Informal Economy

2nd Dialogue between MSMEs and Government contributes to a major breakthrough

The ILO continues to promote social dialogue between MSME’s and the Fijian Government, to collectively discuss challenges and develop solutions through policies that will enhance COVID-19 recovery, decent jobs and economic growth.

News | 07 February 2022
Contact(s): bernard@ilo.org
Virtual dialogue participants
It was jubilation for Micro, Small & Medium Enterprises (MSME), particularly those engaged in the creative and entertainment sector when the Fijian government lifted the almost two-year curfew. “From Monday 7 February (2022), which is from midnight tonight, the curfew will be lifted. Not moved. Not shifted. Lifted, completely”, announced Mr Aiyaz Sayed-Khaiyum, the Minister for Economy of Fiji.

The Fijian Governments Facebook post - 6th February 2022
The curfew was identified by many cash-flow struggling MSME’s, including those in the informal sector, as a barrier to generating income and sustaining their enterprises. This challenge, in place since the first and second waves, was highlighted strongly by MSME representatives at the 25th January 2022 ILO organised and Fiji Commerce & Employers Federation (FCEF) supported dialogue with the Ministry of Commerce, Trade, Tourism and Transport (MCTTT). The Government was represented by the Minister of Commerce and Trade, Mr Fiyaz Koya and the Permanent Secretary, Mr Shaheen Ali.

Fiji Village reported (26th January 2022) that “Ellana Kalounisiga of Knox Entertainment says one of the biggest challenges for the performing arts sector across Fiji is the curfew. She further says it affects the performing arts sector and the tourism sector.” On behalf of the MSME’s, Ms Kalounisiga called for the removal of the curfew.

The same news agency reported that questions relating to the curfew had been sent to the Permanent Secretary for Health, Dr James Fong. On 29th Janaury2022, Fiji Village reported that Dr Fong responded by saying that he will review the situation of curfew, sending some hope for MSMEs.

Dialogue Programme
Opening the 2nd dialogue, Mr Matin Karimli, the ILO Director for Pacific Island Countries, emphasised the importance of social dialogue. “I would like to highlight that in our last dialogue, suggestions by MSME’s, particularly on cash flow, saw government introduce the concessional loan and loan guarantee scheme. This is one but a very good example that such dialogues work and through private sector and government partnerships, business enabling solutions can be found”, said Mr Karimli.

The second major challenge highlighted by MSME’s at the dialogue was the high cost or financial burden to comply with COVID-19 Business Protocols. The Fiji Broadcasting Corporation reported the Chairperson of the Young Entrepreneurs Council, Mr Watisoni Nata say “for a business that employs five or less staff, they approximately spend around $1,670 monthly to purchase masks, hand sanitizers, decontamination, and pay staff who are in isolation.”

Ms Marita Manley of Duavata Collective, representing small accommodation operators said that many of her members were not operating. “They are not able to meet the costs for isolation facilities and testing", she said.

The Project Coordinator for the UN joint Informal Economies Recovery Project said that the success of these dialogues has been the genuine and continued partnerships between the MSMEs and Government. “The last dialogue organised by the project was in June last year and focused on the COVID-19 Business Protocols and providing inputs to the national budget. However, there has been interfaces between two parties at the technical level through many trainings and workshops organized by the project”, said Mr Bernard. He further added that the formalization of creative associations through the project has also empowered and elevated their participation in such national policy dialogues.

The ILO will continue to promote social dialogue between MSME’s and Government, to collectively discuss challenges and develop solutions through policies that will enhance COVID-19 recovery, decent jobs and economic growth.


Reference Material:

One of the biggest challenges for the performing arts sector across Fiji is the curfew - Ellana Kalounisiga

I will review the situation for curfew – Dr Fong

MSME’s need assistance not penalties: Nata

Small accommodation operators remain closed

Opening speech by the Minister for Commerce, Trade, Tourism and Transport

A recording of the dialogue can be accessed here