Fiji is facing critical water and sewage infrastructure gaps, rising debt vulnerabilities and slow progress on key economic reforms by the government, according to Fiscal Review Committee Chair Richard Naidu.
Speaking during the State of the Fijian Economy Dialogue 2026, Naidu says there is a clear lack of urgency in addressing Fiji’s major economic challenges despite the availability of policy advice, technical support and reform options.
He says while multiple solutions exist, what is missing is decisive action at the political level to address long-standing structural issues in the economy.
Naidu says water and sewage infrastructure remain one of Fiji’s most urgent national priorities and continue to be critically underfunded and underdeveloped.
He says enough has not been done to replicate the transformation of the former Fiji Electricity Authority into Energy Fiji Limited, which he says has become financially sustainable, operates with greater autonomy and has the capacity to invest for future expansion.
In contrast, Naidu says the Water Authority of Fiji remains heavily constrained, lacking financial autonomy and the ability to invest at the scale required to meet national needs.
He highlighted the low cost of water services, saying a person can pour about 1,400 bottles of water down a sink and pay only 15 cents, adding that the current pricing structure is not sufficient to sustain infrastructure upgrades.
Naidu says Fiji is still far from achieving a sustainable funding model for water services, warning that the sector remains one of the most neglected areas of infrastructure planning.
Beyond water, he warned that Fiji faces a broader triple threat of high debt levels, limited fiscal space to respond to shocks, and significant infrastructure demands that require billions in investment.
He says Fiji’s debt-to-GDP ratio limits the country’s ability to borrow or respond effectively to major crises such as cyclones, earthquakes or future pandemics.
Naidu says Fiji has been fortunate in recent years to avoid major natural disasters, but stressed that the country remains highly exposed and financially unprepared for a major shock.
He also pointed to global comparisons, noting that while Fiji has avoided severe events recently, neighbouring Pacific countries have experienced multiple Category 5 cyclones and earthquakes in the same period.
Naidu says this highlights the importance of building stronger fiscal buffers and ensuring preparedness for future emergencies.
He questioned whether Fiji’s current economic growth path is sufficient, saying growth below 3 percent is not adequate for long-term development needs and income growth.
Naidu says Fiji must avoid complacency in an increasingly competitive global economy, where stronger-performing countries can affect Fiji’s exchange rate, imports and overall cost of living.
He also raised concerns about the country’s tax base, saying Fiji has limited options for raising revenue and relies heavily on indirect taxation measures such as VAT.
Naidu says this makes fiscal decisions more constrained and reinforces the importance of economic growth as the main driver of government revenue.
On infrastructure, he says Fiji continues to lag in critical areas such as water, sewage, electricity, roads and bridges, many of which require urgent and large-scale investment.
Naidu also called for faster and more effective immigration reforms to address critical skills shortages that are slowing down major investment projects.
He says the country cannot move its growing investment pipeline forward without the necessary technical expertise.
He says Fiji needs engineers, builders, architects, accountants and other technical professionals to ensure projects are implemented efficiently and on time.
Naidu says reforming immigration settings to allow skilled workers into the country more quickly would help reduce bottlenecks and support private sector growth.
He says that addressing labour and skills constraints is a key part of creating an environment where businesses can invest, expand and create jobs.
