Fiji eyes sovereign wealth fund for disaster preparedness

Government is exploring a sovereign wealth fund model to bolster Fiji's disaster preparedness in response to United Nations findings that Pacific nations are underfunding disaster prevention.

Minister for Rural and Maritime Development and Disaster Management Sakiasi Ditoka revealed the proposal today while responding to concerns that Fiji allocates only 0.82 per cent of its national budget to disaster management.

“What we’re trying to do is have some kind of sovereign wealth fund kind of model that we are trying to propose to government, if we can have some funds put away for the rainy season,” Mr Ditoka said.

His comments came after UN Resident Coordinator Dirk Wagener on Monday said most Pacific governments allocate less than 1 per cent of their national budgets to disaster risk reduction.

The Ministry of Rural and Maritime Development and Disaster Management receives $39.4 million from the $4.8 billion expenditure budget for the 2025-2026 financial year.

Mr Ditoka said the budget allocation depends on context and what nations can afford.

“I think with other nations who can afford to have bigger budget slices for their disaster resilience, they can do that,” he said.

A sovereign wealth fund is a state-owned investment fund that sets aside money for future use, often drawn from a country’s surplus revenues.

The proposal would create a dedicated reserve specifically for disaster response and recovery, ensuring funds are immediately available when cyclones or other disasters strike.

Mr Ditoka said the ministry maintains year-round preparedness through community-based disaster risk management training and prepositioned non-food items placed around Fiji for quick response.

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