The International Finance Corporation (IFC), part of the World Bank Group that focuses on the private sector, has announced a new partnership with BRED Bank (Fiji) Pte Limited aimed at bolstering growth and job creation in Fiji by facilitating access to finance for small and medium enterprises (SMEs). Recognized as crucial to the nation’s economic landscape, SMEs in Fiji often face significant challenges in securing the funding they need to expand, innovate, and create jobs.
To address these challenges, the IFC will provide a risk-sharing facility to BRED Bank (Fiji), with a maximum exposure of up to $6 million USD. This support comes from the IFC’s Small Loan Guarantee Program, which is backed by the International Development Association’s Private Sector Window. This initiative is expected to allow BRED Bank to issue new loans amounting to a total portfolio of up to $12 million USD in Fijian dollars to SMEs.
Additionally, the partnership includes advisory services from the IFC that will assist BRED Bank in scaling its commercial lending operations. This initiative is anticipated to have a significant ripple effect on Fiji’s economy by creating jobs directly and fostering broader economic activity across supply chains.
Of particular importance is the intention to extend lending to rural SMEs, especially those located in remote areas with scarce banking infrastructure. These rural enterprises, often operating in labor-intensive sectors such as agriculture, fisheries, and small-scale tourism, will greatly benefit from improved access to finance, fostering growth and increasing employment opportunities.
“The strong and growing presence of BRED Bank in Fiji positions us well to support the resilience and expansion of our SME sector,” commented Pierre Tastet, CEO of BRED Bank (Fiji). He emphasized that this collaboration not only enhances their financing capabilities but reinforces a relationship-focused approach to meet the needs of local businesses.
IFC’s Regional Vice President for Asia and the Pacific, Sarvesh Suri, noted the existing barriers that prevent SMEs in Fiji from adequately accessing capital, which inhibits their potential economic contribution. He reaffirmed the IFC’s commitment to bridge this financing gap, thereby empowering vibrant businesses to generate further jobs and growth.
This new partnership continues the longstanding commitment of the governments of Australia and New Zealand in supporting Fiji’s private sector and advancing financial markets throughout the Pacific region, cultivating a hopeful outlook for the economic future of the nation.