The Access to Business Funding Bill is set to receive parliamentary approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a session in Parliament. This significant legislation aims to tackle the financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, a concern recognized locally and internationally.
Kamikamica emphasized the urgent need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ declaration designating 2025 as the International Year of Cooperatives, underscoring the vital role cooperative models can play in promoting sustainable development and social progress.
To support the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, the recently approved Cooperative Development Fund aims to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to this crucial sector.
Recent public consultations have revealed that many SMEs struggle to access traditional financing due to barriers like inadequate revenue histories, credit ratings, or collateral. This has resulted in a substantial funding gap that the Access to Business Funding Bill seeks to bridge through innovative financial solutions. These include a small-offer regime to facilitate equity capital raising and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill progresses toward approval, there is growing optimism regarding its potential to create a more inclusive financial landscape in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could provide significant benefits for the wider community, enhancing the resilience of Fiji’s economy. The proactive measures outlined in this legislation indicate 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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