PRESIDENT of the Fiji Islands Ratu Epeli Nailatikau has encouraged all small business operators to start formalising their land leasing arrangement or purchases.
Speaking at the Fiji Development Bank Small Business Awards, Ratu Epeli said this would act as their security if they wanted to expand their business.
"For instance, if the enterprise wants to borrow money, it must have assets that are formally registered to it, which can then be used as collateral for a loan," Ratu Epeli said.
Within the informal economic system, he said the presence of assets is evident — a nice home in the village, a plantation and/or a few heads of cattle "or if you hail from Kadavu, a few goats on mataqali land".
He said this was recognised as dead capital because of the absence of documentation to represent formal ownership.