Nikhil Aiyush Kumar 
Aerial shot of Suva City [File Photo]
Investment activity in Fiji is gradually improving, but the growth was still slow last year, according to the Reserve Bank of Fiji.
One key area being monitored is building permits as up until September, the number of building permits issued dropped by 35.9 percent.
However, the value of those permits stayed high, showing that the cost of construction has gone up significantly. This increase in costs is mainly due to rising prices of building materials and a shortage of skilled workers.
Although fewer permits were issued, the total value of permits issued was nearly the same as last year, reaching 97.7percent of last year’s figures.
This highlights how expensive construction projects have become. The Reserve Bank of Fiji explains that global supply chain problems and difficulties in getting materials have contributed to these higher costs.
At the same time, there has been a rise in new loans for investment purposes. As of November, commercial banks have approved $883.6 million in new loans, a 25.9 percent increase compared to the previous year. Most of these loans are for building and construction projects, showing that people are still interested in investing in these sectors despite the challenges.
However, experts warn that the construction industry may continue to face problems, such as high material costs and a lack of workers. These challenges could slow down the growth of construction and development projects in the future.
