MICROCAPITAL STORY: Fiji National Microfinance Unit Targets 7,000 New Microfinance Savings Accounts This Year

The Fiji National Microfinance Unit (NMU), established in April 1999 under Fiji’s Ministry of Finance to oversee the implementation, monitoring and evaluation of the nation’s microfinance activities, has set country-wide growth targets for the coming year. The NMU is targeting national growth of 7,000 new microfinance saving accounts, the issuance of 2,500 new loans and 2,000 repeat loans to micro-entrepreneurs. Additionally, the NMU will introduce microfinance to the two remaining microfinance-less provinces in the country.

The NMU provides support and guidance to the nation’s microfinance institutions (MFIs) through a number of activities including: providing financial assistance, spurring self-employment ventures, promoting household savings, assisting household business operations and offering basic business training.

Savenaca Nacanaitaba, the Chief Executive Officer of the National Center for Small and Micro Enterprises Development, revealed the projections to Fiji’s Department of Information in an exclusive interview. Mr. Nacanaitaba indicated the center will set up a business incubator in Suva, the capital city, and is hoping at least 500 people will attend the business creation workshops based Competency based Economics through Formation of Enterprise (CEFE) training. Mr. Nacanaitaba expects CEFE business training graduates will establish 150 new enterprises during the year.

Mr. Nacanaitaba indicated the biggest obstacle in achieving targets will be the performance of clients in terms of repayment. Borrower repayment is reflected by economic conditions and Fiji’s macroeconomic challenges make it difficult for borrowers to make enough money to repay loans and to save.

Data from a 2005 publication, “Developing Micro Finance in Fiji: Challenges and Successes”, reveals as of December 2004, Fiji had total savings accounts of 6,038 and total loans of 3,179. More recent data was not available.

-Steven Craig

Additional Resources:

Fiji Government: http://www.fiji.gov.fj/publish/page_9958.shtml

Fiji CHRIS: http://www.fijichris.gov.fj/producers.aspx?ProducerID=7

National Center for Small and Micro Enterprises Development: http://www.ncsmed.org.fj/

Engaging Communities Conference 2005: http://www.engagingcommunities2005.org/abstracts/Kinivuwai-Lucy-final.pdf