Water woes and labour gaps threaten Fiji's economy

Fiji's economic progress is being held back by critical issues in its water infrastructure and a significant lack of skilled labor, according to Richard Naidu, Chair of the Fiscal Review Committee. He highlighted these long-standing problems at the State of the Economy Dialogue 2026 in Suva, emphasizing the urgent need for action.

“

The country’s ageing water infrastructure and shortage of skilled workers are holding back economic growth and investment.

Naidu pointed out that the Water Authority of Fiji is financially constrained, preventing it from upgrading its aging systems and expanding services. He contrasted this with the successful transition of the Fiji Electricity Authority to Energy Fiji Limited, which now operates with its own balance sheet, enabling investment and growth. The Water Authority, however, remains restricted and underfunded despite increasing demands on its infrastructure.

“

Fiji has failed to deal with these issues with the urgency they require.

Current water charges do not generate sufficient revenue to fund the substantial improvements required for reliable service delivery. Naidu stated that the sector is far from being able to finance the necessary upgrades. He estimated that Fiji requires billions of dollars to modernize its water systems, sewage networks, roads, and bridges, a substantial investment needed to support economic development and improve the quality of life for its citizens.

“

The Water Authority remains restricted and underfunded despite growing pressure on ageing infrastructure.