Fiji

Key trends and development challenges

Fiji is a small island developing state located in the Pacific sub-region of Melanesia. With a GDP of $5.44 billion, Fiji is the second-largest economy in the Pacific Islands and accounts for 12.8% of regional GDP. Fiji has a population of 924,000, resulting in a GDP per capita of $5,888 — the sixth-highest in the Pacific. The country’s exclusive economic zone (EEZ) spans more than 1.29 million square kilometres, the 26th-largest globally, and is comparable in size to the EEZ of Argentina.

Fiji historically had one of the lowest official development assistance (ODA) to gross national income ratios in the Pacific Islands region, with aid accounting for only 2.5% of national income between 2008 and 2020. However, in the wake of the pandemic, this share spiked to 15%. The jump was a product of both increased development support to the country during the pandemic and a contraction in Fijian incomes. In a global context, Fiji is only moderately aid reliant, ranking 48th among 125 developing countries. At 0.731, Fiji’s Human Development Index score ranks 111th out of 193 ranked countries.

Between 2008 and 2023, annual official development finance (ODF) disbursements to Fiji — including grants, loans, and other forms of assistance — averaged $294 million. As a share of Fiji’s total received development support, loan-financed projects have increased significantly. In 2008, loans accounted for just 5% of total incoming ODF, while in 2021 and 2022 they made up 51% and 79% respectively, before falling to 16% in 2023. Despite the increase in lending, the International Monetary Fund continues to rank Fiji’s risk of debt distress as moderate, in part a result of the high concessionality of the loans received by the country.

Development partners and sector trends

In 2023, three-quarters of the ODF support to Fiji came from its largest five development partners, led by Australia (40%), New Zealand (11%), the Asian Development Bank (11%), UN Agencies (8%), and China (6%). Fiji has one of the lowest levels of donor concentration in the Pacific, with its ODF coming from a variety of bilateral and multilateral sources.

The ODF project that saw the highest spending in Fiji in 2023 was the $30 million Australian-funded Fiscal Budget Support Program. The project was part of a broader set of budget support measures funded by Australia focused on the governance, health, and education sectors. Fiji also saw high volumes of spending by the Asian Development Bank as part of its Transport Infrastructure Investment Sector Project. China’s renovation of the Suva Multi-Purpose Sports Stadium cost an estimated $10 million.

ODF in Fiji was largely in line with regional trends in terms of sector distribution. Fiji’s only sectoral outliers relate to its below average share of spending on the energy sector and higher spending on industry, mining, and construction.

Since 2008, Fiji has received $466 million in development financing with a “principal” focus on either climate adaptation or mitigation. Over this same period, the country has seen $647 million in development financing with a “significant” focus on climate outcomes. Since the early 2010s, Fiji has seen steady growth in climate-targeting projects, a trend mirrored across most of the Pacific. As a share of total ODF received by Fiji, “principal” climate projects made up 10% of total spending, slightly above the regional average of 8%. Spending on “significant” climate projects in Fiji made up 14% of incoming funds, above the regional average. To date, the largest climate ODF investment in Fiji has been the Fiji Urban Water Supply and Wastewater Management Project financed by the Green Climate Fund, worth close to $20 million.

Between 2008 and 2023, Fiji received $117 million in development financing with a “principal” focus on gender equality, and $1 billion with a “significant” focus on gender equality. “Principal” gender equality financing constituted 2% of ODF received by the country, equal to the regional average of 2%. Over the same period, “significant” marked gender financing made up 22% of incoming ODF, matching the regional average of 22%. The largest project directly targeting gender equality in Fiji was the multi-year, $44 million Pacific Women Shaping Pacific Development program, funded by Australia.