Remittances vital for investment: Mills

March 14, 2024 6:36 am

The International Monetary Fund reveals that Fiji has stronger remittances, but the majority of these remittances are used for consumption rather than investment.

IMF Mission Chief to Fiji, Marshall Mills, stresses that for Fiji to get the most benefit out of migration, it needs to encourage the remittances to be used for investment.

The IMF Mission Chief highlights measures for how Fiji can address this concern.

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“How to do this, many of the things that I’ve been saying before, make it easier to run a business. The ease of doing business, we find, is a key variable in how much remittances are used for investment versus consumption.”

IMF Mission Chief to Fiji, Marshall Mills

Mills believes that these can also be a response to our migration issue.

“The other measure that’s very effective is investing in the people in the home countries through training, education, and health. These investments actually encourage migrants who’ve already left to invest in their home country, so invest in human capital as well.”

Minister for Finance and National Planning Professor Biman Prasad states that the government is working on promoting financial literacy to address the matter.

According to the Finance Minister, the government hopes to promote constructive investments with remittances by equipping people with the appropriate information and resources, which would further boost the nation’s economic growth.