[Photo: Supplied]

Millions of people across the Pacific including Fiji stand to benefit from a co-investment approach to overcome a massive infrastructure gap.

The investment approach can also yield significant capital inflows, jobs and more sustainable economic growth in the region.

A guide released yesterday by the Pacific Islands Investment Forum and International Finance Corporation identifies options for establishing a co-investment function that will help direct long-term capital into attractive projects, boosting investment in industries, services and infrastructure across the Pacific.

The Forum is a regional network of 18 provident, superannuation, trust and sovereign wealth funds from 12 countries with approximately US$8 billion under its management.

The co-investment approach will allow the Forum to channel capital within the Pacific region and provide access to high quality cross border investments that would have been out of reach for most member states.

The guide identifies six co-investment options, weighing up elements including level of control by investors, flexibility, and barriers to setting them up.

Forum Chair, Pauli Prince Suhren says investments in industries, services and infrastructure represent a huge opportunity for our members.

Prince Suhren adds there is a clear need for capital as well as a steady stream of opportunities, even more so in the wake of increased fiscal constraints due to the COVID-19 pandemic.

He adds Pacific nations face many challenges in the delivery of essential infrastructure in sectors such as sustainable energy, health, transport, logistics and telecommunications.

It’s estimated that from 2016 through to 2030, US$46 billion in investment is needed to overcome the region’s infrastructure deficit.

The release of this guide comes amid a growing recognition internationally of the need to reduce emissions and avert a climate disaster.

Pacific nations are among those most at threat from harmful climate change.

The co-investment model offers a conduit for sustainable investment in climate-smart infrastructure and an opportunity to crowd investors into green solutions.