We acknowledge the traditional owners of this land and acknowledge presence representative of Tui Namoli.
1. The Chief Guest – Minister for Multi Ethnic Affairs and Sugar industry- Hon Charan Jeath Singh;
2. Cabinet Ministers;
3. Permanent Secretary for Multi Ethnic Affairs and Sugar Industry- Dr Kumar;
4. Other Permanent Secretaries;
5. Commissioner Western;
6. Our Development and Business Partners;
7. Sugar Industry Chairmen and CEOs;
8. Invited Guests, specially our sugar cane growers
9. Media Representatives; and
10. Fellow Board Members,
Bula Vinaka and Namaste
As we stand here today, we’re not just celebrating a new building; we’re celebrating a strategic investment in our future. Sugar Cane Growers Fund originated in 1947 and got enacted in 1959. It is in existence for over 7 decades but never had its “own building” to house itself.
Why this did not eventuate would be best known to the leaders of that time. Apart from growers we funded industry stakeholders as and when needed. Ironically SCGF funded SCGC building in late 1990s and continued to rent it.
It is a historic day for SCGF, opening of its own Head Office and ‘Lautoka District Office. This premises will
a. Bring efficiency in the services logistically;
b. Provide better representation and identity;
c. Allow flexibility as the owners of the building;
The move does not mean ceasing tenancy relationship with Sugar Cane Growers Council. We will continue to co – rent offices in Seaqaqa, RakiRaki and Tavua for the time being but will explore for strategic locations wholly or jointly.
In the last 18 months SCGF has invested to into three real estate properties with investment of $6.8m having a Return on Investment of over 7 percent p.a.
There are –
a. HFC Centre in the main Lautoka city fully tenanted with long leases;
b. A vacant lot in Veitari for which concept plan is being drawn and expect construction by early year;
c. This building with renovation and plans for second phase to start next year too – Security and Filing Rooms, Board and Training rooms on first floor.
The investment in real estate has been part of our strategic plan which represents our commitment to prudent governance, diversifying our Balance Sheet, one of the key pillars for Sustainable Growth and Returns. Over 61 % of our exposure remains in the sugar industry and that does not mean the diversification would dilute our core business. In the last 11 months, we have increased the grower loan book size from $32.5m to $36.05m and that shows our commitments and priority to the growers, an increase of 11 percent
There is no other financial institution as deeply connected to the sugar cane growers as we are, and that is the responsibility – I don’t take that for granted.
By investing in this space, we’re:
a. Reducing risk: Spreading our investments across different asset classes;
b. Generating returns, creating a new revenue stream through rental income which is passed down to the growers; and
c. Building Value Appreciating asset over time that will make the balance sheet healthier.
Overall this investment aligns with our goal to build a strong, resilient institution that benefits our growers, our people, and Fiji’s economy. We’re proud to put the money where our motto is, “financially empowering the sugar industry.”
Let me explain how, through this simple maths-
a. From January this year (2025) – we have reduced interest rate from 6 percent to 4.5 percent. That 1.5 percent cent on the book size of $36m equates to $540,000.
b. From August this year, we are paying Mortgage Protection Cover for the growers that again is in excess of $400,000 per annum.
c. There are various other programs like discounted application fee and Concessional Interest rate (without any Government subsides, though we had requested) that would be another $100,000.
d. So in the current space, it is over $1million that SCGF is giving back to the growers and that is in the last 12 months.
On this investment, moving into its own building, SCGF will not only save rental of $100,000 p.a but would have adequate decent space for its customers and staff. The opportunity benefits on the investment of $1.63m is $100,000 compared to; if invested in 12- Term Deposit will get interest of $33,000 at 2%. In addition, we will have an appreciation in the property value.
Hon Minister, ladies and gentlemen with such savings yesterday at our Board meeting, we agreed and I am pleased to announce that effective from 1st January 2026 all productive loan accounts interest rate will reduce from 4.5 percent to 3.95 percent.
In addition, those with 75% plus green cane harvest, rates will reduce from 4 percent to 3.5 percent, demonstrating our commitment for green finance initiative. Again these reductions come with very thorough and prudent assessment to support the growers and industry to increase the production and reduce the burden. This 0.55 percent reduction will have impact of $200,000.
In addition, the Board approved Gender Equality, Disability, Social Inclusion framework. As the women farmer’s application fee being discounted by 50% and for growers with disability having 100%, from next year, any applicant as youths (below age of 35 years) will have loan application fee also discounted by 50% for farm and machine purchase.
Furthermore, all the women, youths and growers with disability, for any farm and machine purchases will have reduce equity of 10%, compared to others 20% and machines and implements as zero equity, compared to others as 5%, provided fully secured mortgages are given. This shows our commitment under Women Entrepreneurs Finance Initiative (We-Fi) that supports women entrepreneurs under the RBF and ADB Initiatives.
We are committed to generate over $1million from investment that directly or indirectly that will be passed to the growers.
SCGF is totally committed to look at the welfare of the growers and the industry.
We-
a. Continuously review our products and services to complement Government initiatives, industry aspiration and support National Development Plan;
b. Our initiatives have been acknowledged by development partners like United Nation Capital Development Fund, Business Link Pacific and Asian Development Bank, who have provided us financial and technical support under various program that we pass to our growers;
c. Ensure that Governance and Risk Management are effectively managed, in all our investments, including South Pacific Fertilizers Ltd in which we hold 90.4% shares.
d. Hon Minister, as you are aware SCGF Act that has been in train for last three years that needs to be reviewed in improving its governance structure, allowing to expand investments and increase the scope of loans. We could not lend to wider cane farming community like Co-operatives, Companies engaged in the industry or even grower’s spouses who may wish set up a backyard poultry or any other business.
e. There are programs that we can support as “Agro Finance MSME” institution for likes of Dairy or Fisheries to complement growers and immediate families, nothing that we already have MOU with Ministry of Agriculture and Ministry of Forest & Fisheries. We see number of Bills have been expedited through the process recently. We need Ministry’s support in this. The sooner the better.
f. Hon. Minister, you have great vision for reform of the industry, we at SCGF are totally committed to support your program.
Finally, thank you Hon Minister, Cabinet Ministers invited guests. Let’s make this a day to remember!
On behalf of the SCGF Board, Management and staff wish you all a Merry Christmas and prosperous 2026.
Vinaka vakalevu, and let’s celebrate the opening of our new Head Office!
