The Access to Business Funding Bill is expected to be approved next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, who made the announcement during a parliamentary session. This significant legislation aims to address the financial challenges that micro, small, and medium enterprises (MSMEs) and cooperatives face in Fiji, an issue recognized both nationally and internationally.
Kamikamica highlighted the urgent need for improved access to finance, particularly in rural areas where cooperatives have shown effectiveness, especially among the indigenous Taukei communities. This initiative aligns with the United Nations’ designation of 2025 as the International Year of Cooperatives, emphasizing the potential of cooperative models in fostering sustainable development and social progress.
To support this sector, the Fijian government plans to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act anticipated this year. Additionally, a Cooperative Development Fund has been established and approved by Parliament to enhance the operational capabilities of cooperatives, reflecting the government’s commitment to strengthening this vital economic sector.
Public consultations conducted earlier this year revealed that many SMEs encounter substantial barriers in accessing traditional financing, often due to inadequate revenue histories, credit ratings, or collateral. This has led to a significant funding gap that the Access to Business Funding Bill is designed to bridge through innovative financing solutions. These include a small-offer regime to facilitate equity capital raising and provisions for investment-driven options like equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is substantial optimism regarding its potential to foster a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could result in significant positive impacts for the broader community, enhancing the resilience of Fiji’s economy. The government’s proactive stance reflects a hopeful commitment to nurturing a vibrant entrepreneurial ecosystem capable of supporting sustained growth and development throughout the nation.
This development serves as an important step forward, highlighting the commitment of the Fijian government to improve access to finance and support the economic empowerment of its citizens, particularly in rural areas.
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