Fakatava is back in action after missing much of last season due to a knee injury, and the rivalry he will provide for fellow halfbacks Smith and Kayne Hammington was important for the Highlanders' game plan, Smith said.
"It's great to have Folau back, on and off the field. He's a good man. He's been around our environment a few years now, and the growth I've seen in him, and, physically, since his knee injury, you wouldn't even know it happened.
"He's in phenomenal nick. I see our combination being a big part of what our game is trying to be, playing at speed and control and attacking space for 80 minutes," he said.
Having two or three quality halfbacks would allow them the scope to put their plan into practice, he said.
"I'm excited for him to get back on the field. We all know from the last couple of years he's got a bright future," he said.
Smith said he was feeling great both physically and mentally. Coming into the pre-season early was good for his body, while it also allowed him to get to know the young Highlanders squad and build their game.
"It was a chance to rejuvenate, probably light the fire a bit not playing many games since August. I can't wait to do it for real," he said.
Smith said his captaincy would be supported by his vice-captains first five-eighths Mitch Hunt and flanker James Lentjes. They were a good unit, he said.
"Mitch runs our attack and Jimmy is our defence guy. We run our own areas. I might have the last word in a huddle but other than that I see it as a unit, not just myself," he said.
Coach Tony Brown said All Black prop Ethan de Groot having consistent starts and more game time in Super Rugby had seen him grow.
"You saw his ability on the rugby field as pretty exciting which is exciting for New Zealand rugby. He hasn't played a lot of rugby in the last six to eight months so he's got to work his way back to full fitness and it's going to take him a little while," he said.
The return of Gareth Evans to the Highlanders was timely. He was a leader in the side and created energy among the group.
"He's going to have a big day at No8 at the weekend but I'm sure he is going to get stuck in at the breakdown and cause a bit of havoc there," he said.
Smith said the key to refereeing aspirations with the breakdown was consistency in their rulings and setting their standards early in games.
"It feels like we've had rules come in in the past, and then they drift back to the old ways when guys can lie at the back of the ruck, impede our ball and not release post-tackle.
"Highlanders' rugby is all about playing at speed and seeing opportunities so that is how we'll be looking to play on Saturday," he said.