The Access to Business Funding Bill is set for approval next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a parliamentary session. This important legislation is specifically aimed at addressing the significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both locally and internationally.
Kamikamica emphasized the urgent need for improved access to finance, particularly in rural regions where cooperatives have historically proven effective, especially among the indigenous Taukei population. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, highlighting the potential role cooperative models can play in fostering 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 expected this year. Furthermore, the Cooperative Development Fund—recently approved by Parliament—aims to enhance the operational capabilities of cooperatives, further committing the government to bolster this essential sector of the economy.
Public consultations conducted earlier this year revealed that many SMEs encounter significant barriers when trying to access traditional financing options, often due to insufficient revenue histories, credit ratings, or collateral. This has resulted in a substantial funding gap, which the Access to Business Funding Bill seeks to bridge through innovative financing solutions. These include a small-offer regime that facilitates equity capital raising and provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill moves closer to approval, there is increasing optimism about its potential to create a more inclusive financial environment in Fiji. This initiative is poised to empower entrepreneurs and stimulate local economic growth, leading to significant positive outcomes for the broader community and enhancing the overall resilience of Fiji’s economy. The proactive measures reflected in this legislation underscore the government’s hopeful commitment to cultivating a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development throughout the nation.
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