SUVA, FIJI (14 March 2025) – In July 2024, the Ministry of iTaukei Affairs, Heritage and Arts (“Ministry”) and Merchant Finance Pte Limited (“Merchant Finance”) had entered into a strategic partnership through a Memorandum of Understanding (MoU). The MoU is aimed at providing the payment of interest subsidy, by the Fijian Government, for loans provided by Merchant Finance to resource owners. This collaboration supports the Fijian Government’s commitment in improving financial inclusion and economic empowerment for iTaukei people.
“Such partnerships with private sector players are crucial when creating economic opportunities for iTaukei business owners” said Permanent Secretary for iTaukei Affairs, Mr. Pita Tagicakirewa. “This agreement will enable Merchant Finance and the Ministry of iTaukei Affairs to complement ongoing economic development initiatives for resource owners while improving access to financial services and products for indigenous entrepreneurs.”
In addition to the Government’s efforts, Merchant Finance recently developed a dedicated team called Vanua Finance. Vanua Finance’s sole purpose is to increase iTaukei participation in the economy by providing finance to iTaukei owned businesses. Under the MoU, Vanua Finance will manage the government-approved interest subsidy scheme, which is designed to alleviate financial constraints and encourage investment in key selected sectors such as:
- Land subdivision
- Resource extraction
- Revenue generating activities in the Tourism Sector
- Commercial property investment
This scheme will provide iTaukei owned businesses with access to financing under favourable terms such as reducing borrowing costs and enhancing long term sustainability.
From July 2024 to December 2024, Merchant Finance has financed 104 iTaukei owned businesses with loans of $11m. Out of these, 19 loans fall into the focus areas of Vanua Finance where Government was requested to provide interest subsidy. To date, 7 loans under the interest subsidy requests have been approved, totalling $329,217.63. These projects include:
- Four land subdivision projects supplying a total of 90 lots
- One renewable energy initiative for solar-powered refrigeration and cooling systems for a village store based in the province of Lau
- Two tourism development projects aimed at enhancing local economic opportunities for their communities
Additionally, Merchant Finance is awaiting approval for the December 2024 submission to the Government, for the remaining 12 loans. Furthermore, Merchant Finance is currently working on the March 2025 submission for the next batch of customers.
The credit institution remains actively engaged in financing iTaukei owned businesses, as demonstrated by the introduction of the Land Subdivision Loan and MSME Loan products. These initiatives showcase Merchant Finance’s dedication to enhancing financial accessibility and empowering resource owners with tailored financial solutions.
Merchant Finance and the Ministry have reaffirmed their commitment to the effective management of the subsidy funds. Regular reporting, monitoring, and evaluation mechanisms are in place to track progress and measure the interest subsidy initiative’s impact.
This partnership represents a significant step towards facilitating iTaukei wealth development, easy access to financial resources, and driving long term economic benefits.
