Minister for Trade, Cooperatives, and Small and Medium Enterprises, Manoa Kamikamica, has proposed the creation of a sovereign wealth fund.
This move, he says, will help the country prepare for future economic challenges and avoid the need to request assistance from its partners.
Kamikamica states that a sovereign wealth fund would involve accumulating funds over time, such as through taxes on natural resource revenues, to create a larger collection of money that could be used to combat economic dislocations.
“Then through very strict guidelines, the government can decide on where to spend that money and normally it’s for capital expenditure for issues like COVID-19 where there is a national crisis, cyclones, earthquakes those kind of dislocations, it’s certainly an idea but it’s worth a conversation in Fiji.”
Minister for Trade, Cooperatives, and Small and Medium Enterprises, Manoa Kamikamica.
Kamikamica says countries with successful sovereign wealth funds, including Norway, Aramco in Saudi Arabia, East Timor, and even Kiribati.
Creating a sovereign wealth fund is not a new idea, but Kamikamica believes it is worth considering for Fiji.
Kamikamica adds that such a fund could position the country well for the next 50 years and beyond, ensuring a stable economic future.