DECISIONS MADE AT THE CABINET MEETING OF 6 FEBRUARY 2024

The Peoples’ Coalition Cabinet held its second meeting for the year on Tuesday 6th February 2024. Decisions made at the second meeting of Cabinet include the following:

1. 2024-2025 Fiscal Strategy
Cabinet endorsed the FY2024 – 2025 Fiscal Strategy. Section 12 of the Financial Management Act 2004 (FMA) requires the Minister responsible for Finance to table a medium-term fiscal strategy to Cabinet, prior to tabling in Parliament, thus the Financial Year 2024 – 2025 Fiscal Strategy was considered and approved.

The Coalition Government after it was sworn into office in December 2022, is following through on its objective to restore financial discipline, rebuild fiscal buffers, and put the public debt situation on a path of sustainability while reshaping Fiji's economic policies.

Apart from addressing the fiscal situation, the Coalition Government must carefully balance supporting economic recovery and investing in infrastructure maintenance and development, while being mindful of its obligation to provide improved public services such as for health, water, sanitation, social protection, education and national security. The 2024 - 2025 Fiscal Strategy will be tabled at the next sitting of Parliament.
 
2. Legislative and Regulatory Gap Analysis to Facilitate the Just Inclusive Transition for the Energy Sector in Fiji
Cabinet was updated on the ‘Legislative and Regulatory Gap Analysis to Facilitate the Just Inclusive Transition for the Energy Sector in Fiji’ study to be undertaken by the Ministry for Public Works, Meteorological Services and Transport, with the gracious support of the International Renewable Energy Agency (IRENA).

The objective of the study is to identify gaps and issues in the current legislative and policy frameworks necessary to foster an environment that accelerates renewable energy uptake in Fiji, while also encouraging private sector participation in the electricity sector.

Thorough consultations will be held as part of the scope of the study, that includes stakeholders from the public sector, utility companies, statutory organisations and the private sector. The study will be submitted to Cabinet for its consideration.
 
3. Update on Medicinal Cannabis
Cabinet approved the Policy Framework to establish the medicinal cannabis industry in Fiji, after it was updated on progress made, further to the cabinet decision in August 2023 to establish a Taskforce to carry out national and community consultations on the proposal. The Taskforce was also mandated to oversee the feasibility of this industry and assess the laws required for this emerging market.

The Taskforce has also carried out media engagements, public and community consultations and private sector engagements.

A total of 17 nationwide and community consultations from 9 October 2023 to 28 November 2023 were carried out providing the Taskforce with insights into the socio-economic impacts of this proposal.

The Taskforce registered a total of 513 participants, where 287 members of the public engaged during the community consultations, and 226 participants engaged during the public consultations.

The policy framework guiding the establishment of the medicinal cannabis industry outlines the Taskforce’s work to include (but not limited to), the following:

(i) develop a comprehensive feasibility study that includes conducting nationwide consultation;
(ii) establish a mechanism to allow foreign investors to establish the medicinal cannabis industry in
Fiji;
(iii) review and amend relevant laws to facilitate the medicinal cannabis industry in Fiji; and
(iv) devise and create the right and appropriate policies and laws for the medicinal cannabis industry in Fiji.

Cabinet noted that the Market Development Facility (MDF) will fund the feasibility study. In addition, the Ministry of Trade will enter into a three-year MOU with Aether Pacific Pharmaceuticals Ltd trading as Medical Kiwi, to establish a framework for cooperation and collaboration between Medical Kiwi and the Government for the development of medicinal cannabis in Fiji.

Medical Kiwi is a registered company in New Zealand. It is a market leader in New Zealand, in the cultivation and export of medicinal cannabis and cannabidiol to export markets using innovative science and technology.

Medical Kiwi intends to build an extraction and manufacturing facility in Fiji. The facility is aimed to eventually obtain the Good Manufacturing Practices certification for the nutraceutical and pharmaceutical markets.

When the medical cannabis industry is established by law and policy in Fiji for cultivation and export, Medical Kiwi would still be required to apply for the appropriate licence and adhere to the rules and regulations stipulated.
Medical Kiwi endeavours to invest a minimum of FJ$65 million within 3 to 5 years, subject to the extent permissible by law.
 
4. Korea International Cooperation Agency (KOICA) Grant for Renewable Energy Expansion and Capacity Development
The Korean Government will provide a grant of USD $7million for the following five components of the Renewable Energy Expansion and Capacity Development in Fiji project:

(i) Component 1: Rooftop solar Photovoltaic (PV) installation and operation for two government owned factories (Agro Marketing Authority and Food Processors Fiji Limited);
(ii) Component 2: Capacity building for Climate Change mitigation and renewable energy management;
(iii) Component 3: Feasibility study and tender document development for the renewable energy transition of climate vulnerable rural communities in Fiji;
(iv) Component 4: Capacity building for climate vulnerable rural communities on renewable energy and green economy; and
(v) Component 5: Installation and rehabilitation of renewable energy generation facilities for Fiji FREF and Beqa communities.

Cabinet approved the Record of Discussion between the Korea International Cooperation Agency (KOICA) of the Republic of Korea, and the Ministry of Public Works, Meteorological Services and Transport, to formally inaugurate the project.

The project will be completed in 2026, and project sites are located in Suva, Nausori, and rural areas as prioritised by the Government.

Government is currently working with KOICA and a Korean project developer called Envelop Company Limited (ECL) to develop the Fiji Agrophotovoltaic Programme (APVP).

This project is expected to benefit all 9,606 residents of Ovalau living in over 27 communities. The solar energy generation is expected to reduce 4,579 tonnes of greenhouse gas emissions per year which will reduce Ovalau’s current 100 percent dependence on diesel generators by approximately 57%.
The agriculture segment is expected to yield 101,417 kilograms of crops per year which is anticipated to stimulate commercial agriculture amongst low-income farmers in Ovalau.

The total cost of the project is approximately USD 14.6 million, of which USD 8 million has been provided by KOICA as a grant.

KOICA provided a grant fund of USD 2.68 million for the 1.55 MW Mua Solar Photovoltaic Project in Taveuni.

The project will deliver Fiji’s first ever grid-connected solar photovoltaic (PV) system with a battery energy storage system (BESS).

It will also enhance the existing generation capacity, which comprises the Somosomo Hydroelectric Scheme (700 kW) and the Waiyevo Power Station (2 MW), improving the living standards of the 9,000 residents in Taveuni and contributing to Fiji's goal of 100% renewable electricity generation by 2036.
 
5. Cabinet approves Phase II of the Building Safety and Resilience in the Pacific (BSRP) Project funded by the EU for Pacific ACP States
Cabinet approved a Memorandum of Understanding (MOU) between the Ministry of Rural and Maritime Development and Disaster Management (Ministry) through the National Disaster Management Office (NDMO) and the Pacific Community (SPC) for Phase II of the European Union Building Safety and Resilience in the Pacific Phase II Project (BSRP Phase II Project).

The BSRP Programme is a European Union funded project that aims to reduce the impacts of disasters, including those related to climate change, in African, Caribbean and Pacific (ACP) countries.

The BSRP Programme is a direct response to the priorities of ACP countries and the European Union (EU) identified under the 2009 European Union Strategy for Supporting Disaster Risk Reduction in Developing Countries.

The Programme is implemented by SPC and targets 14 Pacific Island Countries, including Timor Leste. The first iteration of the BSRP Programme in Fiji was the BSRP Phase I Project, which ran from 2016-2019 and provided funding support for the implementation of critical disaster risk management and climate change adaptation projects in the country.

Projects under Phase I included the following:
• relocation of Tukuraki Village in Ba, which faced severe devastation from a massive landslide;
• ongoing review of the Natural Disaster Management Act of 1998, aiming to enhance its effectiveness and relevance to current times; and
• upgrading and retrofitting of nine strategically located Emergency Operations Centers (EOCs) throughout the country. These EOC enhancements have bolstered the NDMO’s capacity to respond swiftly and effectively during emergencies.
The second iteration of the BSRP Programme will run from 2023-2026 and proposed activities under the
Project include:
• the upgrading of seismic monitoring equipment for the Mineral Resources Department;
• the establishment of a centralised disaster risk database for the NDMO;
• the continued upgrading of divisional and district EOCs; and
• the strengthening of governance and collaboration systems for Multi-Hazard Early Warning Systems.
The total funding for the Fiji BSRP Phase II Project is FJD $1,743,390.
The project will conclude in 2026.
 
6. Cabinet approves annual Ratu Sukuna Day celebrations
Cabinet approved that Ratu Sukuna Day will be celebrated as an annual event.

The Ratu Sukuna Day public holiday was reinstated on 29 May 2023 and a one-week celebration was held to commemorate his life and achievements.
 
7. Report and Way Forward on COP28 Outcomes
Cabinet was updated on the outcomes of the 28th Conference of Parties (COP28) of the United Nations Framework Convention on Climate Change (UNFCCC). COP28 was held between 28 November to 13 December 2023 in Dubai, United Arab Emirates (UAE).

The World Climate Action Summit brought together 154 Heads of States and Government. COP28 had an estimated 85,000 delegates in the Blue Zone; and several thousand public participants in the Green Zone – by far the largest COP hosted to date.

The Government delegation to COP28 was led by the Prime Minister and included four Ministers, two Assistant Ministers, a Parliamentary delegation led by the Speaker of the House, Government officials, one youth representative, and members from other agencies. The majority of the delegation were funded by different donor countries and agencies including the host government, Dubai, UAE.

COP28 brought a wave of new international pledges covering various sectors and issues such as fossil fuels, renewable energy, food systems, deforestation, nature, methane, heavy industry, health, and global cooling. COP28 parties also agreed to the operationalisation of the Loss and Damage Fund with pledges reaching over USD770 million to date. The fund aims to cover the shortfall in climate finance that does not address the irreversible losses and damages impacted on the most exposed and vulnerable. A new Loss and Damage Fund Board will discuss and agree on the modalities and mechanisms of the fund.

While there was frustration at the lack of ambition in the negotiations at COP28, it remains critical for Fiji and her Pacific neighbors to maintain our bold ambitions. It is important to regularly remind the world of the devastating impacts and costs of extreme weather-related events. Remaining actively engaged in COP negotiations and processes is a priority.

Additionally, more can be done at the next COP to build upon partnerships, projects and private sector engagement while capitalizing on Fiji’s role in the Pacific. This will take a more strategic and collaborative national approach across several agencies.

The outcomes of COP28 were a timely reminder that Fiji must also deliver at the national level, for example cutting emissions to show leadership on the global ambition to reduce 43% by 2030 and reach net zero by 2050. There could also be implications for Fiji on the supply, regulations, and policies of the energy sector especially in regard to the Just Transition Work Programme.
Adaptation projects (like relocation, coastal and flood protection, early warning systems) must be at the front and centre of Fiji’s response, and there are many lessons and common experiences shared such as including accessing finance, delivery capacity, and the importance of donor alignment and sequencing.

The way forward is a programme of work for climate change over 2024 such as ongoing COP negotiations and reporting processes of importance to Fiji, that deliver on national priorities, and that updates stakeholders of the commitments and actions required.
 
8. Cabinet establishes Anti-Pornography Taskforce
Cabinet approved the establishment of a Taskforce to undertake public consultations, to better understand root causes and formulate evidence-based recommendations on mitigating the impact of pornography and illegal content on society.

Three Opposition Members of Parliament will be invited to join the Taskforce.
The Taskforce will comprise representatives of the following stakeholder agencies and professionals who work in this and related areas:
(i) Ministry of Trade, Cooperatives, Small and Medium Enterprises and Communications (CoChair);
(ii) Ministry of Women, Children and Social Protection (Co-Chair);
(iii) Three members of the Parliament from the Government and three members of Parliament from
Opposition;
(iv) Office of the Solicitor-General;
(v) Ministry of iTaukei Affairs, Culture, Heritage and Arts;
(vi) Ministry of Youth & Sports;
(vii) Ministry of Home Affairs and Immigration;
(viii) Ministry of Education;
(ix) Cybercrime Unit, Fiji Police Force;
(x) Director of Public Prosecutions;
(xi) Online Safety Commission;
(xii) Representatives from Academia – Scholars with expertise in human sexuality, behavioural and attitudinal changes;
(xiii) Mental Health Professionals who are experts in counselling in addressing pornography consumption and mental well-being;
(xiv) Religious and Community leaders such as the Fiji Council of Churches in order to promote healthy attitudes towards sexuality and relationships;
(xv) Non-Governmental Organisations in particular those focused on mental health, and advocates for women, children and vulnerable groups;
(xvi) Telecommunications Authority of Fiji (TAF) as the regulatory authority; and
(xvii) Representatives of ICT service providers and experts from the technology sector to provide insights on the online distribution, and pornography consumption.
The Taskforce will be co-chaired by the Minister for Trade, Cooperatives, Small and Medium Enterprises, and Communications and the Minister for Women, Children and Social Protection.
The Taskforce may co-opt additional stakeholders as needed, based on specific expertise and subcommittees can be formed to focus on specific areas, with leads from the Taskforce.
The terms of reference for the Taskforce are as follows:
(i) To better understand the root causes in the prevalence of pornography use and illegal content in Fiji;
(ii) To explore the potential relationship between compulsive use of pornography and:
(a) Sexual aggression/violence;
(b) negative mental health; and
(c) unhealthy attitudes towards sex;
(iii) To undertake multi-stakeholder and nationwide consultations and assess the societal impact with focus on, inter alia child pornography, exposure of children to inappropriate sexual content, and sexual violence associated with excessive pornographic use; and
(iv) Propose recommendations to address the root causes of pornography use with a view to put in place necessary and comprehensive safeguards and protections, with special attention to children.

The Taskforce will work towards developing evidence-based policies, interventions, and educational programs to promote healthy attitudes towards sexuality, mental and emotional well-being, and societal norms.
 
9. Cabinet approves MOU with Australia under “Vuvale Partnership” on Cybersecurity Cooperation
Cabinet approved the Memorandum of Understanding (MOU) on Cybersecurity Cooperation between Australia and Fiji, under the Vuvale Partnership.

Cybersecurity is a cross-cutting and national issue. Currently, the Minister responsible for Communications has the responsibility of information and communication technologies (ICT) and online safety laws, including the Cybercrime Act 2021.

The Department of Communications is bolstering national cybersecurity efforts by involving all relevant agencies, including the Ministry of Home Affairs and Immigration in capacity building and other initiatives related to cybersecurity.

The Cybersecurity collaboration with Australia includes the following:
• development of the Computer Emergency Response Team (CERT) Study Report and the operationalization of the CERT;
• the development of the National Cybersecurity Strategy;
• technical cybersecurity collaboration regarding government infrastructure; and
• progressing regional priorities and common interests in regional and international forums including sharing experiences and best practices, which includes collaboration on new and emerging technology such as responsible Artificial Intelligence (AI).
The MOU will be valid for a period of 5 years.
 
10. Name Change for Ministry of Trade, Cooperatives, Small and Medium Enterprises, and Communications
Cabinet approved the inclusion of ‘Micro’ in the name of the Ministry of Trade, Cooperatives, Small and Medium Enterprises, and Communications.

From 1 August 2024, the Ministry will be called ‘Ministry of Trade, Cooperatives, Micro, Small and Medium Enterprises, and Communications’.
Micro, Small and Medium Enterprises (MSMEs) represent approximately 82% of registered businesses in Fiji, which is equivalent to approximately 30,000 businesses excluding unregistered and informally operating enterprises.

The micro business sector is an integral part of the MSME community and can be considered the engine of growth for the Fiji economy. This sector is one of the most vulnerable business segments still at the infancy stage of enterprise development, requiring mentoring and attention if they are to graduate towards 'Small' and 'Medium' enterprise segments. Their growth needs are markedly different to ‘Small’ and ‘Medium’ enterprises.

The micro sector thus needs recognition and support from the Government through policy initiatives, financing, training and market access. This validation will be enhanced through its recognition and inclusion in the Ministry’s name.
 
11. Cabinet approves Membership of the Global South Centre of Excellence Cabinet approved Fiji’s membership to the Global South Centre of Excellence (GSCE).
The GSCE was established by the Prime Minister of India, following discussions with leaders of tje Global South at the Voice of Global South Summit held from 12 – 13 January, 2023.

Prime Minister Hon. Sitiveni Rabuka participated at the inaugural session of the 2nd Voice of Global South Summit via a video conference on 17 November, 2023.

The GSCE was instituted as an integral component of Research and Information System for developing countries. It serves as a think-tank for developing countries to promote trade and investment, international economic and technical cooperation.

The Vision of GSCE is to foster knowledge sharing and mutual learning for building capacities and developing sustainable, affordable, and locally relevant solutions by collating resources, experiences and strategies to overcome developmental challenges the Global South faces, and promote globally inclusive partnerships.

Fiji was extended an invitation to become a member of the GSCE, fostering a collaborative partnership to enhance the exchange of ideas across continents.

This collaboration will encourage evidence-based policy frameworks, global public goods, and transformational opportunities for development cooperation, and encourage peer to peer learning in developing countries, with an emphasis on outcomes driven by collective action.
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