Fiji’s central geographic location on major trade routes, coupled with its strategic geological setting on the Pacific Rim of Fire, has historically attracted multinational exploration companies to invest and prospect for potential mineral deposits.
The Fijian Government recognises that foreign imports will play a major role in Fiji’s growth, and for this reason has actively sort ways to improve the investment climate for foreign investors, as well as local entrepreneurs.
There is no restriction on foreign investors acquiring a controlling interest in locally owned existing businesses in Fiji, however there is a limited list of areas restricted to local investors only, which is currently under review. Essentially, the restrictions/conditions for investment are designed to ensure that only those investments that are economically and developmentally desirable for Fiji proceed.
Foreign investors are most attracted to countries with an open exploration administration system where the rights of investors to develop their discoveries (or continue with promising exploration prospects) are clear. In Fiji the investor’s right to continue exploration / development programs is written in the Mining Act.
The guiding principle of Fiji’s mineral investment policy is that Government assumes that the grant of an exploration licence implies a right to proceed to eventual project development, subject to the licence holder maintaining a vigorous geological and/or feasibility study program approved by the Minister responsible for Mineral Resources.
The Government of Fiji is aware of the risks that mineral exploration and development companies take, and sees a role for itself in creating an investment climate in Fiji which offers investors security. The 1990 Constitution of Fiji provides a first stage guarantee for investors, in Section 9 against the compulsory acquisition of property (including mining tenements) except (and only with an order authorised by the Supreme Court) in certain specified condition spelt out in the Constitution.
In addition, Fiji is a signatory of the Multilateral Investment Guarantee Agency (MIGA). MIGA is an independent agency of the World Bank mandated to help facilitate increased flows of foreign direct investment to developing countries. Its core area of business is providing political risk insurance to foreign investors; available risk coverage includes war and civil disturbance, currency transfer/inconvertibility, expropriation and breach of contract. Plus Fiji is a member of the International Chamber of Commerce, and the International Centre for Settlement of Investment Disputes.