The Access to Business Funding Act 2025 has officially launched this month, bringing new capital-raising opportunities for businesses in Fiji, particularly benefiting micro, small, and medium enterprises (MSMEs). The Ministry of Trade has announced that this new legislation represents a significant advancement in the financing landscape, allowing businesses greater access to investor and lender funding through innovative methods.
According to the Ministry, the Act modernizes the legal framework to facilitate alternative financing routes that go beyond traditional bank lending, addressing long-standing barriers faced by MSMEs. A key feature of this legislation is the introduction of the Small Offers regime. This new provision allows private companies to raise up to $2 million from a maximum of 48 investors within a 12-month period, ensuring compliance through investor caps and necessary disclosures. This framework not only simplifies the compliance process for businesses but also maintains strong protections for investors, including limiters for retail, sophisticated, and wholesale investors, along with a requirement to submit a Basic Information Package to the Reserve Bank of Fiji prior to any fundraising efforts.
The Ministry emphasized that this program is not a government grant or subsidy but rather a regulated investment pathway aimed at connecting businesses with private investors and financial institutions, ultimately unlocking vital growth capital to enhance job creation. To aid businesses in navigating these new opportunities, the Ministry plans to conduct an information session to provide further details on the Act and the Small Offers regime.
The initiative is a collaborative effort involving the Fiji Government, the Reserve Bank of Fiji, and the Asian Development Bank’s Pacific Private Sector Development Initiative (PSDI). Jeremy Cleaver, a senior finance sector specialist at PSDI, expressed enthusiasm for the new legislation, stating that it marks a major advancement for Fiji and the Pacific region.
An Implementation Taskforce has been established, consisting of representatives from the Trade Ministry, the Registrar of Companies, the Office of the Solicitor – General, the Reserve Bank of Fiji, the MSME Council, and PSDI. This taskforce will oversee the phased implementation of the new framework, focusing on equity and debt crowdfunding mechanisms that build on the Small Offers regime, and will also develop targeted awareness and education programs so MSMEs and investors can fully understand the opportunities and responsibilities presented by the new law.
Leave a comment