Pacific grants often fail to reach the right people, leaders warn

Billions of dollars in grants sent to the Pacific over the past four decades have often failed to reach the right people at the right time, Fiji Business Disaster Resilience Council (FBDRC) chairperson Karunesh Rao told Parliament yesterday.

Mr Rao described the nation’s reliance on grants as a “double-edged sword.” “Yes, we are beneficiaries of a lot of grants and support that come into the country, but where do those grants come to?” he said during submissions to the Standing Committee on Foreign Affairs and Defence on the proposed Pacific Resilience Facility (PRF). “The grants are then channelled through the Government.”

Fiji Commerce and Employers Federation (FCEF) chief executive Edward Bernard noted that most post-disaster support comes in the form of loans rather than grants, leaving small businesses deeper in debt after disasters. “Debt after disaster is not resilience. It’s vulnerability extended,” Mr Rao added.

FCEF business development manager Priscilla Ram said timely recovery support could change the mindset of entrepreneurs. “I think, as a beginning, we have failed to focus on the recovery aspect for the private sector,” she said.

“If you are able to provide timely response, that would change the mindset for people to get into businesses.”

Mr Bernard also highlighted the Access to Finance Act passed last year, which established peer-to-peer lending and equity crowdfunding to expand financing options beyond grants and loans for small businesses.

“That’s going to expand the menu of finances available for MSMEs,” he said.

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