Overview
The Fijian government is committed to transforming Fiji into a leading digital economy. The country is actively participating in several digital economy initiatives, including the Pacific eCommerce Initiative, the Pacific Digital Economy Program (PDEP), and the Digital Government Transformation Program. Due to its strategic position on the Southern Cross fiber optic cable network, Fiji benefits from some of the lowest internet costs and highest performance levels worldwide.
Fiji’s National Digital Strategy, currently under development, aims to provide a comprehensive roadmap for the country’s digital transformation. Key priorities include expanding network access to underserved areas, automating e-government services through the digital FIJI portal (especially for registrations, licensing, and fee collection), enhancing shipment pre-clearance processes, and establishing a national single window clearance system.
In addition, the Fijian government is undertaking a comprehensive review of its ICT network, with a focus on bolstering cybersecurity practices across government operations. Recognizing the importance of keeping pace with technological advancements, the government is also prioritizing the development of legal frameworks to support and regulate emerging technologies such as artificial intelligence (AI), fintech, cybersecurity, and banking.
Market Challenges
Regulatory environment
Fiji has yet to develop a comprehensive legal and regulatory framework for data privacy and protection or an integrated strategy to promote eCommerce adoption. However, in 2020, the country completed its National eCommerce Assessment and subsequently established a National eCommerce Steering Committee to drive and accelerate eCommerce uptake nationwide. Significant strides have been made in modernizing customs, including the digital and organizational transformation of the Fiji Revenue and Customs Services (FRCS) and the fulfillment of 97% of its commitments under the WTO Trade Facilitation Agreement. These efforts aim to enhance border efficiency, reduce costs, and minimize the uncertainty and time required for goods clearance. As a WTO member, Fiji does not impose customs duties or taxes on cross-border transactions, in line with the existing moratorium on eCommerce.
The forthcoming National Digital Strategy will incorporate AI governance and cybersecurity measures, developed through extensive multi-stakeholder consultations to address key challenges and priorities. In support of this, the Australian government, under a Memorandum of Understanding (MOU) on Cybersecurity Cooperation, has committed to assisting Fiji in formulating a National Cybersecurity Strategy. This cooperation includes developing a comprehensive Computer Emergency Response Team (CERT) Study Report, operationalizing the CERT, and addressing emerging technologies such as responsible AI.
Fiji’s Online Safety Commission (OSC) serves as an independent regulator, working with social media platforms to promote online safety and deter misuse of personal information. The OSC operates under the guidance of the 2018 Online Safety Act, supplemented by other privacy-related laws such as the Constitution and Telecommunications Promulgations.
To further enhance commercial development and the adoption of new technologies, Fiji will need to review, update, and enact the necessary laws to create a stable and improved eCommerce business environment. Additionally, the Department of Information, Technology & Computing (ITC) Services manages government IT procurement through the online Tenderlink platform (http://portal.tenderlink.com/itcs).
Digital Trade Barriers
Fiji faces significant challenges in developing its ICT infrastructure due to its geographical landscape and dispersed layout. Digital transformation in rural and maritime regions lags behind urban areas, largely because of remoteness and limited accessibility. Consequently, around 2% of the population remains without network coverage for 2G, 3G, or 4G connections.
Another critical issue is enhancing financial literacy, particularly among the older population, as Fiji advances towards a more digital economy. A substantial portion of the population does not engage with traditional banking services, creating barriers to participation in eCommerce. Non-bank digital payment solutions—such as mobile wallets, digital wallets, cashless transactions, and cash vouchers—offer potential to extend financial services to unbanked or underbanked groups.
A 2022 Digital and Financial Literacy Survey by UNCDF revealed that only 16% of Fijian adults made an online purchase in the preceding three months, despite 45% of Fijians aged 15 to 74 having a payment card linked to a current account. It is important to recognize that Fiji’s eCommerce ecosystem is still in its early stages, with a limited range of products and services and insufficient logistics and delivery coverage across various regions. Key obstacles to adopting digital payments include regulatory gaps, low financial and technological literacy, and inadequate digital infrastructure.
Digital Trade Opportunities
Cross-Sector Enabling Technologies
Leading operators, Vodafone Fiji and Telecom Fiji are optimistic about Open RAN and are actively evaluating its feasibility. Vodafone Fiji and Digicel Fiji have rolled out 5G testing after having recently acquired licenses from the Fiji government. Digicel Fiji worked with Nokia to upgrade cell tower sites across the country for the rollout.
Fiji has a total of 6 active international subsea cables, the highest number of subsea cables for any Pacific Island country. Google, together with Amalgamated Telecom Holdings (ATH), AP Telecom, and Telstra, will build two new subsea cables to increase digital connectivity in the central Pacific. The two cables, Bulikula and Halaihai, will connect Guam and Fiji, and Guam and French Polynesia respectively.
Specific Industry Sub-sectors:
The Reserve Bank of Fiji launched the FinTech Regulatory Sandbox as a framework to foster the responsible development of innovative solutions in Fiji’s financial sector. A key objective of this sandbox is to expand access to essential financial services through platforms such as credit and debit cards, QR code-based payments, agent banking, online banking, mobile money, and other emerging digital financial services. These fintech applications will enhance convenience and extend financial reach to remote businesses and communities. Additionally, fintech solutions can provide the unbanked population with the electronic currency needed to engage in online transactions, while also enabling MSMEs, often hindered by strict Know Your Customer (KYC) requirements, to receive online payments.
Remittances are among Fiji’s top foreign exchange earners. Mobile money, or e-wallet services, were introduced over a decade ago, giving customers the ability to transfer funds, pay bills, and deposit or withdraw cash via mobile phones. Today, mobile money has become a widely used payment method in Fiji. Vodafone expanded its mobile wallet services (M-PAiSA) by introducing a “Scan to Pay” QR Code payment feature, allowing consumers to use their phones to pay for shopping, utility bills, and purchases from retail outlets.
Fiji stands out as the only country in the Pacific region with industry experience in global outsourcing services. The country’s business process outsourcing (BPO) sector provides contact center, human resources, finance and accounting, and IT helpdesk services to a wide range of industries, including airline reservations, hospitality and travel, logistics, healthcare, energy, call centers, and real estate. Fiji has successfully attracted well-known BPO investors such as Mindpearl, ANZ Pacific Operations, and Packleader Pacific.
Digital Economy-related trade events
The Fiji Tech Summit is the largest IT event in the Pacific Island region, held annually to bring together tech companies from across the region to showcase the latest innovations in technology. The summit provides a unique opportunity to network with decision-makers and industry experts, exchange ideas, and connect with potential business partners, all with the aim of reshaping the tech landscape in the Pacific. The two-day event features presentations, exhibitions, technical breakout sessions, consultations, and networking opportunities.