HON. MANOA KAMIKAMICA - PARLIAMENTARY ORAL QUESTION ADDRESS

Honourable Speaker of Parliament, Turaga Bale na Tui Cakau,
The Honourable Prime Minister,
Honourable Deputy Prime Ministers,
Honourable Leader of the Opposition,
Honourable Cabinet Ministers and Assistant Ministers,
Honourable Members of Parliament,
Your Excellencies, High Commissioners, Ambassadors and Members of the Diplomatic Corp,

The People of Fiji who may be listening to this Broadcast through Walesi or livestreaming or listening on Radio today.
Bula Vinaka and Good Morning to you all.
 
Mr Speaker Sir, 
I rise to thank you for giving me this opportunity to take the floor and respond to the question posed by the Hon. Member. 
 
Mr Speaker Sir, 
The Government, through the Ministry of Trade, Small and Medium Enterprises and Communications has embarked on developing Fiji’s first – ever Micro, Small and Medium Enterprises Strategic Plan that will enable us to navigate the complexities of the business environment, seize opportunities and ultimately, achieve long-term success. 

MSMEs are a powerful force and as we all know they are the backbone of a country’s economy. In the global landscape, MSMEs account for 50-60% of the global GDP, represent 90% of businesses worldwide, and contribute to 70% of global employment.

In Fiji, there are approximately 30,000 registered MSMEs and that accounts for approximately 82%, if not more, if you consider the informal sector. In addition, over the last three years, the MSME Sector has contributed over $191million in taxes.

No doubt, a well-crafted strategic plan is an enabling tool to build capacity, organize participatory processes, and empower stakeholders to develop and grow MSMEs in Fiji. 

It will also connect and build the MSME ecosystem much better.

Mr Speaker Sir, 
Ultimately, the MSME Strategic Plan should pave the way towards increasing MSMEs contributions towards the Gross Domestic Product and the growing economy. Currently, it is estimated that MSME contribution to GDP seats around 18% to 20%.  
Having said that, the consultant, the United Nations Economic and Social Commission for Asia and the Pacific has been engaged and carried out in – country consultations from 26 February to 8 March 2024.

These consultations were carried out nationwide with various stakeholders such as the Ministry’s involved in the development or regulation of the MSME Sector, Business Service Development providers, Banking institutions, MSMEs in Nadi, Lautoka, Suva, Labasa and Savusavu and FinTech institutions as well, to name a few. 

We also had the MSME Conference on the 7 and 8th of March that was organised by Business Assistance Fiji that provided a valuable platform for MSMEs to raise their concerns and contribute towards the Strategic Plan formulation. 

Some of the key elements that was raised during the consultations and MSME conference and are covered in the plan include: 
1. Nationally defining MSMEs; 
2. Better coordination among Government agencies and development partners supporting MSMEs;
3. Increasing resource owners participation in business and commercial spaces. Improving women and youth participation in businesses as well.
4. Adoption of technology and safe transition into digital spaces 
5. Regulatory requirements and compliances for business registration, consumers and employers. 

BENEFITS OF STRATEGIC PLAN FOR MSMES AND INCREASE GDP’S CONTRIBUTION

Mr Speaker Sir, 
By addressing issues that were raised during the consultations, the plan seeks to maximise the MSMEs contribution to shared prosperity, inclusive economic growth, sustainable production and consumption, and reductions in inequality – essentially towards achieving the United Nations Sustainable Development Goals. 
 
In addition, the plan entails to focus on capacity development for MSMEs, including access to finance, formalisation, improving access to information, improving compliance, embracing technology and digitisation and green and blue economy growth. 
 
Access to finance is a key component – and that has been echoed in various platforms such as the MSME Conference last month. The plan aims to provide tailored financial solutions to help MSMEs navigate economic uncertainties and sustain their operations
 
Mr Speaker Sir, 
Hence, the MSME Strategic Plan will be a comprehensive and forward-thinking approach that supports the growth and development of MSMEs in Fiji – laying the groundwork for their sustained growth in the long term. 
 
In short, the overall vision is to provide a clear path toward increasing the GDP contribution of MSMEs to, of course, more than the pre – COVID level of 18 percent. This roadmap will also include specific timelines, roles, and responsibilities, serving as a blueprint for MSME development over the next five years.
 
It will also have a costing component on how much it will cost to implement these strategies. 
 
Therefore, the Plan will outline the national vision for MSMEs, the strategic direction of MSMEs (where we wish to take MSMEs) and how to get there. This roadmap will then consolidate from within Government and donor partners, to implement the strategies. 
 
Mr Speaker Sir, 
When we have an approved plan, resources such as financial and technical expertise will be better coordinated and channeled towards a concerted direction. 
 
This will in turn unlock the full potential of the MSME sector, driving economic growth, creating jobs, and fostering inclusive development and increase the MSMEs contribution to the economy. 
 
Thank you and Vinaka Vakalevu.