Fiji has become the first nation in the Pacific to help small and medium-sized businesses become resilient under the Global Climate Financing Partnership through launching a bold new partnership with the Asian Development Bank (ADB), the United Nations Development Programme (UNDP), and the United Nations Capital Development Fund (UNCDF).
The initiative will strengthen access to climate risk financing for micro, small, and medium enterprises (MSMEs), the backbone of Fiji’s economy.
Speaking at the launch in Suva, Permanent Secretary for Trade, Co-operatives, MSMEs and Communications, Shaheen Ali, described MSMEs as “significant contributors to our GDP”, making up over 80% of registered businesses, employing 60% of the labour force, and contributing nearly $380 million in tax revenue before COVID-19.
“These are not just numbers; they are the market vendors in Nausori, the fishermen of Vanua Levu, the artisans of Lau, and the young entrepreneurs in Suva. When we stand with MSMEs, we are standing with the future of Fiji. When they rise, Fiji rises with them,” Mr Ali said.
At the centre of the partnership is parametric insurance, an innovation that delivers quick, automatic payouts once rainfall or cyclone thresholds are reached. This removes delays and bureaucracy, ensuring that businesses can recover without losing momentum.
Its impact is already clear. In 2024, 535 individuals received payouts after heavy rainfall, while in March this year, more than 1,700 beneficiaries were supported following devastating floods. Farmers like Ms Priya Devi were able to replant sugarcane within weeks, and entrepreneurs like Mr Ovini Singh used payouts to resume operations and even set aside savings for future shocks.
Mr Ali underscored that resilience is about more than coping.
“Resilience is a farmer who can keep his land. A mother who can keep her stall. A family that can keep hope alive after the storm. This initiative represents recovery with dignity and renewal with confidence.
The initiative builds on Fiji’s 5-Year MSME Strategic Plan, which embeds climate resilience at its core. The Reserve Bank of Fiji, the first in the Pacific to take national ownership of parametric insurance, and donor partners including New Zealand, Australia, Luxembourg, the United Kingdom, and India are key supporters in advancing this agenda.
“This is the Fiji way: to meet challenges with courage, to forge partnerships grounded in trust, and to turn innovation into reality for our people,” Mr Ali said. “So today, let us be clear: when we stand with MSMEs, we are standing with the future of Fiji. When we invest in their resilience, we are investing in our nation’s resilience.”
“And when we launch this partnership, we are telling every market vendor in Nadi, every farmer in the interior, every artisan in the outer islands, every entrepreneur in Suva, you are not alone. We see you. We believe in you. And we will walk with you through every storm, side by side,” concluded Mr Ali.