Winning FDI Through Effective Investment

Facilitation

December 2-4, 2010 - Sydney,

Australia

0Mr. Ravunivadra Uluilakeba – Chief Executive Officer

Fiji Islands Trade & Investment Bureau

Why Good Facilitation Matters

• Overview of Fiji; economic & financial fundamentals

• Role & Functions of the Fiji Islands Trade & Investment Bureau (FTIB)

• FTIB’s Policy

• FTIB’s IPI Performance Results

• Strategies – Effective Facilitation

• How Effective Facilitation contributes to the economy

• Why Facilitate investment projects

• Way Forward

Presentation Outline

• Fiji is an archipelago of around 330 islands in the South Pacific approx. 2,700 kms

East of Australia• 1874 - British Crown Colony (October 1970 – Independence)

• Fiji’s population at 827,900 (Census 2007) : 57% Indigenous Fijians, 38% Indo-Fijians; and 5% Chinese, Pacific Islanders and foreign residents.

• The business language is English.

• Middle income country - US$3,343.7 per capita income in 2008

• Main sectors of the Fiji economy/sources of foreign exchange: Tourism; Textiles, Clothing & Footwear; Agriculture, Forestry & Fisheries; Mineral water.

• Main trading partners are Australia, NZ, the US, Japan and the Eurozone

• Well educated workforce - Literacy rate of 93.7%

Overview of Fiji

Fiji’s Exports to Major Markets 2006-2009

Source: Fiji Islands Bureau of Statistics 2009

204

69

162155

63

3

160

84

178172

57

6

182

83

179

219

64

4

195

82

135

187

63

14

0

50

100

150

200

250

Australia New Zealand USA UK Japan PRC

$Fm 2006

2007

2008

2009

Currency peg : F$1.00 = USD 0.4997 (5 July 2010)

Overview of Fiji….cont’d

Foreign Investment Projects Registered 2006 – 2009

429

487

29 40 36

197248

22 15 13

93

7 2

71

247

24 17 3 2

232

0

100

200

300

400

500

600

Tourism Services Manufacturing Resource Based Others

F$m

2006 2007

2008 2009

Currency peg : F$1.00 = USD 0.4997 (5 July 2010)

Overview of Fiji….cont’d

Role & Functions of FTIB

• Created in 1980: Marketing Arm of Government

• Key functions

Promoting;

Facilitating; &

Stimulating Investment & Exports

• Making potential investors aware FTIB will help get their project going / incentives available, etc

F T I B

Investment Policy

• Non-discrimination of foreign investors on grounds of nationality

• Investors are protected regarding acquisition of property

• Easy repatriation of profits; facilitated by Reserve Bank of Fiji

• Fiji Government highly supportive of exports/investment

2010 National Budget; 2009 Devaluation

• Foreign Investment Access

Foreign Investment (Amendment) Act 2004

• Exceptional to Fishing business; almost all investment areas can be fully foreign owned

- IPI Performance Results

- IPI Performance Results

- IPI Performance Results

Short listing Key Investment Factors• Fiji is a regional and global hub.

• Offering a package of trade and investment incentives - duty concessions, investment allowances, tax exemption and tax free regions;

• Low Corporate Tax Rate of 28%;

• A Government which welcomes and supports local and foreign investment, within its overall objectives of growing the various sectors of Fiji’s economy;

• State of the art telecommunication infrastructure;

• A well developed infrastructure, including electricity, water supply and internal communications.

• Availability of land at reasonable rates for factory and building construction.

• Well developed banking and financial institutions providing full financial services.

Short listing Key Investment Factors ….cont’d

• Fast registration of foreign investment projects.

• Well educated workforce with a literacy rate of 93.7%.

• Good health and medical facilities including a modern private hospital and medical centres.

• Fiji is signatory to various trade agreements, frameworks and memorandum of agreements:This allows for better market access and provides a conducive investment climate and opportunities with other countries. The trade agreements are as follows:

• Bilateral Trade Agreements

• Regional Trade Agreements

• Multi-lateral Trade Agreements 

• Framework Agreement

• Fiji has established Memorandum of Agreements with India and China

FTIB’s Strategies:

• FTIB implements Government policies

• We encourage investors to abide by Fiji’s laws and to take advantage of the incentives available to them

• FTIB promotes a pro-investor environment amongst Government agencies; encouraging foreign investors to remain in the country and continue to inject foreign income in the economy

• Internal system in place – Customer Relationship Management (CRM)

• Commitment of approximated timeline to investors in regard to responsiveness of services by FTIB – Proactive mode both in the Website and other mode of communication

FTIB’s Strategies (Effective Facilitation)

• Assigning FTIB Officers as:

- respective investment sector officers

- desk officers by different countries

• Previously FTIB Main Office & 1 Regional office At present FTIB

Main Office & 2 Regional Offices

• Drive for Multi-Lingo information in website and web-friendly structure with inclusion of downloadable options

• Sector Information development – implementation of case studies and comparison statistics

• Show Business Case, Case Studies/testimonies from investors to support Contact Information on website.

How Effective Facilitation contributes to the economy

Facilitation encourages investors to go through with their planned investment and increases the chances of a project getting implemented, thus:

• Increases the level of foreign remittances into the country;

• Encourages local and foreign partnership at the private and public sector level (through joint ventures).

• Increases competitiveness in the private sector and brings in a wider range of products for the local consumers to enjoy.

• Utilizes Fiji’s untapped resources where local investment is not able to develop.

• Increases employment opportunities in the country

• Increase level of income earned, which will increase consumer expenditure and therefore contribute to the Gross Domestic Product of the economy.

Why Facilitate Investment Projects

• Ensure Government’s goals are achieved according to the National Strategic Plan

• Increase implementation rate of projects – economic growth, employment creation, etc

• Ease of implementing projects by investors

• Investor friendly environment

• Encourage joint ventures

Case Studies – Successful Agriculture Projects

Name Registration Date

Implementation Date

Total Investment

Employment

Bio Fuels International Ltd

23 April 2009

The project is still in preparatory stage

$250,000 in fixed assets, $727,966.91 FJD in funds

6 -full time

35- seasonal

Fresh Fruit Fiji Limited

21 March 2007

Late August 2007

F$120,000 12 locals on full time

Case Studies – Successful ICT Projects

Name Registration Date

Implementation Date

Total Investment

Employment

ATH & In Touch Solutions of India

Local company

Will commence on 15 December 2010

F$2,500,000 50 full time staff

MindPearl Limited

16 March 2009

1 September 2009

$3,760,926 140 full time & 3 part time

Case Studies – Successful Tourism Projects

Name Registration Date

Implementation Date

Total Investment

Employment

Emaho Sekawa Limited

17 June 2008

20 October 2010

Fixed assets: $1,000,000; Funds $1,300,000

5-full time,

5 part time

Laucala Island Beach Resort

14 October 2005

October 2008 Approx: $200 -300m

Fixed asset: F$200m

360 People

Case Studies – Successful Fisheries Projects

Name Registration Date

Implementation Date

Total Investment

Employment

Sun Log Investment (Fiji) Limited

12 September 2007

1 January 2008 F$250,000 50 Full time

20 part time

J Hunter Pearls

11 June 2003

In 2004 More than $25,000

6 locals

Way Forward

• FTIB one stop shop concept, we will meet, assist & / facilitate all investor needs

• FTIB set up all over Fiji (West/North/Capital) can show you potential areas to set up your business, make all meeting arrangements, etc.

(Fiji Embassy can facilitate this end)

• Government and Statutory Bodies to improve resources in various departments with assigned KPIs so that efficient services are provided to investors

• New trade office in Shanghai, Fiji missions in Indonesia, South Africa & Brazil.

See our Website: http://www.ftib.org.fj/

F T I B

Fiji Islands Trade and Investment Bureau