The Access to Business Funding Bill is anticipated to receive approval next week, according to Deputy Prime Minister and Minister for Trade, Manoa Kamikamica, during a recent parliamentary session. The legislation aims to address the significant financial obstacles faced by micro, small, and medium enterprises (MSMEs) and cooperatives in Fiji, issues acknowledged both nationally and internationally.
Kamikamica highlighted the urgent need for improved access to financing, particularly in rural areas where cooperatives, especially among the indigenous Taukei population, have shown effectiveness. This initiative aligns with the United Nations’ declaration that 2025 will be the International Year of Cooperatives, reinforcing the cooperative models’ potential to promote sustainable development and social progress.
To enhance the cooperative sector, the Fijian government is planning to modernize the legal framework governing cooperatives, with amendments to the Co-operatives Act expected this year. Furthermore, a newly established Cooperative Development Fund, recently approved by Parliament, aims to boost the operational capabilities of cooperatives, underscoring the government’s commitment to this crucial sector.
Public consultations conducted earlier this year revealed that many SMEs struggle to access traditional financing due to barriers like insufficient revenue histories, credit ratings, or collateral, resulting in a notable funding gap. The Access to Business Funding Bill is poised to bridge this gap through innovative financing solutions, including a small-offer regime that permits private companies to raise equity capital more easily, alongside provisions for investment-driven crowdfunding options such as equity crowdfunding (ECF) and peer-to-peer lending (P2PL).
As this bill progresses toward approval, there is growing optimism about its potential to create a more inclusive financial environment in Fiji. By empowering entrepreneurs and stimulating local economic development, this initiative could yield significant benefits for the wider community and enhance the resilience of Fiji’s economy. The proactive measures reflected in this legislation indicate a hopeful commitment from the government to establish a vibrant entrepreneurial ecosystem capable of supporting enduring growth and development throughout the nation.
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