land available at reasonable rates for factory and building construction;
Well developed banking and financial institutions providing full financial services;
Fast registration of foreign investment projects;
A well educated workforce with a literacy rate of 93.7%;
Good health and medical facilities including a modern private hospital and medical centers;
As a signatory, access to various trade agreements, frameworks and memorandum of agreements. This allows for better market access and provides a conducive investment climate and opportunities with other countries. The trade agreements are as follows:
Bilateral Trade Agreements - The non-reciprocal bilateral agreements that Fiji had with Tonga, Vanuatu, Papua New Guinea and Cook Islands have expired, however, Fiji is undertaking national consultations with Pacific Island Countries - such as the Cook Islands - to renegotiate bilateral agreement(s). Fiji is also negotiating a renewed non-reciprocal bilateral trade agreement with Tuvalu.
Regional Trade Agreements which includes the Melanesian Spearhead Group (MSG) Trade Agreement with PNG, Vanuatu and Solomon Islands; South Pacific Regional Trade & Economic Cooperation Agreement [SPARTECA]; Pacific Island Countries Trade Agreement [PICTA];
Multi-lateral Trade Agreements where Fiji is signatory and member of the World Trade Organisation (WTO), since 14 January 1996.
Framework Agreement which includes the Fiji-Australia Trade and Economic Cooperation Agreement [FATERA]; Pacific Agreement on Closer Economic Relations [PACER].
Fiji has established Memorandum of Agreements with India and China - The bilateral agreement on agriculture was signed with China in August 2005. In addition, to promote collaboration in the field of transport infrastructure development and civil aviation, a Memorandum of Understanding (MOU) was later signed between Fiji and China in 2006. Additionally, a Memorandum of Understanding (MOU) was signed between India and Fiji in 2005 and the two countries had agreed to reactivate the MOU in late 2008. Under this MOU, India had made a commitment to assist Fiji in developing the ICT industry in Fiji.
Potential Investment Areas
The main areas of Investment in Fiji include:
Information Communication Technology (ICT)
Small and Micro Enterprises
One of Government's key objectives is to attract much needed private sector investment into the country. The Fiji Islands offers private investors an attractive and generous package of incentives and concessions, including:
- Accelerated depreciation allowance
- Investment allowance
- Loss Carried forward
- Duty concessions on production inputs
- Low fiscal duty of 5 % (+ 15% Value Added Tax) on capital items (machinery used for converting/processing raw materials).
- Duty suspension scheme
- Tax deductions on export income
- Import Substitution and Export Finance Facility of the Reserve Bank of Fiji
- Tax Free Region Incentives
- Emploment Taxation Scheme
For the most updated set of trade and investment incentives, please refer to the Fiji Revenue & Customs Authority http://www.frca.org.fj/