IFC Partners with BRED Bank in FJD27 million SME Lending Boost in Fiji

The initiative is designed to help close Fiji’s SME financing gap, particularly in rural and outer island communities where access to banking services remains limited.

The International Finance Corporation (IFC) has announced a new partnership with BRED Bank (Fiji) Pte Limited aimed at expanding access to finance for small and medium enterprises (SMEs), unlocking up to FJD27 million ($12 million) in new lending to support growth and job creation across Fiji.

The initiative is designed to help close Fiji’s SME financing gap, particularly in rural and outer island communities where access to banking services remains limited.

Risk-Sharing to Unlock Capital

Under the agreement, IFC will provide an unfunded risk-sharing facility with a maximum exposure of FJD13.5 million ($6 million) through its Small Loan Guarantee Program. The investment is supported by the International Development Association’s (IDA) Private Sector Window.

The facility will enable BRED Bank (Fiji) to expand its SME loan portfolio to as much as FJD27 million, effectively doubling the lending capacity supported under the arrangement.

IFC will also provide advisory services to strengthen BRED’s commercial lending operations and scale up SME-focused financial products.

Supporting Rural and Outer Island Businesses

SMEs are widely regarded as critical drivers of Fiji’s economic growth and employment. However, many businesses face barriers to securing capital needed to expand operations, invest in equipment, or hire additional workers.

The partnership is expected to particularly benefit rural SMEs, including enterprises in:

• Outer islands

• Remote inland communities

• Agriculture and agribusiness

• Fisheries

• Small-scale tourism

These sectors are typically labour-intensive, meaning improved access to credit could translate into significant employment gains.

IFC estimates that expanded lending will generate both direct job creation within SMEs and indirect employment across supply chains and related economic activity.

Strengthening Private Sector Resilience

“With a strong and growing presence in Fiji, BRED Bank is well positioned to support the expansion and resilience of our SME sector,” said Pierre Tastet, CEO of BRED Bank (Fiji). “This collaboration strengthens our ability to extend financing and reinforces our relationship-driven approach, bringing tailored solutions closer to local businesses.”

IFC’s Regional Vice President for Asia and the Pacific, Sarvesh Suri, said the facility addresses a structural constraint in Fiji’s economy.

“Small and medium enterprises in Fiji face many constraints on their ability to raise capital, which prevents them from playing a full role in the economy,” Suri said. “With this facility, IFC aims to help close Fiji’s financing gap and support these vibrant businesses to create more jobs and growth.”

Backed by Regional Development Partners

The announcement builds on longstanding support from the governments of Australia and New Zealand, whose partnership with IFC has focused on strengthening private sector development and deepening financial markets across the Pacific.

As a member of the World Bank Group focused on private sector development, IFC has increasingly used blended finance tools such as risk-sharing facilities to mobilise capital in smaller and more vulnerable economies.

In Fiji, where SMEs form the backbone of local commerce and employment, the new facility represents a targeted effort to stimulate inclusive growth while expanding access to financial services in underserved regions.