Fiji's development funding surges to record $1.5 bn, says Lowy report

Fiji's Official Development Finance (ODF) reached a record $FJ1.5 billion in 2024, more than doubling pre-pandemic levels as Australia, the World Bank and other multilateral lenders significantly increased support for the country, according to a new Lowy Institute report.

The Pacific Aid Map 2026 Key Findings Report, released yesterday, found Fiji received $FJ1.5 billion in development finance in 2024, up 64 per cent on 2023 and about 80 per cent above the 2015–2019 average.

The report attributed the increase to Fiji's shift towards a more reform-minded government, supported by higher levels of funding from Australia, New Zealand and multilateral development banks.

The World Bank and Australia were Fiji's largest development partners in 2024, each providing $FJ254 million, accounting for 25 per cent of total development finance.

They were followed by the Asian Development Bank with $FJ186 million (19 per cent), the Asian Infrastructure Investment Bank with $FJ113 million (11 per cent) and New Zealand with $FJ48 million (5 per cent).

According to the report, 43 per cent of Fiji's development finance came as grants, while 57 per cent was provided through loans, with the World Bank, Asian Development Bank and Asian Infrastructure Investment Bank remaining the country's largest lenders.

The findings come weeks after Fiji and Australia signed the Vuvale Union and Ocean of Peace Alliance treaties, under which Australia pledged more than $FJ1.57 billion over the next decade, subject to parliamentary ratification.

The report said the Pacific was experiencing a broader shift in development financing, with multilateral lending expected to play a larger role as traditional donor budgets came under increasing pressure.

Meanwhile, Fiji's public debt is projected to reach 84.8 per cent of GDP by July next year, according to the 2026–2027 National Budget.