Fiji

FIJI Post-Disaster Needs Assessment
Social Impact of Damage and Losses
A significant number of manufacturing and retail operations located in the affected zone reported temporary closure for a
few days following TC Winston as a result of intermittent electricity and water supply outages, and the limited accessibility
of staff and customers to places of business. Wholesale operators were largely spared as they operate from outside
the TC Winston-affected zone. Employees were temporarily laid off and livelihoods impacted as alternative sources of
income were limited. Furthermore, most of these workers also suffered damage to their houses and subsistence crops and
livestock, which compounded the impact. In particular, survey data collected found a total of 554 short-term jobs in the
manufacturing sector were lost within two weeks following the cyclone. In general, for each person who lost a job, at least
two to three other people presumably would be affected by this loss in their household. Alternative job opportunities were
limited given the broader impact of TC Winston, which would have exacerbated the household-level impact.
Around 43 percent of micro and small enterprises, which contribute to both manufacturing and commerce activities, have
suffered extensive damage and losses. Of this, 38 percent are female entrepreneurs who had engaged in some form of
business activities. Both women and men have sustained damage to their businesses and will continue to incur losses,
particularly losses in food processing enterprises arising from primary production losses sustained in the agriculture sector,
and livestock and fisheries subsectors (refer to Section 3.1.1 for more information). As savings are diverted towards
meeting basic household needs and home reconstruction, there may not be enough capital available to restore businesses.
Similar challenges can be anticipated for cooperatives, which along with micro and small business enterprises, employ a
high number of women due to the flexibility and low-entry capital requirements.
Cooperatives are also reportedly sustaining damage to assets and losses in revenue. Some cooperatives provided ecotourism
services and recovery will depend not only on reconstruction of assets but broader recovery in visitor arrivals
and the tourism sector. (Refer to Section 3.1.3 of this report for more information on damage and losses to the tourism
sector). Recovery for SMEs and cooperatives could be further impeded due to limitations on accessing the loans and
micro-finance that may be needed to inject cash into their businesses to help post-disaster recovery. Limited access to
loans may be a bigger challenge for women, as they often have difficulty in accessing financial services under ordinary
circumstances. Targeted intervention to support cooperatives and SMEs is, therefore, important to ensure women are not
left behind in the recovery process. Recovery efforts should focus on facilitating access to soft credit and low interest rates
for SMEs. Medium- and long-term skills development and direct access to external markets are also needed for women
entrepreneurs to reduce their reliance on local tourist markets and to enhance their resilience against future disasters.
Recovery and Reconstruction Needs for the Commerce and Manufacturing Sector (F$61
million)
Private businesses in the commerce and manufacturing sector have been affected by TC Winston, particularly in terms
of sugar manufacturing. The total recovery and reconstruction costs are estimated at F$61.3 million 60 and considerable
support to avoid a prolonged reduction in the country’s production capacity is needed. Reconstruction and recovery will
need to rely on a combination of subsidised loans, commercial finance, insurance, grants, private savings and exemptions.
The weight to be given to the respective instruments and their detailed design will be decided upon further assessment.
Development partner support will be necessary in most parts. In addtion, the financial and insurance sectors will need to
play a proactive role, with, for example, lodging and processing insurance claims in a timely manner.
A number of specific recovery needs have been identified by the sugar stakeholders, in particular, repair of sugar processing
equipment and vessels, and electrical and electronic control facilities. Further repairs of roofs, civil works and administrative
offices will be carried out in 2017. The Penang Mill may be dismantled and options on a way forward for the mill is yet to be
determined. Stoppage of the Penang Mill will have a direct consequence on transport costs to the Fiji Sugar Corporation
with an additional F$25/tonne expected to cart cane from from the Penang to the Rarawai Mill in Ba. In addition, railway
and road infrastructure for cane delivery requires upgrades.
The short-term support identified by the commerce and manufacturing sector should not deviate attention from pursuing
the long-term policy priorities identified by the government for developing these sectors as identified by the National
Development Plan, the 2016 National Budget Strategy and the 2015 Trade Policy Framework. Longer-term support directly
linked to coping with risk from natural disasters needs to be aligned with the National Development Plan and associated
government strategies.
60
Damage and losses in the sector multiplied by a factor as per the Damage and Loss Assessment methodology and, based on stakeholder
consultations, sugar sector specific recovery needs have been incorporated. The BBB principle has been incorporated where appropriate.
Estimates do not include insurance claims, which were not processed at the time of the assessment.
56 Tropical Cyclone Winston, February 20, 2016