The newly-formed Fiji Democratic Party says it will aim to promote democracy and multi-racialism.
The general secretary of the party, Filipe Bole, says there is too much political instability in Fiji caused by the amount of racism that permeates the country.
Mr Bole says the Fiji Democratic Party will steer itself away from this to include people from all races.
He says members behind the formation of the new party are concerned about the eroding confidence in the economy because of the instability, with people reluctant to invest and some existing investors pulling out their money.
Mr Bole, who is a former Fiji ambassador to the United Nations and longtime cabinet minister, says the Fiji democratic Party will become an alternative voice outside parliament and speak on issues that affect the people.
He says his SVT party lost the last general election because it simply could not compete with the SDL which was handing out goodies worth millions at the taxpayer's expense.
Members of the SVT, the Fijian Association Party and the New Labour Unity Party have formed the Fiji Democratic Party which will be registered this week.