The Access to Business Funding Bill is on track for approval by next week, as confirmed by Deputy Prime Minister and Minister for Trade Manoa Kamikamica during a parliamentary session. This significant legislation is designed to address the financial obstacles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji. These challenges have garnered attention both locally and internationally.
Kamikamica underscored the pressing need for improved access to finance, particularly in rural areas where cooperatives have proven effective, especially among indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, which emphasizes the important role that cooperative models can play in fostering sustainable economic growth and social advancement.
The government plans to modernize the legal framework that governs cooperatives, with amendments to the Co-operatives Act anticipated this year. A newly launched Cooperative Development Fund, recently approved by Parliament, aims to enhance the operational capabilities of cooperatives, showcasing the government’s commitment to supporting this critical sector.
Public consultations earlier this year highlighted that many SMEs face barriers when trying to access traditional financing, largely due to insufficient revenue histories, credit ratings, or collateral. This has resulted in a significant funding gap. The Access to Business Funding Bill aims to bridge 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 benefit the broader community and enhance the resilience of Fiji’s economy. The government’s proactive measures reflect a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development across the nation.
This initiative not only aims to address immediate financial challenges but also lays the groundwork for long-term economic stability and growth, making it a promising step in the right direction for the Fijian economy.
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