The Access to Business Funding Bill is set to be approved next week, as announced by Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a session in Parliament. This important legislation aims to address significant financial challenges faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, an issue recognized both locally and internationally.
Kamikamica emphasized that improved access to finance is essential, particularly for rural regions where cooperatives have proven effective, especially among indigenous Taukei communities. This initiative coincides with the United Nations’ designation of 2025 as the International Year of Cooperatives, which highlights the positive impact that cooperative models can have on fostering sustainable development and social progress.
To strengthen the cooperative sector, the Fijian government plans to modernize the legal framework governing cooperatives and aims to introduce amendments to the Co-operatives Act within the year. Additionally, a new Cooperative Development Fund has been approved by Parliament to enhance the operational capacity of cooperatives, highlighting the government’s ongoing commitment to this vital sector.
Earlier public consultations indicated that many SMEs face considerable barriers when attempting to access traditional financing, often due to inadequate revenue histories, credit ratings, or collateral. This situation has resulted in a notable funding gap that the Access to Business Funding Bill seeks to address through innovative financing solutions. These solutions include a small-offer regime to facilitate the raising of equity capital for private companies, as well as provisions for investment-driven crowdfunding options, such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As the bill approaches approval, there is a growing optimism regarding its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic growth, this initiative could yield significant benefits for the community and enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation mark a hopeful step towards nurturing a vibrant entrepreneurial ecosystem capable of sustaining long-term growth and development in the nation.
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