Suva, Fiji, March 6th, 2024 – In a stride towards sustainable development, the Fiji Development Bank (FDB) formalized a Memorandum of Understanding (MOU) with the Agence Française de Développement (AFD) and the Global Green Growth Institute (GGGI) to launch the Green Growth and Climate Finance Cooperation program.
Through funding support from AFD, GGGI will work with the FDB to develop its loan products, origination and financing strategy for green and climate-friendly products and services, as well as enhance FDB’s climate impact measurement and reporting.
Over the next 3 years, the program will also support FDB in enhancing its Climate Finance Strategy to accompany the ramp-up in the bank’s adaptation and mitigation financing and develop resource mobilization and risk management plans to meet the expected demand for climate-related loan products.
The FDB and AFD have an existing portfolio guarantee facility under the EURIZ scheme. The EURIZ scheme is a European Union-funded guarantee facility that aims to target the financially underserved Micro-, Small- and Medium-Sized Enterprises (MSMEs) in the Africa, Caribbean Pacific (ACP) countries. For FDB to harness the EURIZ facility to its full benefit, it needs to generate loans that align with the EURIZ criteria. This program will help FDB develop loan products that align with these criteria.
In his opening remarks, Ambassador of France H.E. François-Xavier Léger to Fiji stated “we have developed a very good relationship, and our determination is to move forward to implement the priorities of the Government of Fiji especially those related to climate change, social and financial inclusion. I would also like to say we are happy to work with the European Union in that regard, especially we are very grateful to the European Union for its support of this mechanism, and it demonstrates, here in Fiji we do not only work as France, but as team Europe.”
Ms. Virginie Bleitrach, AFD Regional Director for the Pacific shared “the important role institutions such as FDB and AFD play and will need to play in the coming years to contribute to the fight against climate change, biodiversity loss or further social and financial inclusion. This partnership is setting the way for achieving FDB’s ambition in that space and we are proud to be working with them and the GGGI for the people of Fiji”.
Mr. Saud Minam CEO Fiji Development Bank stated “this MOU is very timely asa we are about to embark on new journey where we need to make sure that our policies, procedures and processes are aligned towards Sustainable Finance. Given the support from AFD through GGGI we will be able to get Subject Matter Experts to drive this initiative which will help FDB in the short and long term. We would like to thank AFD for becoming such strong partner in short period of time.”
The program also signals a new era of collaboration between agencies with a common goal. The focus of the program is on enriching FDB’s loan products, origination, and financing strategy, emphasizing green and climate-friendly products and services. Furthermore, it aims to elevate FDB’s climate impact measurement and reporting capabilities, aligning with global efforts to combat climate change.
Mr. Norbert Maass, GGGI Country Representative, Fiji, Kiribati, Tonga, and Vanuatu outlined “the focus of the Green Growth and Climate Finance Cooperation program extends beyond cooperation through knowledge sharing as GGGI aims to work hand in hand with FDB to maximize the potential of the EURIZ facility. This collaboration promises not only financial empowerment but also opens doors to investment opportunities in green growth.”
The MOU demonstrates the commitment of GGGI, AFD, and FDB to tackle climate risks head-on. The Green Growth and Climate Finance Cooperation program is poised to be a transformative force in Fiji and the broader Pacific region.