Contact Details for Gilbert & Samuels Company Limited

For those that wish to contact us, our office is located at 19 Rosi Street, Off Nasinu Road, Suva.

Telephone contacts are : (679) 3342719 or (679) 9921427.

Our e-mail address is : info@gilbert.com.fj. Pls do not use investinfiji@gilbert.com.fj. That e-mail address is no longer available.

Fiji's strategic location an asset: Ratu Epeli

Read an article taken from the Fiji Times online, http://www.fijitimes.com.fj/, today, 6 May 2008.

It talks about a statement made by our Foreign Affairs Minister that Fiji enjoys a strategic location in the Pacific because of our location.

We need a good discussion of our competitive advantages and how we can put them to good use. We will also need to have a review of our past mistakes and learn from them.

If someone is interested in writing a book about our country's experience (economic and social, in particular) since 1970, can he or she e-mail me on investinfiji@gilbert.com.fj. I would be interested to do a joint detailed analyses on the topic.

In the meantime, read the article from the Fiji Times online, below.


"Fiji's strategic location an asset: Ratu Epeli, Tuesday, May 06, 2008, Update: 11:40AM

Fijis strategic location in the Pacific region is a great asset, says interim Foreign Affairs Minister Ratu Epeli Nailatikau.

He said the proper utilisation of air links to the destinations could also help establish trade links with more developed global economies.

At the same time the increased traffic through our airports in terms of passengers and cargo brings with it another dimension which is an increased movements and corresponding risks, he said.

While speaking at the third meeting of Asia/Pacific Regional Aeronautical Telecommunication Network Implementation Coordination Group (ATNICG 3), Ratu Epeli said Fiji was given the opportunity to host the event due to the ever evolving advancement of its aviation industry."

Colonial National Bank Interest Rates (Updated 1.4.08)

Schedule of interest rates released by Colonial National Bank are as follows :

• Business Banking Base Rate - 9.70%;
• Residential Property Loan : Variable Rate - 10.00%, 1 Year Fixed Rate - 8.00%;
• Investment Loan : Variable Rate - 10.00%, 1 Year Fixed Rate - 8.00%;
• Retail Term Deposits : 9 months - 2.00%, 1 year - 2.00%, 1.5 Years - 2.00%, 2 Years - 2.00%, 3 Years - 2.00%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

Westpac Interest Rates (Updated 1.4.08)

Schedule of interest rates released by Westpac Fiji are as follows :

• Business Lending Rate - 9.99%;
• Residential Property Loan : 1 year Fixed Rate - 7.75%;
• Investment Loan : Variable Rate - 9.75%, , 1 year Fixed Rate - 8.00%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

Does yachting have a future in Fiji?

Yachting can provide a lucrative foreign exchange earner to Fiji if the proper policies and regulations are put in place by Government and interested stakeholders. Owners of yachts are people of wealth who, apart from providing tax and other revenues to Fiji when they berth at one of our marinas, can also attract other wealthy acquaintances to visit the country by word-of-mouth advertising.

It is therefore essential that the right infrastructure and policies are in place to attract this target market.

Read related articles below taken from the Fiji Times.


"Marina planned for Mamanuca, Tuesday, January 22, 2008

An Australian investor plans to construct a multi-million dollar yachting facility to further develop the fastest growing segment of Fiji tourism.

Bill Bennett, the director of Amanuca Resort on Tokoriki Island believes Fiji has the potential to become one of the world's leading yachting destinations.

Mr Bennett, who has already constructed a 300 room four-star resort on the island believes the yachting facility could become the Mamanuca group's newest "craze."

"I have very big plans for Amanuca Island Resort and this includes a yachting facility. The deep-water marina that I plan to build on the island would be able to cater for 150 crafts and will also have a bunkering facility."

"During the construction phase of the resort, I spent more than $1.3 million on local labour and I plan to spend more while constructing the yachting facility," he said.

Mr Bennett said he "fell in love" with Fiji and completely confident of its potential when he first visited in 2003.

Mr Bennett and his family returned a year later, secured the property on Tokoriki Island and began construction of the resort. The resort opened for business early last year.

But while Mr Bennett plans to pump millions of dollars into the local economy, he is wary of new regulations reducing the length of stay for yachties from six months to three.

Mr Bennett said the reduced period compared to the six months offered by previous governments would see yacht owners travelling to neighbouring countries like Samoa, Tonga, Vanuatu, New Zealand and Australia.

He said such decisions would make it very hard for Fiji's yachting industry to grow."


"State firm on yacht policy, Tuesday, January 22, 2008

The interim Government remains firm in its stand to restrict yachts from staying longer than three to six months in the country as it continues to investigate drug smuggling and prostitution allegations.

In a statement yesterday interim Finance Minister Mahendra Chaudhry said the Fiji Islands Revenue and Customs Authority was forced to revise its policy on visiting yachts because the system was being grossly abused by people who were not genuine tourists.

Mr Chaudhry said Fiji was losing millions of dollars in duty from people who were abusing the system for their own interests.

Savusavu Yacht Club director Geoff Taylor earlier lashed out at the interim Government for restricting yachters from staying more than three months and according to Mr Taylor this had greatly affected tourism and Savusavu.

Mr Chaudhry said duty- free entry of yachts only applied to those bona fide tourists who were allowed a three-month permit which could also be extended to another three months.

"A total of six months in the country is more than sufficient," said Mr ChaudhryPeople come and park their yachts here for months at a time, they do business in Fiji, own residences and use Fiji as a duty-free base to fly out and do business elsewhere," he said.

Mr Chaudhry said yachts were becoming a highly suspected source for drug peddling, smuggling of contraband goods and even endangered species of flora and fauna, and prostitution.

"I expect marina owners here to understand why policy changes are being initiated," he said.

Meanwhile the Fiji Tourism Resource Owners Association feels the longer the yachties stay in the country, the better it will be for everyone especially those whose livelihood depended on yachts.

The association is concerned with the new policy directive issued by the interim Government to restrict yachties to only three months stay in the country, saying it was detrimental to the people there.

Association secretary Meli Bogileka said the livelihood of most islanders especially those in the Yasawa Group would be affected.

Several marina developers have expressed disappointment at the reduced stay, saying it would affect the viability of their ventures.

Vuda Marina in Nadi has confirmed putting on hold a multi-million project after the announcement of the reduced length of stay."

More on reduction in remittances to Fiji

There is more in the Fiji Times today on the possible reasons for the reduction in remittances to Fiji in 2007. Copied below is the article from the Fiji Times.


"Employers speculate on remittances drop, Thursday, January 17, 2008

A drop in remittances could be attributed to Fijians employed overseas investing there instead of sending money to Fiji, says Fiji Employers Federation chief executive officer, Ken Roberts.

Mr Roberts was commenting on figures released by the Reserve Bank of Fiji this week which showed money remitted by Fijians working overseas hit $183.7million in September last year a drop of almost 30 per cent when compared to the $260.7million for the same period in 2006.

Reserve Bank of Fiji acting deputy Governor Barry Whiteside said reasons for the decline could not be ascertained by the central bank.

Mr Roberts said it was strange that remittances were declining.

"I could not suggest the reasons either but maybe they are investing money overseas," he said.
The University of the South Pacific's associate professor in economics, Doctor Mahendra Reddy said there could be three reasons for the decline.

Firstly, Fijians working outside Fiji in the past two years had sponsored their loved ones overseas so they did not send money home, Dr Reddy said.

He said secondly, Fijians working overseas might be holding on to the money as a result of the law and order situation in the country.

The third possibility was that given the economic instability of the past two years, many people anticipated a devaluation of the Fiji dollar. Dr Reddy said Fijians might have stopped sending money home as a result of the rumours about a devaluation.

Colonial Bank's general manager John Harper said they were doing research with groups working overseas to find out the reasons behind the decline.

Mr Harper said he could not give details of inflow of remittances and outflow through Colonial as this was commercially sensitive information.

Capital outflows had also dropped, Mr Harper said."

Remittances to Fiji fall in 2007

The Reserve Bank of Fiji has announced that remittances to Fiji fell by almost 30% to F$183.7 million in September 2007, from F$260.7 million in the same period the previous year. This was after remittances had grown dramatically from F$50 million in 1999 to F$320 million in 2006.

The Reserve Bank has not been able to "explicitly ascertain" the reasons for the fall. One of the reasons given is that more remittances could now be coming in through informal channels than the formal ones.

It is interesting to note that the Reserve Bank has not done a bit more to analyse the real causes for the fall in remittances.

Some of the ones I can think of include :

1. Due to the events of December 2006, more prudent people would be opting to keep their hard-earned funds offshore rather than bringing them into Fiji;
2. If most Fiji citizens working abroad are being paid in USD which is the most usual currency of payment that people prefer, then given that the USD has been relatively weak, this may have resulted in the reduction in conversion of earnings to Fiji Dollars;
3. Insufficient data has been collected from all points where remittances could be coming into the country to enable comprehensive analyses;
4. In the second half of the year when interest rates in Fiji has fallen sharply, again more prudent people would have preferred to keep their funds offshore in countries where interest rates have been higher e.g. Australia, New Zealand;
5. Rather than send hard cash into the country, people are probably buying items from abroad and sending those to Fiji as the purchase prices offshore maybe more cheaper.

These are just some reasons that can be looked at in more detail.

It would be interesting to look at the actual figures and trends for further analysis.

NB : We provide consulting services in the areas of unit trusts, banking, capital markets and financial sector development. Check our profile at the right hand side of this blog to review the clients that we have done work for. To contact us, you can e-mail investinfiji@gilbert.com.fj or call telephones (679) 3396427 or (679) 9921427.

Colonial National Bank Interest Rates (Updated 2.1.08)

Schedule of interest rates released by Colonial National Bank are as follows :

• Business Banking Base Rate - 10.20%;
• Residential Property Loan : Variable Rate - 10.50%, 1 Year Fixed Rate - 8.00%;
• Investment Loan : Variable Rate - 10.50%, 1 Year Fixed Rate - 8.00%;
• Retail Term Deposits : 9 months - 2.00%, 1 year - 2.00%, 1.5 Years - 2.00%, 2 Years - 2.00%, 3 Years - 2.00%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

Westpac Interest Rates (Updated 2.1.08)

Schedule of interest rates released by Westpac Fiji are as follows :

• Business Lending Rate - 9.99%;
• Residential Property Loan : Variable Rate - 9.75%, 1 year Fixed Rate - 8.00%;
• Investment Loan : Variable Rate - 9.75%, , 1 year Fixed Rate - 8.00%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

ANZ Bank reduces rates further from 1 January 2008

ANZ Bank in Fiji will reduce interest rates on its lending products from 1 January 2008. Rates reduce by 0.5%. The new rates are as follows :

• Residential Property Loans : 1 year fixed rate, 8.00%; Variable Rate, 10.00%;
• Investment Property Loans : 1 year fixed rate, 8.00%; Variable Rate, 10.00%;
• Personal Loans : Secured, 11.70%; Unsecured, 14.20%;
• Business Index Rate : 10.50%.

For more information, pls call the ANZ Bank branch near you.

Westpac Interest Rates (Updated 3.12.07)

Schedule of interest rates released by Westpac Fiji are as follows :

• Business Lending Rate - 10.49%;
• Residential Property Loan : Variable Rate - 10.25%, 1 year Fixed Rate - 8.50%;
• Investment Loan : Variable Rate - 10.25%, , 1 year Fixed Rate - 8.50%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

Colonial National Bank Interest Rates (Updated 3.12.07)

Schedule of interest rates released by Colonial National Bank are as follows :

• Business Banking Base Rate - 10.20%;
• Residential Property Loan : Variable Rate - 10.50%, 1 Year Fixed Rate - 8.50%;
• Investment Loan : Variable Rate - 10.50%, 1 Year Fixed Rate - 8.50%;
• Retail Term Deposits : 9 months - 2.00%, 1 year - 2.00%, 1.5 Years - 2.00%, 2 Years - 2.00%, 3 Years - 2.00%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

2008 Fiji National Budget

The 2008 National Budget was delivered by the Minister of Finance on Friday, 23 November 2007. The Budget has some very favourable aspects that help with those running businesses or intending to set up businesses in Fiji. For a copy of the Budget, you can subscribe to our fijisale Yahoo Group and look under the Files section of the Group. A copy of the 2007 Revised Budget is also there for comparison. To subscribe to our Yahoo Group, just enter your e-mail address in the form at the top of this blog and click on the "Join Now!" button.

Telecommunications Sector Opens Up : More joy for businesses

It has been a good week for businesses in Fiji with the telecommunications sector opened up this week.

The week has seen all stakeholders including Government and the three sole telecommunications providers agreeing on some formula for compensating providers for cancellation of the monopoly rights that they have over the industry.

During the week, we have also seen two companies given licences to operate Voice-Over-Internet Protocol services in Fiji which will see calls overseas falling substantially. One of these companies, Connect Fiji, says in an advertisement in the Fiji Times, Thursday, 22 November 2007, that international calls will fall by up to 60% when its Broadband customers use its new VoIP service which will be available from Monday, 26 November 2007. To access the service, Connect's Broadband customers can dial 021 + country code + overseas number, using their Telecom Fiji telephone line.

Another company has also been granted mobile telephony licence and will soon be introducing its services. The company, Inkk, from Australia is, however, using Vodafone Fiji's network and will pay a charge for use of the network.

Internet charges by one of the providers, Connect Fiji, has seen speeds and download limits doubled with rates remaining the same making them one of the best in this area.

Over recent days, we have heard of more new products and services being offered, either by the existing companies or by the newly licensed ones. That is basically the effect of competition, when service providers will need to have good and innovative product development areas which will continually test the boundaries of services in terms of quality, range of services, to be on the one-up at all times in relation to one's competitors.

Businesses will benefit more as telecommunication rates reduce, markets will open up, bringing in more business.

For this at least we thank the authorities for taking action on some of the things that we have been hearing for many years.

Governor says that Fiji needs a sound financial system

The Governor of the Reserve Bank of Fiji, Savenaca Narube, has said that Fiji needs a sound financial system.

Having in place a sound financial system requires a set of preconditions, principal among which is the need for a stable political environment. Other requirements include having good regulatory and financial structures, good fiscal and monetary policy, transparency and good corporate governance among players in the financial sector.

Fiji has been fortunate to be able to attract foreign investment even with our past history. We have also been able to finance our development from domestic funds with institutions such as a Fiji National Provident Fund acting as a captive source of financing. However, we need to understand that we need to compete for the investment dollar. If we do not have in place the essential preconditions, we will not be able to continue to attract that foreign investment dollar.

Whether Fiji has these preconditions in place is subject to a good debate and I will not delve into that except to say that Fiji may lose out its prominence in the financial sector arena to other countries in the region such as Papua New Guinea and Samoa if we do not get up, review where we are, decide on where we want to go and move forward. I am talking here about financial sector development and planning.

In the meantime, I provide below a copy of an article in the Fiji Times on the comments made by the Governor of the Reserve Bank of Fiji.


"Governor: Fiji needs a sound financial system, Saturday, November 03, 2007

The Governor of the Reserve Bank of Fiji, Savenaca Narube says the country needs a sound and efficient financial system along with political stability to bridge the investment gap.

Mr Narube said with the 2008 Budget to be announced in two weeks, they were looking forward for better economic policies that would take the nation forward.

Mr Narube said a policy framework that would push the private sector as the "growth locomotion" had to be put in place.

He said if the private sector was to play its role, it needed certainty and predictability.

Speaking at the opening of the Rooster's Poultry Farm in Navau, Ba on Thursday evening, Mr Narube said the country's balance of payment was still an issue of concern.

Mr Narube said Fiji was losing a lot of money as the country's traditional exports had not performed well over the year.

"Collectively, exports of sugar, garment and gold are lower by $400million from their peak year and that is a lot of money to loose."

"This has been made worse by the rise in oil price which broke over $US90 per barrel recently.

"Our major policy challenge is clearly to address our widening trade deficit.

"Our policies of dampening import demand seem to be taking effect.

"However, the key is not so much to discourage imports but rather to grow our exports and we should continue to work hard at achieving this," he said.

He said an encouraging trend was the reduction in inflation.

He said they expected inflation to drop to at least 3.5 per cent by the end of the year. He said Government debt had increased to more than 54 per cent of the gross domestic product (GDP) and he would like to wish government well in their commitment to bring it below 50 per cent.

He also said while they were working very hard to improve investment as a catalyst of economic growth, they were expecting a drop by the end of the year.

Mr Narube said even though they had thrown in the figure of 25 per cent of GDP as a possible target, they were estimating it to fall back to about 15 per cent of GDP by the end of the year.

He said there was a lot of ground to cover and there were a host of factors such as political stability and economic fundamentals that had to be implemented in order to achieve it."

Fiji Development Bank Interest Rates (Updated 1.11.07)

Schedule of interest rates released by Fiji Development Bank are as follows :

• Residential Property Loan : Variable Rate - 10.25%, 1 Year Fixed Rate - 8.25%;
• Investment Loan : Variable Rate - 10.75%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

Colonial National Bank Interest Rates (Updated 3.11.07)

Schedule of interest rates released by Colonial National Bank are as follows :

• Business Banking Base Rate - 10.20%;
• Residential Property Loan : Variable Rate - 10.50%, 1 Year Fixed Rate - 8.50%;
• Investment Loan : Variable Rate - 10.50%, 1 Year Fixed Rate - 8.50%;
• Retail Term Deposits : 9 months - 2.60%, 1 year - 2.00%, 1.5 Years - 2.00%, 2 Years - 2.00%, 3 Years - 2.00%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

Home Finance Company reduces term deposit rates

Home Finance Company Limited, a deposit taking institution licensed by the Reserve Bank of Fiji, has reduced its 1 year term deposit rates to 3.75%, with effect from 1 November 2007. This rate is more than what the banks offer for the same term. For more information, pls contact your nearest Home Finance Company branch or check interest rates charged by other banks on this blog.

Westpac Interest Rates (Updated 1.11.07)

Schedule of interest rates released by Westpac Fiji are as follows :

• Business Lending Rate - 10.49%;
• Residential Property Loan : Variable Rate - 10.25%, 1 year Fixed Rate - 8.50%;
• Investment Loan : Variable Rate - 10.25%, , 1 year Fixed Rate - 8.50%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

Yatu Lau Initial Public Offering

The Yatu Lau Company Limited, a successful property development company, which was initially set up by the late President and Prime Minister, Ratu Sir Kamisese Mara, for the people of his province, has made its initial public offering.

Each share is being sold at F$1.50 - a large discount to what it is actually valued at.

The initial public offering closes on 30 November 2007.

To assist members of the public with their questions on the company and to issue copies of the company's Prospectus, the issue manager, Kontiki Capital, is organising the following public sessions during business hours on Wednesday, 7 November 2007 :

• at the Fiji Development Bank branch, Main Street, Nadi;
• at the Fiji Development Bank branch, 38 Vitogo Parade, Lautoka;
• at the Fiji Development Bank branch, Main Street, Ba;
• at the Kontiki Capital Office, Level 4, Plaza 1, FNPF Boulevard, Suva;
• at the Yatu Lau Office, Yatu Lau Arcade, Rodwell Road, Suva.

For more information, pls call a Kontiki licensed broker representative on telephone (679) 3307284 or (679) 9922923.