A significant narrative has emerged from a group of Micro, Small, and Medium Enterprises (MSMEs) in Fiji who collaborated to advocate against a banking decision that they believed would disrupt their operations. This account not only highlights their local efforts but also serves as an example to the international community.
The Fiji Micro Small and Medium Entrepreneurs Community (FMSMEC) was formed to maintain a streamlined operation via a Viber group, acting as a proactive network for MSME owners. Through their day-to-day interactions with banks, members quickly recognized that the planned discontinuation of cheques would create potential disruptions rather than benefits for their businesses.
The narrative gained traction through an article published in The Fiji Times on April 27, 2024, which emphasized the apprehensions of MSME owners while acknowledging their eagerness to embrace digital transformation in a manner that does not exclude them.
The Reserve Bank of Fiji (RBF) revealed that the proposal to phase out cheques was initially submitted by the Association of Banks in Fiji (ABIF) in December 2021. The decision, taken without consulting the MSMEs, was approved by the previous government, which tasked the ABIF to raise awareness about the transition while allowing adequate time for adjustment.
By September 2022, the ABIF and RBF publicized the plan to phase out cheques starting in 2024, with a press release in March 2023 affirming the timeline. In December 2023, the RBF indicated that awareness campaigns regarding the cheque discontinuation would commence following the onboarding of mobile network operators.
However, the FMSMEC identified that the lack of consultation, coupled with existing challenges related to digital payment systems, imposed significant barriers to business. In response, a member proposed proactive measures in March 2024, leading to vibrant discussions within the Viber group that underscored the absence of nationwide awareness about the changes, particularly in rural and maritime communities.
A working group was formed to spearhead the lobbying effort, supported by two MSME development specialists. As discussions escalated and shared experiences surfaced, it became clear that coordinated advocacy was necessary to challenge the banks’ plans.
On March 13, 2024, in response to the lobbying, the ABIF announced that the timeline for phasing out cheques would be delayed until July 1, 2024, with a halt on new cheque book issuance and a full cessation of cheque processing by January 1, 2025. This shift demonstrated that the FMSMEC’s efforts were being acknowledged.
Subsequently, on March 19, 2024, the MSME community formally addressed the RBF Governor, articulating their concerns and setting off a considerable reaction from the RBF, which pledged to consult all relevant stakeholders regarding the transition and to ensure that banks would adequately inform their customers about available digital alternatives.
The FMSMEC’s continued advocacy garnered further recognition, culminating in a major private company voicing its objections to the cheque phase-out, reinforcing the collective stance that Fiji was not yet ready for this transition.
Despite some awareness efforts following the announcement, the FMSMEC maintained that genuine consultations were lacking, particularly given the complexities of over 40 pieces of legislation needing amendment in Parliament.
As the situation evolved, an important awareness session facilitated by the RBF on April 24, 2024, allowed for in-depth dialogue about the issues facing MSMEs and the viability of upcoming digital payment platforms. This meeting revealed that the banking sector and the RBF had yet to finalize their readiness for the proposed transition.
In a major development in June 2024, the ABIF rescinded its earlier deadlines for ceasing cheque issuance and processing, acknowledging the need for broader consultations. This decision was met with widespread approval from the MSME community and demonstrated the impact of the FMSMEC’s advocacy efforts.
Lessons from this experience emphasize the necessity of consulting MSMEs on policies directly affecting their businesses, as they represent a significant portion of Fiji’s workforce and economy. The FMSMEC model showcases the value of effective networking and advocacy in fostering a supportive business environment.