Survey: 1 per cent of businesses were insured

A NEW research has revealed that just 1 per cent of businesses among the hardest hit by Tropical Cyclone Yasa were insured against the disaster.

Carried out by the International Finance Corporation (IFC) and the Ministry of Commerce, Trade, Tourism and Transport (MCTTT), the Fiji TC Yasa Business Survey revealed that the financial impact on more than 1500 Fijian businesses, which were among the hardest hit by TC Yasa, is estimated at $25 million.

The survey also revealed that 92 per cent of the businesses surveyed were impacted by TC Yasa, with the Northern region being the most impacted by the cyclone.

According to the survey 98 per cent of businesses were affected in Bua, 96 per cent in Macuata and 88 per cent in Cakaudrove.

The agriculture, manufacturing and vehicle services industries encountered the greatest losses per business, with medians of $9000, $7400 and $11,985 per business respectively.

Meanwhile, the wholesale and retail businesses reported the largest loss overall with $15.1m in total for the industry (due to the high response rate of this industry).

“Fiji’s economy is resilient and has overcome many challenges in the past, but this is certainly one of the most trying times the country has seen as it responds to the devastating impact of weather events as well as the COVID-19 pandemic,” said Deva De Silva, IFC Resident Representative to Fiji, Kiribati, Samoa, Tonga and Tuvalu. “The country’s economic recovery from the pandemic as well as the natural disasters must be well thought out and studies like this can be valuable tools for helping the government and development partners respond appropriately, including in terms of providing targeted assistance.”

The survey highlighted that before TC Yasa, 80 per cent of the businesses surveyed were saving profits or growing with only 2 per cent in decline.

It said after the cyclone and during the survey period, 29 per cent were hibernating or had permanently closed, and only 47 per cent were fully functioning.

According to the IFC of the businesses surveyed, 86 per cent were deemed to be microbusinesses, all of which had turnovers not exceeding $50,000 per year.

Australian High Commissioner to Fiji, John Feakes said the resilience of the Fijian people was well known but in these times it was important that targeted assistance was used to help those who needed it most.

“Fiji’s economic recovery is dependent upon a resilient and thriving MSME sector,” said Jonathan Curr, the New Zealand High Commissioner to Fiji.

“We are delighted to see increased strength of advisory services and acknowledge the positive impact initiatives such as Business Link Pacific & MSME Fiji have in supporting recovery strategies.”