The Access to Business Funding Bill is expected to be approved by next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This vital legislation aims to address the significant financial challenges facing micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern recognized both nationally and globally.
Kamikamica highlighted the urgent need for improved access to finance, particularly in rural areas where cooperatives have shown effectiveness, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential of cooperative models in promoting sustainable development and social progress.
The Fijian government plans to modernize the legal framework for cooperatives, with anticipated amendments to the Co-operatives Act later this year. Additionally, the newly created Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, reinforcing the government’s commitment to this crucial sector.
Earlier public consultations revealed that many SMEs face significant barriers to traditional financing, often due to inadequate revenue histories, credit ratings, or collateral, which leads to a substantial funding gap. The Access to Business Funding Bill seeks to fill this gap by introducing alternative financing solutions, including a small-offer regime that facilitates easier equity capital raising and provisions for investment-driven crowdfunding options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is increasing optimism about its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could lead to significant positive outcomes for the broader community while enhancing the resilience of Fiji’s economy. The proactive measures represented in this legislation reflect a hopeful commitment from the government to cultivate a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
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